Louisiana regulators on Wednesday shelved a vote that might have compelled Entergy Louisiana and Cleco Power to leave MISO for another grid operator.

The Louisiana Public Service Commission deferred an agenda item that could have required Entergy and Cleco to provide MISO a one-year notice of membership withdrawal. The potential vote was postponed to the commission’s Dec. 14 meeting and set off a tense exchange between PSC Chairman Craig Greene and Commissioner Eric Skrmetta.

Louisiana regulators in October said they would consider forcing their utilities to leave MISO if their ratepayers are forced to fund transmission built in the footprint’s northern reaches. Skrmetta was most vocal about the exit option. (See La. Regulators Threaten MISO Departure over Tx Costs.)

According to its membership agreement for transmission owners, MISO requires departing TOs to provide it with a year’s advance notice of their intent to exit the system.

Skrmetta said the delay gives the PSC time review MISO’s cost-allocation FERC filing for its long-range transmission plan.

The RTO has said it will create two separate but identical cost-allocation designs for its Midwest and South subregions that rely on a 100% postage stamp rate to load. But the grid operator also committed to conducting three-year reviews examining whether new Midwestern transmission benefits MISO South. (See MISO Schedules Cost-allocation FERC Filing.)

“The good news is there are alternative markets available if MISO does not prove to be [an] economic value to the citizens of the state,” Skrmetta said during the commission’s meeting Wednesday, referring to SPP or the new Southeastern Energy Exchange Market (SEEM).

The Entergy Regional State Committee recently hosted SPP staff and SEEM representatives for presentations on the organization’s membership. Louisiana regulators have considered both as alternatives to MISO, although staff has not embarked on a formal study. (See SPP, SEEM Woo Entergy Regulators at NARUC.)

Entergy has been part of the MISO grid since 2013. Its membership suspended a federal antitrust investigation into the utility.

Greene, Campbell Balk at MISO Divorce

The vote delay appeared in part because of Greene’s hesitation at Louisiana utilities forgoing MISO’s market savings. He acknowledged there’s currently a lot of “noise” around the RTO’s transmission-planning process.

“Participation in the MISO market has delivered hundreds of millions of dollars of benefits to [Louisiana] utility customers over the last seven years by expanding access to more resources,” he said. “The more resources available, the better for customers. I do not support walking away from an organized market that provides opportunities to attract private investment to the state.”

Greene also said the state hasn’t conducted a cost-benefit analysis “indicating we would somehow be better off without MISO.”

“So far, I think it’s universal that we all agree we want to get the best benefit and value for ratepayers. So far, I think it’s only Commissioner Skrmetta’s opinion that we should leave MISO, not the opinion of the public service commission, or at least of me,” Greene said.

“Speak for yourself,” Skrmetta retorted.

“Yeah, I think you have already,” Greene countered.

“Well, you’re doing a good job on your own. I’m your huckleberry,” Skrmetta said.

Greene noted that the commission’s concerns with MISO relate to transmission planning and cost allocation. He said he would wait until the grid operator made its cost allocation filing before rendering judgement.

“I look forward to that clarification and removing the uncertainty around this issue in December,” Greene said, adding later that it’s “pivotal” that Louisiana work with MISO on reliability and affordability.

Greene previously said an organized wholesale market is a “necessity” for Louisiana.

Commissioner Foster Campbell pointed out that ratepayers in his northern Louisiana district are expected to pay for Entergy’s storm recovery efforts in coastal and southern Louisiana. He drew parallels between that and MISO South bearing transmission costs from the Midwest.

“The argument is, ‘They’re doing something up north, and we’re paying for it down south,’” he said. “Let me remind you something … we’re paying for: all the storms we never have with Entergy. … We’re talking all of this about north and south. Sometimes that happens. … We pay like we were living in New Orleans.”

Campbell said he doesn’t support a break with MISO, just like he doesn’t advocate splitting Louisiana into separate cost zones.

“You all were bragging about how good it was last year. And this year, you all don’t have the religion. I don’t know what happened,” he told commission staff, referencing previous savings under MISO membership.

Skrmetta reminded commissioners that MISO is considering $130 billion worth of transmission projects.

“That’s a monumental element that would attack our rates in a way we’ve never seen,” he said. “So, we need to keep our eye on the issue; we need to keep our eye on what’s the best market for our public. It really is about the money.”

Entergy Louisiana spokesperson Brandon Scardigli said the utility remains satisfied with MISO membership.

“Since Entergy Louisiana became a member of MISO, our customers have realized significant cost savings and operational benefits associated with MISO membership,” he wrote in an emailed statement to RTO Insider. “We will continue to actively participate in the MISO stakeholder process to advocate for policies that ensure that our customers’ interests are protected and that they continue to receive a reasonable level of benefits from MISO membership.

“We also support the Louisiana PSC’s interest in continuing to monitor Entergy Louisiana’s participation in MISO to ensure that membership remains beneficial for our customers,” he said.