FERC has accepted SPP tariff revisions designed to increase study deposits for generator interconnection requests, add a nonrefundable application fee and clarify the process of evaluating modifications to requests.
In an order issued April 30 and effective May 1, the commission found the revisions will improve the efficiency of SPP’s GI request process, reduce administrative burdens for both the RTO and its interconnection customers, and clarify modification study procedures (ER24-1362).
“These revisions will contribute to increasing the overall efficiency of the generator interconnection process, which will help ensure that interconnection customers are able to interconnect to the transmission system in a reliable, efficient, transparent and timely manner,” FERC wrote.
SPP said processing costs to study proposals have averaged $7,100 per request and they have exceeded $10,000 per request for two of its three most recent study clusters. The RTO’s GI process has been plagued by developers filing requests to gauge costs or withdrawing those requests, leading to frequent restudies. Staff still are processing study clusters dating back to 2017; the queue numbered 1,139 requests for 221 GW when the backlog-clearing effort began.
The grid operator will increase the study deposits for new requests to align with the framework required by FERC Order 2023, which ranges from $35,000 to $250,000 depending on the generating facility’s size. Proposed projects of fewer than 80 MW will be responsible for a $35,000 deposit, plus an additional $1,000/MW. Replacement requests will pay $60,000 to $120,000, generating facility modification requests $10,000 to $60,000, and surplus interconnection service requests $15,000 to $60,000.
SPP said the proposed revisions will streamline the study process and reduce the financial exposure for itself and its members by increasing study deposits. It said requiring a $10,000 nonrefundable application fee for each interconnection request will mitigate the “significant” financial risk between the deposits and actual study costs.
FERC found that while SPP’s proposed application fee was double that established in Order 2023, the RTO had proved the new fee, to be adjusted every three years for inflation, “reasonably reflects” the costs to process interconnection requests before a cluster’s close.
The commission said while some tariff revisions deviated from FERC’s pro forma Large Generator Interconnection Procedures, SPP still demonstrated the proposed variations are just and reasonable.
