By Amanda Durish Cook

Negotiations with MISO over the exchange of day-ahead firm flow entitlements “are proving to be more difficult than originally expected,” SPP told FERC in its third informational report on the RTOs’ market-to-market coordination (ER13-1864).

The RTO said it continues to review MISO and PJM’s new day-ahead FFE exchange process and collect daily data from MISO. However, “SPP’s experience with the real-time market-to-market coordination procedures and the ensuing negotiations with MISO to try to improve those procedures has reinforced SPP’s belief that it would be premature to implement a day-ahead firm flow entitlement exchange process at this time,” it told the commission. (See “Regions Begin FFE Exchanges,” MISO/PJM Joint and Common Market Meeting Briefs.)

SPP said it was concerned about the potential impacts on its transmission congestion rights markets. “SPP needs to be reasonably certain that the firm flow entitlements being exchanged will result in equitable and efficient operational and settlement outcomes,” it said.

The RTOs have fared little better on implementing interface bus pricing, SPP said. It attended preliminary analysis presentations given by both MISO and PJM and discussed the issue separately with staff members of each RTO. The results, SPP said, make it unsure that the PJM-MISO seam is comparable with SPP and MISO’s.

Instead, SPP said, the RTOs are planning a study that would examine interface consistency, gaming opportunities, equity concerns and flow issues. The study is expected to begin in September and wrap up by the end of the year.

Despite the apparent lack of progress, SPP said it was interested in continuing its analysis of the MISO-PJM processes and working with both RTOs.

SPP’s informational reports were mandated by FERC in a January 2015 order. Reports are due every six months until the RTOs reach an agreement.