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Is the federal government driving up power prices for consumers?
The federal government’s policy of handing out special incentives to owners of transmission lines to build new projects to enhance the reliability of the regional power grid is increasing rates to consumers by “hundreds of millions, if not billions of dollars,” according to a filing made by New Jersey regulatory officials, other states, and consumer advocates.
In comments forwarded to the Federal Energy Regulatory Commission (FERC), New Jersey questioned the rationale behind giving incentives to transmission lines but not to power plants, which it argues could be a “cheaper, more environmentally-friendly and efficient solution to existing supply needs.” (Johnson, NJ Spotlight)