Here’s an interesting article in today’s WSJ on the current economics of electric transmission

Some excerpts:

Some companies …. are pouring money into high-voltage transmission lines—superhighways for electricitybecause federal regulators are allowing them to collect above-average returns from customers on those outlays to encourage new investment in the nation’s aging power networks.”

“Ralph Izzo, the company’s CEO, recently told investors that he likes spending on power transmission, because “it’s not dependent on [electricity] load growth.” Part of his motivation is the return on equity of 11.7% to 12.9% set by the Federal Energy Regulatory Commission.” [emphasis mine]

Read the whole article.

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