FERC last week rejected four separate rehearing requests related to SPP’s revenue credits under Attachment Z of its tariff, reaching the same conclusion it did in a November order last year while also offering clarifications.
Oklahoma Gas & Electric (EL19-77), Western Farmers Electric Cooperative (EL19-93), Cimarron Windpower (EL19-96) and four renewable developers (EL19-75) asked for a rehearing of FERC’s previous ruling. The commission’s order partially granted complaints over SPP’s revenue-crediting process but rejected OG&E’s complaint. (See FERC Partially Grants Z2 Protests Against SPP.)
Citing the 2020 Allegheny Defense Project v. FERC decision that ruled the commission could no longer grant rehearing requests “for the limited purpose of further consideration,” FERC on Tuesday denied each of the requests “by operation of law.”
The commission modified its discussion in the OG&E docket and set the order aside, in part. The utility had argued that requiring it to refund revenue credits related to the use of its transmission facilities would violate Attachment Z2 and a sponsored upgrade agreement with SPP dating back to 2008.
Under Attachment Z2, SPP transmission customers that fund network upgrades can be reimbursed through transmission service requests, generator interconnections or upgrades that could not have been honored “but for” the upgrades. SPP had been trying to replace Z2 credits since 2016, when controversy arose after the grid operator identified eight years of retroactive credits and obligations that had to be resettled after staff failed to apply credits. (See SPP Invoices Lead to Confusion on Z2 Payments.)
FERC agreed with OG&E’s contention that SPP had violated Attachment Z2 during the historical period and that the commission erred in finding the utility had not raised this argument. It also found that, consistent with its findings in the other three proceedings, SPP violated the attachments, sponsored upgrade agreement and the filed rate doctrine.
The commission said even if SPP acted in good faith in implementing and administering Attachment Z2, the tariff violation may result in an outcome that is unjust and unreasonable and/or unduly discriminatory or preferential. It granted OG&E’s complaint in part “insofar as OG&E alleged” the violations.
However, FERC again denied OG&E’s requested remedy — that SPP refund Z2 revenue credits. It said the grid operator lacked revenue credits to provide as restitution and that those funds lie instead with the transmission customers that SPP’s tariff “excuses from credit payment obligations.”
BHE Renewables, Marshall Wind Energy and Grand Prairie Wind filed a limited request for clarification or a rehearing. The commission responded by explaining that it granted several parties’ late motions to intervene in the dockets, although it did not list them. It said it granted their interventions “given their interest … as demonstrated in their motions to intervene and the absence of undue prejudice or delay.”
“Because we grant intervenors’ request for clarification, we dismiss as moot their alternative request for rehearing,” FERC said.
