MISO ROE Litigants Ordered to Brief on Composite Methodology
FERCblog.com
by Paul Dumais
1y ago
There are two outstanding complaint proceedings involving the return on equity (ROE) of Midcontinent Independent System Operator, Inc.’s (MISO) transmission-owning members (MISO TOs) (Docket Nos. EL14-12-003 and EL15-45-000). FERC set these proceedings for hearing after it issued Opinion No. 531 in October 2014, concerning the ROE of the New England Transmission Owners (NETOS). In the order setting the first MISO proceeding for hearing, FERC stated that it expected to be guided by Opinion 531.  On October 16, 2018, FERC issued an Order in the NETO cases in which it proposed a new methodo ..read more
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FERC Revisits Transmission ROE Adder
FERCblog.com
by Paul Dumais
1y ago
On February 13, 2018, in Docket ER18-463, FERC denied a request by Ameren to implement a 100-basis point ROE adder/transmission rate incentive for the Illinois Rivers and Mark Twain components of the Grand Rivers Project in MISO. In March, Ameren requested rehearing of the FERC order. Previously, Ameren had received risk reducing incentives for the two projects, including 100% construction work in progress, abandoned plant, a hypothetical capital structure, and the authority to assign those incentives to affiliated entities. Ameren further requested the 100 basis point ROE adder, stating that ..read more
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Value of Transco Rate Incentive Trending Down
FERCblog.com
by Paul Dumais
1y ago
Consumers Energy Co., et al. filed a complaint in April 2018 in Docket EL18-140 against International Transmission Co. (ITC) alleging that the return on equity adders for independence (Transco Adder) of 50 or 100 basis points previously awarded to ITC companies have been rendered unjust and unreasonable by a recent Commission-authorized merger (ITC and Fortis).  By Order dated October 18, 2018, FERC reduced the Transco Adder for each of the ITC Companies to 25 basis points.  Commissioner Glick dissented as he believes the adder should be eliminated.  Both Commissioner LaFleur a ..read more
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FERC Orders New England To Brief On Transmission ROE
FERCblog.com
by Paul Dumais
1y ago
Currently there are four pending complaints against the New England Transmission Owner’s (NETOs) rate of return on equity (ROE) that date back to 2011.  Each complaint has been fully litigated before an Administrative Law Judge (ALJ) with only the first complaint resulting in a FERC Commission decision (Opinion No. 531). The D.C. Circuit Court of Appeals vacated the Commission’s determinations in its order on the First Complaint (Opinion No. 531). In the meantime, the NETOs are continuing to collect their 10.57% base ROE, although the Commission has indicated that it will exercise i ..read more
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Transmission Owners Prevail Shedding Doubt On FERC’s Refusal To Authorize Rate Of Return For Major Generator Interconnection Upgrade Projects
FERCblog.com
by Nicholas Cicale
1y ago
Transmission owners prevail shedding doubt on FERC’s refusal to authorize rate of return for major generator interconnection upgrade projects. On January 26, 2018, the D.C. Circuit Court of Appeals vacated and remanded five FERC orders that rejected Transmission Owners’ request to self-fund indirect interconnection upgrades of 345 kilovolts (kV) or greater (Network Upgrades), required to accommodate interconnection of a generator, seeking to interconnect directly elsewhere on the system. The immediate impact of the D.C. Circuit’s opinion in Ameren Services Company v. FERC (D.C. Cir. 2018)&nbs ..read more
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Virginia State Public Policy Mandating Underground Transmission Line Preference Affects Ratepayers
FERCblog.com
by Nicholas Cicale
1y ago
  Introduction Virginia state public policy mandating underground transmission line preference affects ratepayers. On October 19, 2017, FERC issued Opinion No. 555 pursuant to Parties’ exceptions to the Initial Decision in Old Dominion Electric Cooperative and North Carolina Electric Membership Corporation v. Virginia Electric and Power Company, 161 FERC ¶ 61,054, reversing the Administrative Law Judge’s determination as to the appropriate methodology for calculating Virginia Electric and Power Company’s (VEPCO) Incremental Underground Revenue Requirement (IURR). The origin of this dispu ..read more
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Rapid Timeline Stands for FERC to Take Final Action on Coal and Nuclear Pricing Rule
FERCblog.com
by Kimberly Osborne
1y ago
Rapid timeline stands for FERC to take final action on coal and nuclear pricing rule. October 10, 2017 marked the date of Federal Register publication of the Notice of Proposed Rulemaking (NOPR), wherein the Secretary of the Department of Energy (DOE) directs the Federal Energy Regulatory Commission (FERC) to issue a final rule requiring each independent system operator (ISO) and regional transmission organization (RTO) (collectively, “ISO/RTO”) to implement proposed energy price formation reform. Grid Resiliency Pricing Rule, 82 Fed. Reg. 46940 (Oct. 10, 2017) (to be codified at 18 C.F.R. pt ..read more
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MISO Order No. 1000 Project Authorized Transmission Rate Incentives
FERCblog.com
by Nicholas Cicale
1y ago
MISO Order No. 1000 Project authorized transmission rate incentives. On October 6, 2017, FERC granted Republic Transmission, LLC’s (a wholly owned subsidiary of LSP Transmission Holdings) (“Republic”) Petition for Declaratory Order seeking transmission rate incentives pursuant to Section 219 of the Federal Power Act (“FPA”) and Order No. 679. In MISO’s first competitive transmission solicitation pursuant to Order No. 1000, it selected Republic’s proposed 30-mile, single-circuit 345 kV transmission line extending from the Duff substation in southern Indiana to Big River Cooperative’s Coleman s ..read more
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Formal Challenge of Delmarva Power & Light’s Formula Rate Denied
FERCblog.com
by Nicholas Cicale
1y ago
Formal Challenge of Delmarva Power & Light’s formula rate denied. On September 20, 2017, FERC issued an order denying the Delaware Municipal Electric Corporation, Inc.’s (“DEMEC”) formal challenge of Delmarva Power & Light Company’s (“Delmarva”) formula rate. Delmarva is required to update its annual transmission revenue requirement (“ATRR”) on May 15th each year (Annual Update). “Attachments H-3D and H-3E of the PJM [Interconnection, L.L.C. (“PJM”) Open Access Transmission Tariff (“Tariff”)] sets forth Delmarva’s formula rate template and protocol[].” Delmarva Power & Light Compa ..read more
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FERC Finds Against New York in Millennium Pipeline Proceeding
FERCblog.com
by Nicholas Cicale
1y ago
FERC finds against New York in Millennium Pipeline proceeding. On September 15, 2017, FERC issued a declaratory order finding that the New State Department of Environmental Conservation (“NYDEC”) waived its water quality certification authority pursuant to section 401 of the Clean Water Act with respect to the Millennium Pipeline Company Valley Lateral Project. Millennium Pipeline Company, L.L.C., 160 FERC ¶ 61,065 (2017). Millennium Pipeline Company, L.L.C. (“Millennium”) initially submitted its application for the water quality certification in November 2015. NYDEC sat on Millennium’s appli ..read more
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