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Southern Company released two reports on November 1 focusing on critical issues facing the nation's electric transmission system. The Southern Company concluded that federal policymakers needed to pay more attention to the transmission system.
The first report, authored by the economics consulting firm Analysis Group/Economics, Inc., identifies and describes some of the key problems with traditional regulatory policies that are inhibiting investment in new transmission facilities and distorting location decisions by new generators.
On October 10, 2001, Allen Franklin, Southern Company's chairman, president and CEO, testified before Congress regarding the need to provide better transmission pricing signals to generators so that the plants are located closer to customers and in areas not requiring substantial new transmission investment. The problem presented is critical to Southern Company, as over 30,000 megawatts (MW) of new generation is proposed for Southern Company's service area. Southern Company says that the new generation is far greater than will be needed by area consumers and will be sold outside of the region, requiring major expansion of ...