US FERC open to applications for Hurricane Katrina cost recovery

Washington (Platts)--13Sep2005

Although utilities pummeled by storms usually apply to state regulators
for cost recovery through rate cases, they also could apply to the US Federal
Energy Regulatory Commission to recover costs from restoring systems in the US
Gulf Coast region that were affected by Hurricane Katrina, Chairman Joseph
Kelliher told reporters Tuesday.
    "We will consider" any such application involving jurisdictional assets,
such as transmission, he said at a press briefing held during a media
breakfast co-sponsored by The Energy Daily and BP America.
    Kelliher said he has not received any indication any of the affected
utilities would apply for wholesale rate recovery at the federal level and
only suggested that FERC's door was open to an application. "I just don't want
to rule out the possibility," Kelliher said. He also noted that cost estimates
are not yet available. 
    After the briefing, Kelliher added that he expects the utilities to take
the traditional route for hurricane cost recovery with state regulators.

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