FERC last week approved a settlement allowing independent transmission developer TransCanyon to collect a 9.8% base return on equity for any projects it builds under CAISO’s FERC Order 1000 competitive solicitation process (ER15-1682).
TransCanyon asked the commission last May for a 10.6% ROE if it were selected to build and operate a 115-mile, 500-kV transmission segment linking Southern California Edison’s Colorado River substation with Arizona Public Service’s Delaney substation. The commission set the request for hearing and settlement procedures in July 2015.
CAISO ultimately awarded the economically driven $300 million Delaney-Colorado River project to a joint venture between Abengoa and Starwood Energy.
Still, last week’s order will enable TransCanyon to incorporate the 9.8% ROE into its transmission owner tariff’s formula rate template — the basis for calculating a yearly transmission revenue requirement to be included in the ISO’s transmission access charge.
Participants in the settlement were SoCalEd; the cities of Anaheim, Azusa, Banning, Colton, Pasadena, Riverside and Santa Clara; the California Department of Water Resources; the M-S-R Public Power Agency; and Modesto Irrigation District.
TransCanyon is a joint venture between Berkshire Hathaway Energy, which owns PacifiCorp and NV Energy, and Pinnacle West Capital’s Bright Canyon Energy. Arizona Public Service is Pinnacle’s primary subsidiary.
— Robert Mullin
