FERC last week approved an uncontested partial settlement reached earlier this year among SPP, the Integrated System, MISO and Montana-Dakota Utilities.
The commission said its May 19 letter order resolves all seams issues raised by MDU stemming from the Integrated System members — the Western Area Power Administration-Upper Great Plains Region (Western-UGP), Basin Electric Power Cooperative and Heartland Consumers Power District — becoming transmission-owning members of SPP last October (ER14-2850-006, ER14-2851-006).
MDU said that by setting the seams issues for hearing, FERC recognized that utilities in the Integrated System area have highly integrated facilities “as a result of joint planning and ownership of transmission,” and that the arrangements should be reflected in their service arrangements with SPP (such as through transmission facilities credits under the RTO’s Tariff).
The settlement clarifies that MDU does not need to become an SPP transmission owner to receive credits in exchange for providing the RTO transmission service over its facilities. The value of MDU’s credits will be based on its annual transmission revenue requirement for the facilities in question under the MISO Tariff.
— Tom Kleckner
