The CAISO Board of Governors approved a tribal entity as a participating transmission owner for the first time Wednesday, welcoming the Morongo Band of Mission Indians to a small group that includes Pacific Gas and Electric and San Diego Gas & Electric.
The tribe, through its company Morongo Transmission LLC, sought status as a PTO for the West of Devers upgrade project managed by Southern California Edison. An eight-mile portion of the project crosses the Morongo Indian Reservation in a high desert pass between greater Los Angeles and the Palm Springs area.
“This will be the first federally recognized American Indian tribe to become a participating transmission owner,” CAISO CEO Elliot Mainzer said at Wednesday’s meeting. He called the move “very important and a milestone development” on a critical transmission project.
The deal allows Edison to remove and replace existing lines and substations and build new infrastructure on reservation land in exchange for the tribe participating with SCE in financing the project and reaping a share of the proceeds.
The upgrades are intended to bring abundant solar power from the Mojave Desert and Imperial Valley to greater Los Angeles.
“The project increases the transfer capability of the West of Devers transmission facilities by approximately 3,200 MW … as part of meeting California’s renewable goals,” Neil Millar, vice president of transmission planning and infrastructure development, told the governors.
By installing higher capacity conductors, the project will increase capacity from 1,600 to 4,800 MW, CAISO said. It involves rebuilding 48 corridor miles, or 184 circuit miles, of 220-kV line originally installed half a century ago. The project’s projected completion date is May 15.
Riddhi Ray, CAISO senior contracts negotiator, said Morongo Transmission LLC has filed a transmission owner tariff and revenue requirement for FERC approval, which CAISO staff expect to happen before the end of February.
“FERC’s acceptance of the filings is an express condition of accepting Morongo as a participating transmission owner,” Millar said in his memo to the board.
The exact financial terms of the plan were not discussed in Wednesday’s meeting or in supporting materials.
In an August 2016 decision, the California Public Utilities Commission approved a “proposed transaction providing Morongo Transmission with an option to invest up to $400 million [in prepaid rent] or half the estimated cost of the proposed project’s transmission facilities at the time of commercial operation in exchange for 30-year lease rights in the transfer capability.”
CAISO staff said the agreement between Edison and Morongo gives the tribe 61% of transfer capability on the line.
Tom Tureen, vice chair of Morongo Transmission LLC, said the agreement would finally treat the tribe fairly.
“Eminent domain is not available in Indian country, and the history of tribal-utility interaction has all too often not been a happy one for the tribes,” Tureen said. “For example, the most the Morongo Band received in any year during the prior 50 years for the original right of way for the West of Devers transmission line was $31.
“That the band and Edison were able to reach a ratepayer-neutral solution that avoided the added cost and delay of having to go around the reservation is really a testament to all involved and proof that it’s possible for tribes and utilities to find creative win-win solutions to seemingly intractable problems,” he said.
CAISO Board Chair Angelina Galiteva said, “It’s good to open opportunities like that to entities that haven’t traditionally been part of this process. … I think this is a welcome addition to the transmission owners and participants.”