New England Power Pool Counsel Eric Runge delivered a memo to the Transmission Committee regarding FERC’s May 26 order approving recovery of costs related to compliance with NERC critical infrastructure protection (CIP) requirements for facilities designated as critical for the determination of interconnection reliability operating limits (IROL) (ER20-739).

The order approved the addition of Schedule 17 to ISO-NE’s Open Access Transmission Tariff with no modifications or further compliance requirements, effective March 6, as the RTO requested. (See FERC OKs Payment Rules for IROL Facilities.)

The cost recovery provisions apply primarily to generators but also to Cross Sound Cable or similarly situated transmission facilities designated as critical for determining IROL.

“More specifically, Schedule 17 provides for ISO-NE to act as a billing and payment agent for recovery of eligible costs of IROL-critical facilities that have filed with FERC and had accepted individual Section 205 cost recovery filings,” the memo said.

The primary issue of controversy in the proceeding was whether past IROL-related costs could be recovered, or whether their recovery would be barred by FERC’s filed-rate doctrine and rule against retroactive ratemaking, the memo said. The same issue had been considered by the TC in its discussions, and the RTO took a neutral position on it in the proceeding.

The commission also noted the preference of some parties for a formula rate treatment of IROL costs and stated that they “may seek formula rate treatment in their proposed [Federal Power Act] Section 205 filings,” according to Runge.

“We expect that some parties will file requests for rehearing on the past cost recovery issue,” the memo said. Any requests for rehearing are due 30 days from the date of the order.

Schedule 9 and Schedule 1 Rates

Mary Bimonte of Eversource Energy, chair of the Participating Transmission Owners Administrative Committee’s (PTO AC) Rates Work Group, presented Schedule 9 and Schedule 1 rates that became effective June 1.

The formula rates for Schedule 9 Regional Network Service (RNS) and Regional Schedule 1 Service have been updated to reflect actual data for 2019, forecasted data for 2020, and the annual true-up and associated interest, Bimonte’s report said. The resulting rates for RNS and Schedule 1 Service were included for stakeholder informational purposes.

The PTO AC approved the filing of the RNS and Schedule 1 rates at its June 11 meeting. An informational presentation will be made to NEPOOL stakeholders at the Reliability and Transmission committees’ joint summer meeting Aug. 18-19. The PTO AC will submit an annual informational filing to FERC on or before July 31.