By Chris O’Malley

Responding to a new round of objections by the transmission developer and independent power producer sectors, MISO management has reiterated its recommendation that $200 million in proposed out-of-cycle projects by Entergy be approved by the RTO.

“We continue to recommend approval by the board at the April meeting” of the six out-of-cycle projects, Jeffrey Webb, senior director of expansion planning, told the System Planning Committee of the Board of Directors on April 7.

The largest and most controversial of the out-of-cycle projects is $187 million in transmission improvements Entergy said are necessary to support a wave of new industrial development in the Lake Charles, La., region.

The committee took up the issue in March but stopped short of endorsing the Entergy projects despite a request to do so by Entergy Louisiana CEO Phillip May. (See MISO Board Questions Execs on Entergy Out-of-Cycle Requests.)

The full board has been invited to take part when the matter is discussed again by the committee on April 21. That is two days before the April 23 board meeting, when a final vote is expected.

MISO staff provided point-by-point rebuttals to written objections that dissenting sectors recently filed with the Planning Advisory Committee. The objections repeated complaints made earlier, challenging the certainty of Entergy’s load projections and questioning whether the projects were larger than needed to meet base reliability needs. They also alleged MISO failed to follow its Business Practices Manual, limiting opportunity for thorough stakeholder review.

In regard to the assertion that Entergy hasn’t provided sufficient evidence of underlying load projections, MISO staff insisted that nothing in the Tariff requires a load-serving entity to provide “verification and additional supporting documentation” for load projections.

MISO said Entergy’s growth projections are consistent with “widely publicized” projections of significant new industrial developments.

MISO’s Legal Obligations

System Planning Committee members inquired about MISO’s legal obligations in vetting out-of-cycle project requests. General Counsel Steve Kozey said MISO generally must make a good faith effort, but it is neither MISO’s nor the board’s role to litigate to a third party’s satisfaction.

Committee member Eugene Zeltmann pointed to comments filed by the Transmission Developer sector that suggested some transmission equipment included in the current out-of-cycle request was also part of a 2014 request, suggesting that it may be double-counted.

MISO staff replied that MISO staff did not double count that equipment and that it was distinct from earlier out-of-cycle projects.

Committee Chairman Michael Evans asked Webb to respond to concerns by some stakeholders that MISO did not provide adequate time for stakeholders to comment on the out-of-cycle requests.

Webb said an out-of-cycle request by its nature is necessarily “a compressed” time period but that staff abided by procedures.

Stakeholders Split

A stakeholder opposing the Entergy’s out-of-cycle requests was equally resolute.

“We continue to disagree with MISO staff,” said George Dawe of Duke-American Transmission Co., who represents the Competitive Transmission Developer sector.

He added that the process followed by the RTO “has called into question MISO’s credibility.”

But Lin Franks, senior strategist at Indianapolis Power & Light, countered that what Entergy has proposed is indeed a reliability project and that she doubted that board members wanted to be accused of causing delays leading to reliability problems.

“This is a reliability issue and not an economic one,” she said.