CPUC Attempts to Define Transmission ?Benefits?

By Published On: July 2, 2005

The California Public Utilities Commission opened an investigation into determining the appropriate methodology for evaluating the economic benefits of transmission projects proposed by regulated electric utilities in California. The commission will coordinate its investigation with Southern California Edison?s application for construction of the Devers?Palo Verde No. 2 transmission line project. The California Independent System Operator approved the Devers 2 project in February. ?Ultimately our goal is to create a common tool for the commission to use in evaluating transmission projects,? the CPUC stated. The commission also denied SoCal Gas?s request for authorization of a new gas transmission rate structure to enable the utility to offer firm and interruptible gas transmission service to a Mexican company at the Mexicali border station. The Imperial Valley has been a constrained area for the last four years. The CPUC?s Energy Division warned that supplying Mexican customers on the constrained system would degrade service for existing SoCal Gas customers. Edison protested the proposed tariff as more favorable to new Mexican customers than SoCal Gas?s other customers.

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