November 25, 2024
FERC Upholds MISO Cancellation of GIA
FERC ruled 3-1 that EDF Energy's Merricourt wind project had failed to meet the deadlines in MISO’s interconnection procedure.

By Amanda Durish Cook

EDF Renewable Energy wind farm similar to Merricourt Wind Project in MISOFERC has accepted MISO’s request to terminate a generator interconnection agreement (GIA) with EDF Renewable Energy’s 150-MW Merricourt wind project in North Dakota, eliminating the prospect the facility would be granted additional time in the interconnection queue before completing construction.

FERC said MISO’s interconnection policy is clear in denying such extensions unless a project’s development has been hindered by another project in the queue.

“No such circumstances are presented here, and, even if such circumstances were present, Merricourt could not extend its [commercial operation date more than] three years beyond the original COD,” the commission wrote (ER16-471).

Commissioner Cheryl LaFleur was the sole dissenter in the 3-1 ruling, citing worries that the decision could create barriers for other wind projects.

MISO revoked Merricourt’s GIA after the facility failed to meet a Dec. 1 deadline to begin commercial operations, despite a request to extend the term until Sept. 30, 2017. Merricourt maintained the project was eligible for such treatment because it had completed a significant amount of construction and was close to securing a long-term power purchase agreement. Development hit a snag in 2011 when Xcel Energy withdrew its PPA for the project, but Merricourt said it could bring the wind farm online by the end of this year.

FERC’s ruling pivoted on a narrow reading of the text within MISO’s GIA with Merricourt, particularly a provision permitting the developer to extend the in-service date after demonstrating “significant steps to maintain or restore operational readiness.” The commission ultimately agreed with MISO’s interpretation that the language only applies to a facility that has already begun — and then ceased — operating.

FERC added that keeping the wind project active could be unfair to other projects in the queue.

In her dissent, LaFleur focused instead on Merricourt’s progress with the project, which she said was so advanced that it would not cause harm to other project developers.

“In my view, our precedent provides the commission with clear authority to determine whether a COD extension is appropriate in a given case,” LaFleur wrote. “Here, I believe that Merricourt has both demonstrated meaningful progress towards reaching commercial operation in a reasonable timeframe … and effectively rebutted concerns expressed by MISO that the Merricourt project is speculative and potentially harmful to other customers in the queue.”

MISO has said that Merricourt is free to continue work on the project, which has so far cost about $20 million according to the developer. That will require it to re-enter the queue and obtain a new GIA.

FERC & FederalGeneration

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