Compensation for Reactive Power Within the Standard Power Factor Range

In this final determination, the Federal Energy Regulatory Commission (Commission) finds that allowing transmission providers to charge transmission customers for a generating facility's provision of reactive power within the standard power factor range is unjust and unreasonable. The Commission, therefore, is revising Schedule 2 of its pro forma open-access transmission tariff (OATT), section 9.6.3 of its pro forma large generator interconnection agreement (LGIA), and section 1.8.2 of its pro forma small generator interconnection agreement (SGIA) to prohibit the inclusion in transmission rates of any charges related to the provision of reactive power within the standard power factor range by generating facilities.