Baltimore Gas and Electric will pay $170,530 to MISO members to end a dispute over cross-system congestion costs under a settlement approved by FERC last week.
FERC’s Nov. 17 order settles a dispute between BGE and almost 30 MISO utilities relating to the cross-system congestion costs known as Seams Elimination Charge/Cost Adjustments/Assignments (SECA). FERC said the uncontested agreement represents “a final settlement of all SECA obligations.”
The settlement directs BGE to pay members of the RTO $344,665 and for the RTO to collect $174,135 from its members for BGE, for a net payment by BGE of $170,530. The approval closes out dockets ER05-6-124, EL04-135-126, EL02-111-145 and EL03-212-140.
The SECA cases originated from a 2002 FERC decision allowing American Electric Power, Commonwealth Edison and Dayton Power and Light to move from MISO to PJM. The move created areas in the RTO that were cut off from the rest of the footprint and led to rate pancaking and the eventual elimination of regional through-and-out rates.
FERC approved the 16-month SECA transitional payment mechanism for 2004-2006 and upheld SECA use in 2010, but it said SECA rates recovered from MISO and PJM transmission customers were subject to refund by MISO and PJM transmission owners. The 2010 decision imposed additional SECA liabilities on BGE. MISO laid out SECA amounts in 2013, charging BGE and about 15 other PJM load-serving entities a combined $4 million in SECA charges.
— Amanda Durish Cook
