By Rich Heidorn Jr.

FERC on Thursday again ordered SPP to rewrite its rules on auction revenue rights (ARRs) and long-term congestion rights (LTCRs), saying the RTO’s proposed grandfathering provisions would “inappropriately extend practices that the commission finds unjust and unreasonable” (ER17-1575).

In a related order, the commission also rejected SPP’s proposal to provide ARRs and LTCRs to network service customers subject to redispatch on the same basis it provides them to customers not subject to redispatch (EL16-110). The commission ordered SPP to revise its Tariff to apply to network service customers subject to redispatch the same limitation on ARR and LTCR eligibility that the RTO currently applies to point-to-point service customers subject to redispatch.

SPP had drafted the Tariff language after the commission ordered a Section 206 inquiry in September 2016 in response to complaints by Southern Co., the American Wind Energy Association and the Wind Coalition. (See SPP Hopes Congestion Rights Rule Change Wins FERC OK.)

In Thursday’s orders, FERC approved SPP’s proposal to grandfather ARRs and LTCRs that have already been granted to network customers with service subject to redispatch. But the commission said it was not reasonable to extend the grandfathering provisions through July 15, 2017, as SPP had proposed as a transition to new ARR/LTCR eligibility rules.

SPP said it wanted to ensure that customers that contracted for network service subject to redispatch — service that is “confirmed” but has not commenced — remain eligible for ARRs for the full term of their service agreement.

The commission said that proposed revisions to section 34.6 of SPP’s Tariff were unjust and unreasonable because they would allow the RTO to provide ARRs and LTCRs to network service customers subject to redispatch while necessary transmission upgrades are constructed on the same basis it provides ARRs and LTCRs to firm transmission customers not subject to redispatch.

FERC said SPP must not allocate ARRs to customers with network service subject to redispatch on the same basis as firm transmission customers not subject to redispatch, “except for those times and amounts not subject to redispatch.” LTCRs also are barred for network customers subject to redispatch.

But the commission approved grandfathering ARRs and LTCRs already granted for network service subject to redispatch under the current language of section 34.6. “Allowing customers with network service subject to redispatch to retain their already-granted ARRs for the periods of time and the amounts of service subject to redispatch obligation and to retain their already-granted LTCRs, while preventing the future allocation of ARRs and LTCRs to such service on the same basis as firm transmission customers not subject to redispatch, appropriately balances the interests of network customers with service subject to redispatch who were granted ARRs and LTCRs based on SPP’s interpretation of its Tariff with the need to prevent ARRs and LTCRs from continuing to be awarded in an unjust and unreasonable and unduly discriminatory or preferential manner,” the commission said.

In related orders, FERC also:

• Clarified that its Sept. 23, 2016, order did not prevent customers from seeking relief or address any retroactive relief (ER16-1286-002, EL16-110-001);
• Rejected Southern Co. unit Alabama Power’s allegation that SPP violated its Tariff by treating customers with network service subject to redispatch as eligible to receive ARRs and LTCRs (EL17-11); and
• Rejected a complaint by Buffalo Dunes Wind Project asking the commission to order SPP not to allocate new ARRs or LTCRs to network service customers subject to redispatch for the 2017-2018 allocation year (EL17-69).