By Chris O’Malley
CARMEL, Ind. — Over the objections of transmission developers and independent power producers, MISO’s Board of Directors voted unanimously Thursday to approve Entergy’s request for $217 million in out-of-cycle transmission projects.
There was no discussion by the board nor comments from stakeholders on the topic.
The outcome seemed all but certain following a unanimous vote Tuesday by MISO’s Board of Directors System Planning Committee to recommend that the full board approve Entergy’s requests.
Most of the opposition centered on the largest of the Entergy projects, a $187 million project to serve additional load in the Lake Charles, La. industrial zone in the midst of an economic revival.
Opposing stakeholders have alleged the increased load is speculative, that the project is beyond what is needed for a base reliability upgrade and that there was inadequate stakeholder review.
They also wanted a shot at competing for the project.
On Tuesday MISO staff outlined a checklist of steps taken that they say conforms with tariff and business practice manual procedures.
The bulk of the controversial Lake Charles project involves adding a 500 kV tap line that will extend seven miles to a new substation in Lake Charles, where Entergy said numerous industrial customers have committed to adding facilities.
MISO studied alternatives, including upgrading a 230 kV line and providing supply from more distant sources, but concluded they were less effective, said MISO Director of Planning Jeff Webb. “This is a straightforward, and I think ideal, solution,” Webb told the committee last week.
The committee pointed to an April 2 letter from Louisiana Public Service Commissioner Eric Skrmetta that expressed dissatisfaction with the review of the projects at MISO, calling on MISO to streamline the out-of-cycle approval process.
“Nothing should be permitted to interfere with the location of significant new load in southwest Louisiana and the economic benefits it will bring to the people of this state,” wrote Skrmetta. “…The consideration of these projects has gone on long enough. Second, numerous stakeholders have expressed dissatisfaction with MISO’s out-of-cycle consideration and approval process.”
Webb told the committee that MISO had 16 OOC projects last year and seven in 2013. Director Baljit “Bal” Dail, who is not a member of the committee but sat in on Tuesday’s meeting, asked Webb why Lake Charles was so controversial.
Webb cited the size of the project and said he recalled only one other controversial project over the years — also one of substantial size.
Clearly, large projects would be more lucrative for transmission developers hoping for a competitive project. MISO staff have maintained that Lake Charles is a reliability project, which would be ineligible for competition.
Board Chairman Judy Walsh — who substituted as chair of the meeting due to a medical issue involving chair Mike Evans — said the OOC process is designed to prevent MISO from becoming a “stumbling block” to needed reliability upgrades.
“In order for this process to work it has to be fast. It has to be efficient,” she said.
Earlier this month, in response to the controversy over Entergy’s request, MISO launched discussions that could lead to refinements in its procedures for handling out-of-cycle requests. (See MISO Seeks Stakeholder Input on Out-of-Cycle Process amid Entergy Controversy.)