Utility regulators from some 35 states want FERC to cap (or even toss) the 0.5% return on equity incentive it gives to utilities that join RTOs. (Utility Dive)
The why: The RTO incentive adds millions to ratepayer costs without meaningfully changing the way utilities operate, the regulators argue.
Worth noting: Limiting the ROE incentive could hamstring utility income. Public Service Enterprise Group said the move could cut annual net income and cash inflows by about $40 million for its Public Service Electric & Gas subsidiary, for example.