It is TAM’s position that the Legislature has not authorized entities that are not rate regulated by the Public Utilities Commission (PUC) to construct transmission outside of ERCOT. The PUC recently disagreed with this position and has ruled that the Legislature has authorized such entities to construct transmission outside of ERCOT. The issue revolves around whether the federal government (FERC) or Texas (PUC) regulates the construction and cost of transmission outside of ERCOT. This affects the Entergy, SPS, El Paso, and SWEPCO service areas. TAM’s concern is the lack of proper oversight and ceding jurisdiction to FERC, whose policy goals and rate setting process are often at odds with the goals and policies of Texas. TAM supports a look at whether entities that are not subject to full PUC regulation should be allowed to construct transmission outside of ERCOT.