FERC last week approved an uncontested settlement between SPP and several of its members to add an annual revenue requirement and implement a formula rate template and protocols for a new member (ER17-428).

The settlement resulted from SPP’s 2016 filing that amended its Tariff governing transmission facilities owned by Vermillion Light & Power (VLP). The changes concerned VLP’s base rate of return on equity, payment in lieu of taxes, plant depreciation rate, payment of refunds dating back to Feb. 1, 2017, with interest, and other related adjustments.

VLP, which is owned by the town of Vermillion, S.D., is a member of Missouri River Energy Services (MRES).

MRES and VLP said the settlement included three concessions: a 10-basis-point reduction from the as-filed base ROE of 9.7% to a settlement base ROE of 9.6%; an agreement that VLP is prohibited from seeking a change in the ROE until March 1, 2020; and a provision requiring VLP to make a Section 205 filing to participate in certain regionally cost-shared projects.

SPP filed the settlement offer in December on behalf of itself; MRES; Basin Electric Power Cooperative; East River Electric Power Cooperative; Heartland Consumers Power District; Mountrail-Williams Electric Cooperative; and the Western Area Power Administration.

Commission Approves NextEra Energy, KCC Settlement

FERC last week also approved an uncontested settlement between NextEra Energy Transmission Southwest (NEET Southwest) and the Kansas Corporation Commission over the company’s base ROE (ER16-2720).

FERC accepted NEET Southwest’s base ROE of 9.8% to recover costs associated with the transmission assets it develops in SPP. The company’s total ROE, including incentives and adders, will not exceed 10.8%.

NEET Southwest had requested a base ROE of 10.5% with a 50-basis-point incentive adder in 2016, but the Kansas commission protested the ROE portion of the filing.

— Tom Kleckner