Friday, November 19, 2010

SMG&T Dodges a bullet

I had previously posted about how SMG&T was having trouble with understanding its obligations upon reserving transmission (see the inaugural post).  Yesterday the FERC resolved the situation (at least until NWMT appeals), in favor of SMG&T. 

The FERC's decision is available here.  FERC's rational is, and even in context of the topic, technical.  Basically, NWMT did not have SMG&T execute the correct contract for the type of transmission service that they secured.

I am a little disappointed. SMG&T had held some valuable transmission capacity for a long-time, and the FERC's decision did not penalize them for not doing better due diligence.  Gaelectric and Naturener, and other wind developers might have been able to get projects moving without the request in the way.

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