FERC last week clarified its December ruling ordering settlement procedures for new SPP member Central Power Electric Cooperative’s transmission service rates while denying a request for rehearing (ER16-209).
The commission’s December order accepted revisions to SPP’s Tariff that added a formula rate template and implementation protocols to recover revenue from the use of Central Power’s transmission facilities. FERC also established hearing and settlement procedures. The North Dakota utility became an SPP member on Jan. 1.
Otter Tail Power, a MISO member, filed a request for clarification and rehearing, which was supported by regulators in Minnesota, North Dakota and South Dakota.
The utility asked FERC to ensure all issues related to the Integrated System were included in the settlement proceeding. Otter Tail also asked for a rehearing of the commission’s decision not to address rate pancaking or to impose a hold-harmless condition as a result of Central Power joining SPP.
FERC agreed with Otter Tail’s and the state regulators’ separate requests for clarification, saying it intended to include in the settlement hearings “whether any service agreement provisions are needed to mitigate the impact of duplicative or pancaked rates on the integrated transmission system.”
However, the commission rejected the rehearing request over pancaked rates, asserting “separate inter-RTO transmission charges are consistent with commission precedent.” FERC said Otter Tail could address its concerns over credits for transmission facilities and having to pay for year-round SPP transmission service in the settlement procedures.
FERC also rejected Otter Tail’s argument that it had “erred” in dismissing a request for a hold-harmless condition, citing precedent in other cases.
— Tom Kleckner
