The article discusses a request by a group of energy companies, including ITC Holdings Corp., to the Federal Energy Regulatory Commission (FERC) to limit competition in the transmission phase of energy delivery. These companies are asking FERC to suspend Order 1000, which mandates a competitive bidding process for building transmission lines unless states opt-out of this requirement.
ITC’s director, Davis Strobridge, argues that while Order 1000 was initially intended to increase efficiency and introduce new entrants into the transmission market, it has not met its goals. The lengthy bidding process, which can take up to two years, delays essential projects amid rising energy demand.
In contrast, Paul Cicio from the Electricity Transmission Competition Coalition (ETCC) advocates for maintaining Order 1000, asserting that competition drives down costs and fosters innovation. Cicio cites studies showing that competitive projects have fewer cost overruns and overall cost reductions.
Strobridge counters that while competition might lower initial costs, new bidders’ unfamiliarity with construction terrains can lead to long-term overruns. Both parties anticipate a decision from FERC soon, though an exact timeline remains uncertain.
