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Pricing of power transmission services

Traditional cost-based pricing is better than market-based pricing of power transmission services, says the American Wind Energy Association (AWEA). In comments filed late January, AWEA asked the Federal Energy Regulatory Commission (FERC) to support cost-based pricing because the utilities have a monopoly on transmission of electricity. FERC is reviewing the matter as mandated by the Energy Policy Act. AWEA is encouraging FERC to unbundle transmission and generation costs; eliminate distance-based transmission rates; establish joint region-wide or control-area-wide transmission rates; and explore methods of improving flexibility for intermittent resource generators.

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