Regulatory Issues
To promote state and federal rate policies that support transmission investment by ensuring regulatory certainty, adequate returns on investment, timely cost recovery and capital attraction.
In order to attract sufficient capital to fund much needed transmission investments, policies must be in place that provide for timely and full recovery of costs and a sufficient return on those investments. Regulated rates of return on investment capital must be competitive and sufficient to compensate investors for the risks they assume. Whether these investors come from outside the industry or traditional utilities, they too seek reasonable assurance that prudently incurred investment will be fully recovered in a timely manner. The urgent need for grid investment underscores why it is important to show capital markets that revenues to support investment in new transmission will flow to the transmission provider in a timely manner after the investment enters service and begins to benefit the public. Wholesale and retail rates must be updated in coordination to avoid "trapped" costs and alleviate the uncertainty that currently afflicts investment in new transmission.
WIRES is dedicated to creating a regulatory environment that provides reasonable assurance to investors so that available needed capital flows to supportable projects that secure the public interest. It will promote legislation and regulatory policies at the state and federal levels that will encourage sufficient rates of return on equity and other rate treatments that allow this critical network industry to serve the public adequately. WIRES contends that policymakers and the public underestimate the benefits of transmission and the potential for serious problems associated with inadequate delivery of power in many regions. Far from representing "gold-plating" of the power system, transmission investment, when viewed in its proper role of linking customers and resources, represents a good value for investors and consumers.