FERC has approved MISO’s uncontested settlement for allocating costs among its members for the use of SPP’s grid.
The settlement covers the costs for transmission flows between MISO Midwest and MISO South in excess of 1,000 MW. It is based on an agreement the RTOs struck in early 2016.
The May 2 letter order accepts MISO’s proposal to allocate costs using a declining percentage through a load ratio calculation and an increasing amount through a flow-based benefits methodology (ER14-1736). (See “Cost Allocation Set in MISO-SPP Settlement,” MISO Market Subcommittee Briefs.) The allocation will be used from Feb. 1, 2016, to Jan. 31, 2021:
- Feb. 1, 2016 to Jan. 31, 2017: 45% load-based / 55% flow-based;
- Feb. 1, 2017 to Jan. 31, 2018: 40% load-based / 60% flow-based;
- Feb. 1, 2018 to Jan. 31, 2019: 27.5% load-based / 72.5% flow-based;
- Feb. 1, 2019 to Jan. 31, 2020: 17.5% load-based / 82.5% flow-based; and
- Feb. 1, 2020 to Jan. 31, 2021: 10% load-based / 90% flow-based.
While waiting on the order, MISO collected payments to SPP using a market ratio share method, and that status quo will stay in place for the funds collected from Jan. 29, 2014, to Jan. 31, 2016. MISO pays SPP $1.3 million per month, subject to true-up. Staff say MISO will begin resettling amounts collected after Jan. 31, 2016, once the allocation method was approved.
MISO filed the settlement package on Aug. 31, and a FERC administrative law judge certified it in October.
— Amanda Durish Cook
