FERC Urged to Act on Refunds Due to Con Edison, Linden VFT, LLC, Hudson Transmission Partners, LLC, and New York Power Authority

Strategic Insights -

The Consolidated Edison Company of New York, Inc., Linden VFT, LLC, Hudson Transmission Partners, LLC, and the New York Power Authority have jointly filed a motion with the Federal Energy Regulatory Commission (FERC) to enforce a holding from the D.C. Circuit Court of Appeals in their favor. The decision, reached nearly three years ago, found that the 1% de minimis threshold as applied to the New York entities was "unlawful" and that the Commission had not provided a reasonable explanation for applying a cost allocation methodology suited for "flow-based" projects to non-flow-based projects. The New York entities estimate they are owed over $175 million in refunds, inclusive of interest, which continues to accrue as the Commission remains inactive.

Key Takeaways:

  • The Consolidated Edison Company of New York, Inc., Linden VFT, LLC, Hudson Transmission Partners, LLC, and the New York Power Authority (New York Entities) have jointly filed a motion with the Federal Energy Regulatory Commission (FERC) to enforce a holding from the D.C. Circuit Court of Appeals.
  • The D.C. Circuit Court of Appeals found that the 1% de minimis threshold as applied to the New York entities was "unlawful" in the Consolidated Edison Company of New York, Inc. v. FERC decision (RTEP Decision).
  • The New York entities estimate they are owed over $175 million in refunds, inclusive of interest, which continues to accrue as the Commission remains inactive.
  • A separate complaint proceeding involving the Long Island Power Authority (LIPA) and Neptune Regional Transmission System, LLC (Neptune) has been resolved via a settlement, removing an obstacle to the Commission's consideration of the motion.
  • The motion was last updated on June 9, 2025.
  • The New York entities have been requesting the Commission to act on remand from the RTEP Decision for nearly three years.

Statistics:

  • The estimated total amount owed to the New York entities: over $175 million, inclusive of interest.
  • The time the Commission has remained inactive on remand: nearly three years.
  • The 1% de minimis threshold found to be "unlawful" in the RTEP Decision.
  • The number of agreements supporting the proposed settlement in the LIPA and Neptune proceeding: most of the PJM transmission owners.

Sources:

  • Docket No. EL15-18-000 PJM Interconnection, L.L.C. Consolidated Edison Company ) of New York, Inc. v. PJM Interconnection, L.L.C.
  • Docket No. EL15-67-000 PJM Interconnection, L.L.C. Linden VFT, LLC v. PJM Interconnection, L.L.C.
  • Docket No. EL17-68-000 PJM Interconnection, L.L.C. Linden VFT, LLC v. PJM Interconnection, L.L.C.
  • Docket Nos. ER17-725-000 ER17-725-001 ER17-725-002 ER17-725-003 PJM Interconnection, L.L.C.
  • ER17-950-000 ER17-950-001 ER17-950-002 ER17-950-003 PJM Interconnection, L.L.C.
  • Consolidated Edison Company of New York, Inc. v. FERC, 45 F.4th 265 (D.C. Cir. 2022).
  • Federal Power Act.
  • 18 C.F.R. § 385.212.