Statement of Principles

(1) Uniformity of Energy Types and Technologies. All aspects of the compact shall pertain equally to all energy generation methods. Ensuring that the compact is energy and technology neutral prevents any preferential treatment and maintains the integrity of the compact’s focus on developing free market competition that has been proven to provide ratepayers with the lowest cost electricity while maintaining reliability.

(2) Non-Industry Specific. Transmission project costs shall be allocated holistically to all beneficiaries of the development, without targeting specific industries. End use ratepayers are not the only beneficiaries of new transmission lines and creating a framework that allows states to consider all benefiting stakeholders when deciding to whom to allocate costs is paramount to achieving equitable beneficiary costs, promoting member states’ collective autonomy, as well as protecting current and future industries from regulatory targeting.

(3) Equal Protection of States. The compact shall apply equally to all states that enter into the compact, regardless of whether they were founding members or entered into it after the establishment of the compact. It is imperative that the compact protects states both pre- and post-, inception so that states feel that there is security for their respective states when entering into a competitive bidding process. This also ensures that states can move at their own pace as the compact does not disincentivize non-member states to join the compact at a later point.

(4) Uniform Siting and Certification Process. The compact shall delineate two fully separate processes for siting and certification that will be mutually agreed upon by participating states. States shall have a uniform siting process and clear certification standards in order to join the compact. The process must define a clear start date for siting, certification, and permitting. The process also must clearly establish the responsible party for initiating the start date of the siting, certification, and permitting process. This will not only set a clear process at the state level of member states for siting, certification, and permitting for all relevant stakeholders but it will also ensure that stakeholders have a clear understanding and timeline to then start the process of obtaining federal approvals, permits, and certifications.

(5) Grid-Enhancing Technologies. States in the compact shall explicitly allow and streamline permitting and reviews for adopting innovative grid-enhancing technologies (GETs); tools that enhance existing transmission line capacity. GETs shall receive a fair market monetary valuation for the benefits that they provide at the discretion and agreement of the member states during any given transmission project’s bidding process. GETs have been estimated to have significant economic, operational, and reliability benefits and as a result should be considered as a monetary factor in any transmission developer’s bid.

(6) Open Bidding Process. To best promote interstate transmission development and minimize costs, an open bidding process shall be used. The Pelican Institute has found that open bidding for new development projects is a best practice to minimize ratepayer costs. This open process should consider benefits to ratepayers including, but not limited to: ensuring reliability, ratepayer cost savings, maximizing grid efficiency, reducing grid congestion, and mitigating against grid stressing events. The selection process for the moderator(s) of open bids shall be decided separately and entered into the compact.

(7) Elimination of Double Permitting. Transmission lines that have already been permitted by a member state shall not have to engage in a permitting process again when future upgrades, maintenance, or renovations are implemented.  Removing permitting barriers is one of the core ways to increase energy generation and transmission ability for our nation’s electric grid. As federal permitting processes are already too long and arduous, developers should not be forced to go through that process again if they were approved once already. Such onerous red tape will only further delay needed improvements or maintenance on existing transmission lines.