December 24, 2024
Louisiana City Allowed RTO Tx Adder
FERC ruled that Alexandria, Louisiana is entitled to collect a MISO-related adder on top of its authorized ROE without having to make a request.

The city of Alexandria, La., is entitled to collect a MISO-related adder of 50 basis points on top of its authorized rate of return on equity without having to make a request to federal regulators, FERC ruled last week (EL15-75).

Alexandria, Louisiana in MISO (FERC)
Alexandria, Louisiana Skyline

The commission said Alexandria’s petition to implement the RTO membership adder was unnecessary because the city was already eligible to do so under MISO’s municipal generic template, a formula municipal transmission owners can use to derive their revenue requirements. FERC last June directed the RTO to include the adder, which became effective immediately (ER15-1067).

The commission also granted Alexandria’s request to defer adder collection until after a decision on an ongoing complaint against MISO transmission owners (EL14-12). In that proceeding, MISO transmission customers argue that the current 12.38% base return on equity earned by owners should be decreased to 9.15%.

— Amanda Durish Cook

Company NewsFERC & FederalLouisianaMISO

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