Law360 Publishes Energy Attorneys' Article on DC Circuit's FERC ROE Decision

Publisher: Law360

May 21, 2013

Day Pitney Author(s) David T. Doot Joseph H. Fagan Eric K. Runge

In a May 21 article for Law360, Michael Hornstein, David Doot, Joseph Fagan, Michael Stosser and Eric Runge discuss the D.C. District Circuit's decision to support FERC's basing return on equity on the median of a zone of reasonableness. Southern California Edison had challenged the use of median rather than the midpoint for several transmission projects. The attorneys write that "using the median instead of the midpoint can have a material affect on the ROE, with a correspondingly large revenue impact. It remains to be seen whether this decision will be a precursor to an industrywide reassessment of existing ROEs, potentially triggering numerous complaint proceedings seeking to lower ROEs to reflect the commission's current methodology."

The full article can be found here.

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