Monday, December 01, 2003

FERC takes on state law to allow Virginia power companies in regional transmission group

The Federal Energy Regulatory Commission (FERC) has ruled that the Virginia General Assembly and Virginia's State Corporation Commission had no right to prohibit the state's power companies, including Dominion and AEP, from joining the PJM regional transmission group for the Mid-Atlantic states - according to this report in the Richmond paper. Virginia lawmakers and regulators have expressed fear that allowing these companies to join a multi-state group would result in the loss of low rates for power to Virginia's consumers.

Now, you'd think that a state law affecting interstate power transmission would almost surely be unconstitutional as against the Interstate Commerce clause, somehow or another, but the state officials in this instance are arguing that what is unconstitutional is FERC's action.

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