FERC has denied a complaint by Missouri River Energy Services (MERS) that SPP violated its tariff by failing to give the utility any firm transmission rights in every annual allocation since 2016, resulting in more than $25 million in overcharges.  

In its June 27 order, the commission said Missouri River did not meet its burden to prove that SPP’s implementation of the allocation process violated the tariff, filed rate doctrine or two FERC orders or that the allocation process is unjust and unreasonable (EL24-3). 

MRES, an SPP load-serving entity, filed a complaint with FERC under several sections of the Federal Power Act. It alleged SPP violated its tariff, filed rate doctrine and commission Orders 681 and 890 by not awarding any long-term congestion rights (LTCRs) to the utility. MRES also claimed the RTO’s lack of transparency into its LTCR allocations violated the Energy Policy Act of 2005 and Order 890. 

The utility asked FERC to order SPP to refund the overcharge and allocate LTCRs from the date of the complaint. 

The commission found MRES did not identify specific tariff language it believed the grid operator had violated and said SPP’s tariff does not support its argument that the utility is entitled to receive its nominated LTCR allocation. It said the RTO didn’t deviate from its filed rate because the tariff’s LTCR process does not require it to allocate nominated rights. 

FERC also said Order 681 gives flexibility to grid operators in how they design their long-term FTRs and allows them to limit the amount available to ensure feasibility. It noted LSEs would not necessarily be able to obtain all of the long-term FTRs they request. 

“As an initial matter, we note that the commission accepted SPP’s LTCR tariff process, including how it determines feasibility and the amount of LTCRs to allocate, as compliant with Order 681,” FERC wrote. “Thus, the commission has already determined that SPP’s tariff meets the requirements of Order 681.” 

The commission said MRES did not support its allegation that SPP violated Order 890’s transparency requirements by not supplying the utility with certain data and calculations used in the LTCR allocation process. Instead, FERC found that Order 890’s transparency requirements do not require SPP to provide MRES with either the shift factor data or SPP’s specific software implementation of the simultaneous feasibility test. 

FERC pointed out that there are several reasons the LTCR allocation process could result in MRES not being allocated the congestion rights.  

“Contrary to Missouri River’s contention, the fact that Missouri River was not allocated LTCRs is not in and of itself proof of an implementation error,” the commission said.