FERC said MISO can continue doling out refunds to Wisconsin utilities, upholding the RTO’s new cost allocation methodology for three system support resource power plants in Michigan’s Upper Peninsula (EL14-34, et al.).

The commission’s Sept. 22 order determined that MISO’s plan to refund load-serving entities overcharged under the old methodology was satisfactory, rejecting rehearing requests that argued the commission did not have the power to order refunds.

The order stems from 2014, when FERC ordered MISO to scrap its SSR cost allocation on a pro rata basis to all LSEs in the American Transmission Co. service territory and instead assign costs to LSEs that required the White Pine, Escanaba and Presque Isle plants for reliability. (See FERC Upends MISO’s SSR Cost Allocation Practice.)

FERC accepted MISO’s revised SSR cost allocation methodology in early May, and the RTO submitted its refund reports in June. The RTO will make the LSEs whole in 14 monthly installments, which began in July.

However, the commission instructed MISO to suspend refunds for the Presque Isle SSR costs until it reaches a decision on an administrative law judge’s finding that Michigan ratepayers were overcharged by Wisconsin Electric Power Co. (ER14-1242-006, et al.). (See ATC Plan Could Eliminate White Pine SSR; Refunds Coming on Presque Isle?) MISO will then have to submit another refund report for the plant within 45 days of the commission’s decision.

FERC also directed MISO to provide “complete, un-redacted” copies of the refund reports to parties that have entered nondisclosure agreements.

— Amanda Durish Cook