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Petitions for review of an FERC decision holding that the transmission of electricity be priced on the basis of the cost to American Electric of transmitting one more unit of electricity is denied where there is no economic basis for American Electric reflecting sunk costs in its rates and shifting the costs to other members as it did not expect when it built the facilities that any part of their cost would be defrayed by anyone besides its customers. Petition for review of the FERC's holding concerning the pricing of new facilities that have a capacity of 500 kilovolts or more is granted where the Commission failed to articulate how the new lines are enough of a benefit to justify the costs that it wants shifted to those utilities.
Petitions to Review Orders of the Federal Energy Regulatory Commission.
Argued April 13, 2009
Decided August 6, 2009
Before CUDAHY, POSNER, and TINDER, Circuit Judges.
Opinion by POSNER, Circuit Judge.
CUDAHY, Circuit Judge, concurring in part and dissenting in part.
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