By William Opalka

FERC on Thursday approved a settlement on financial terms for three transmission projects intended as contingencies for the potential closure of the Indian Point nuclear power plant in New York (ER15-572).

The letter order approved the cost allocation and return on equity for the Settlement Reached on New York TOTS Projects.)

Joining in the partial settlement were the state Public Service Commission, the Department of State Utility Intervention Unit, the New York Power Authority, New York City, the New York Association of Public Power, the Municipal Electric Utilities Association of New York and about 60 industrial, commercial and institutional energy consumers.

The commission judged the settlement, which was uncontested, as “fair and reasonable and in the public interest.”

It provides a total ROE of 10% for the TOTS projects, below the 10.6% base ROE the transmission owners originally sought. The agreement leaves intact the 50-basis-point adder granted by FERC, for costs up to $228 million.

Still pending in the docket are issues relating to the alternating current transmission projects that were first discussed in the state’s plans to address transmission needs in the New York City area. Those AC projects were split off by the New York Public Service Commission and settlement negotiations for them will resume in the coming months. (See NYPSC Directs NYISO to Seek Tx Bids.)