In February, FERC issued Order 841, Electric Storage Participation in Markets Operated by Regional Transmission Organizations and Independent System Operators (the “Order”), requiring RTOs and ISOs to establish new market participation rules for energy storage that recognize the physical and operational characteristics of these resources. While the Order set forth some minimal requirements that
Appeals Court Sides with Wind Farm on PPA Risk Allocation
This week the Seventh Circuit Court of Appeals issued a decision that could help clarify the allocation of risk in power purchase agreements (PPAs). In Benton County Wind Farm LLC v. Duke Energy Indiana, Inc., the court settled a PPA dispute by concluding that the contract required the utility (Duke) to pay the wind…
MISO Transmission Owners’ Return on Equity Cut by FERC
Following a decision of the Federal Energy Regulatory Commission (FERC) released last week that cuts transmission owners’ return on equity (ROE) by more than 200 basis points, ratepayers in the Midcontinent Independent System Operator, Inc. (MISO) footprint will save an estimated $200 million per year.
Spurred by industrial customers’ challenge to MISO’s ROE rate in 2013, FERC ultimately found in its September 28, 2016 order that MISO’s ROE of 12.38% – which had been in place since 2002 – was unjust and unreasonable, and reset it to a base rate of 10.32%. Transmission owners may also qualify for transmission incentive ROE adders, although the maximum ROE rate may not exceed 11.35%. FERC also ordered that refunds be issued on a prospective basis for the period from November 12, 2013 through February 11, 2015.…
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MISO Proposes Interconnection Queue Reform To Address Continuing Delays
Midcontinent Independent System Operator (MISO) is proposing another round of interconnection queue reform. On December 31, 2015, MISO filed proposed revisions to its Open Access Transmission, Energy and Operating Reserve Markets Tariff with the Federal Energy Regulatory Commission (FERC). The revisions, which amend MISO’s Generator Interconnection Procedures, would be MISO’s fourth significant set of queue…
Minnesota Can Reliably Integrate 40% Renewables According to DOC Transmission Study
Yesterday, the Minnesota Department of Commerce issued its highly anticipated Minnesota Renewable Energy Integration and Transmission Study, which indicated that the “capacity for adding additional wind and solar up to 40% by 2030 can be reliably accommodated by the electric power system” (DOC press release here). The study stated that with relatively modest…
Ameren Should LOSE the Latest Battle Over Option 1 Network Upgrade Funding in the Midcontinent ISO Region
Ameren is dusting off a discriminatory method for interconnection customers to fund network upgrades in the Midcontinent ISO region, using two past victories in support of its campaign. But there are key differences between this dispute and those before it, and FERC should deny Ameren’s latest attempt to breathe life into the Option 1 funding that met its fate years ago.
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7th Circuit Affirms FERC’s Decision on Multi-Value Projects, Relying Heavily on Policy of Promoting Wind Development
From my colleague, Andrew Moratzka:
On June 7th, 2013, the United States Court of Appeals for the Seventh Circuit issued an opinion in Illinois Commerce Commission, et al., v. Federal Energy Regulatory Commission, affirming the Federal Energy Regulatory Commission’s approval of the Midcontinent Independent System Operator, Inc. (MISO) Multi-Value Project (MVP) tariff for…
Energy Storage in the MISO Footprint
Two new energy storage studies are getting underway this summer in the Midwest Independent System Operator (MISO) footprint: the Energy Storage Study and the Manitoba Hydro Wind Synergy Study. At MISO’s Energy Storage Workshop held on June 29, 2011, MISO explained that its goals are to explore the potential reliability, market, and planning benefits of…
Renewable Energy Law Alert: The Upper Midwest Reopens to Renewable Energy Development
Yesterday, December 16, 2010, the Federal Energy Regulatory Commission (FERC) conditionally approved a proposal by the Midwest Independent Transmission System Operator (MISO) that significantly changes how large transmission upgrades are funded across the MISO region.
MISO’s proposal creates a new category of transmission projects called Multi-Value Projects (MVPs) for upgrades that are determined to enable…
Midwest ISO Final MVP Cost Allocation Proposal Won’t Charge Generators for New Transmission Needed for Wind Energy
From our colleague Sarah Johnson Phillips:
Much to the relief of wind developers in the Midwest, the Midwest ISO has backed off a plan to charge new and existing generators 20% of the cost of new transmission needed to meet renewable energy development goals.
Yesterday, the Midwest ISO released its final cost allocation proposal, which it will file with the Federal Energy Regulatory Commission on July 15, 2010. In the final proposal, the cost of Multi-Value Projects (MVPs) will be spread evenly to load throughout the MISO footprint on an energy basis. MVPs are transmission projects needed to support renewable energy development, other policy drivers, or have multiple benefits such as reliability and market efficiency. Previous cost allocation proposals would have allocated 20% of the cost of MVPs to new and existing generators. That potential cost burden and resulting cost uncertainty had caused some wind industry observers to speculate that wind projects would abandon the Midwest for other parts of the country where transmission is cheaper.…
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