This would allow for an improved system for retail customers. A Deutsche Bank representative could not be reached for comment. In theory, Trans-Elect's business plan is sound. By focusing exclusively on transmission lines, the company would be acquiring the one part of the power grid that is stable and consistently lucrative. Transmission lines between plants and distribution centers are essentially like a tollway.
Utilities charge generators a fee for the electricity carried.
Mitchell said Trans-Elect has told the Federal Energy Regulatory Commission, which has jurisdiction over electricity transmission, that it would not raise rates for at least five years after acquiring lines. After that time, he said, rates could go up as much as 3 percent to cover investment in new infrastructure. On Monday, the governor proposed creation of a state agency that might also purchase power lines as part of an effort to stabilize the state's energy system. It, too, would have authority to seek rate increases for investment in new infrastructure. He said Trans-Elect sent a letter to Davis this week outlining its proposal.