The American Wind Energy Association (AWEA) applauds the unanimous approval by the Federal Energy Regulatory Commission (FERC) of a new California Independent System Operator (ISO) transmission policy.
The policy, which the US wind energy industry has worked to develop and support, aims to address the "chicken or egg" problem that has bedeviled wind power development where no wind farms are built unless there is transmission, and no transmission is built unless there are wind farms already in place. Today's ruling in effect states that, in windy areas where there is no transmission, transmission should be financed and built first as long as it is clear that there is a large energy resource to be tapped and that there is some financial commitment on the part of generating companies to eventually develop projects in the area. The FERC decision comes at a time when similar policies are being implemented at the state level, including in Texas, Colorado, Minnesota, and California. With the FERC decision, this policy can now be pursued by every transmission provider in the country with a FERC jurisdictional transmission tariff.