Subject: Orders issued today on interconnection matters
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Date: Wed, 24 Oct 2001 13:23:29 -0700 (PDT)

Today the Commission issued the following orders pertaining to transmission interconnection:

AEP -- Order granting rehearing on issue of interest on transmission credits for network upgrades (ER01-2163):  Commission reversed its July 26 decision in which it  refused to require AEP to pay interest on credits for system upgrades.  The Commission noted that it will be initiating a generic rulemaking in the near future on interconnection procedures.  However, in the interim, its policy is that "the addition of an interest payment in connection with system upgrades is appropriate."

NYISO - Cost responsibility for new interconnections.  (ER01-2967):  The Commission approved tariff changes by NYISO allocating cost responsibility for interconnection facilities.  The provisions allocate to developers 100% of the cost of facilities necessary to physically interconnect the project.  Additionally, developers are allocated the coswts for transmission system upgrades that would not have been made "but for" the interconnection, minus the cost of any facilities that the NYISO's regional plan dictates would have been necessary anyway for load growth and reliability purposes.  

Please contact me if you need further information.

Susan Lindberg
x30596