FERC has approved SPP’s request to change the frequency of its regional cost allocation review (RCAR) from every three years to every six, overruling member objections. The change became effective Oct. 1.

Sunflower Electric Power and Mid-Kansas Electric protested the tariff change, saying problems with the RCAR’s study assumptions, analysis and results made it unreasonable to decrease its frequency. The commission ruled their concerns as being out of scope (ER17-2229).

In their Sept. 29 order, commissioners said that while Sunflower and Mid-Kansas “may be correct that a relatively small change in transmission investment could have a large effect, that does not persuade us that conducting a mandatory review of the entire cost allocation methodology every six years instead of every three years is unjust and unreasonable.”

SPP and the commission both noted that any member that believes it has an imbalanced cost allocation can request relief through the RTO’s Markets and Operations Policy Committee. The RTO has also said it is trying to improve the review process by using more accurate information.

Stakeholders approved the Regional Allocation Review Task Force’s revision request in April, based on its recommendation that the change would save SPP manpower and consulting costs. (See “RSC Approves Six-Year Cost Allocation Review,” SPP Regional State Committee Briefs.)

The most recent regional cost review (RCAR II) showed more positive benefit-to-cost ratios and only one deficient transmission zone, which already has a project in the 2017 Integrated Transmission Planning assessment.

SPP said it took about 2,100 employee hours and more than $417,000 in payments to outside consultants to complete that review. The two RCARs have cost more than $1.5 million in outside consulting just to conduct the analysis, and each study has taken at least six months to complete, according to the RTO.

— Tom Kleckner