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Dive Brief:
Maryland agencies last week asked the Federal Energy Regulatory Commission to strip Exelon and FirstEnergy utility subsidiaries, as well as a NextEra Energy unit, of the extra 0.5% return on equity they earn for being voluntary members of the PJM Interconnection.
The complaint was filed on July 2, about seven weeks after Maryland Gov. Wes Moore, D, signed the Utility RELIEF Act into law, which took effect on July 1 and includes a provision requiring the state’s transmission owners to be PJM members.
Removing the ROE “adder” that transmission owners earn for participating in the PJM would save Maryland ratepayers more than $20 million a year, according to the complaint. The complaint will likely be successful given precedent that was set in California and Ohio, Jefferies equity analysts said in a client note Monday.
