Could the U.K.’s Cap-and-Floor Model Unlock Interregional Tx in the U.S.?
The preliminary results of NERC's ITCS study show where it would make the most sense to build interregional transmission capacity. Using a price floor and price cap could help get these lines built, experts said on ACORE’s webinar. | NERC
Jan 20, 2026
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The United Kingdom has found success with a cap-and-floor model for transmission where interconnectors to other countries are guaranteed minimum revenues, but return earnings over the cap to customers.
Federal Energy Regulatory CommissionMarketsReliabilityResource AdequacyState and Local PolicyTransmission PlanningTransmission Rates
