FERC affirmed the ability of an independent transmission developer to include an RTO adder in its CAISO formula rate, rebuffing a request by the California Public Utilities Commission to reject the company’s use of the incentive.

FERC rejected PG&E's request for an adder to its transmission rates based on its participation in CAISO, finding that California law precludes it from leaving the ISO without the state’s permission.

FERC's technical conference highlighted gaps between the commission, state regulators and RTOs in their oversight of transmission planning.