On Friday, March 30, 2012, the Federal Energy Regulatory Commission (the “Commission”) conditionally approved a proposal from the Midwest Independent System Operator (“MISO”) to change its generator interconnection queue procedures to address backlogs and late-state terminations of generation interconnection queue agreements (FERC Docket No. ER12-309-000).  The new procedures are effective January 1, 2012.  The reforms approved on Friday are MISO’s third set of significant queue reforms since 2008 as MISO has continued to shift its procedures for processing interconnection applications from a “first-come, first-served” approach to a “first-ready, first-served” approach.  

For developers, the most critical changes are the new cash-at-risk milestones required for projects to enter the Definitive Planning Phase and after execution of a Generator Interconnection Agreement (“GIA”).  The purpose of these new milestones is to require interconnection customers to put more money at risk earlier in the process so that projects that advance through MISO’s queue to the Definitive Planning Phase will be more likely to reach commercial operation.  Other important changes include revised timelines, new study procedures, and Net Zero Interconnection Service.

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