MISO’s Board of Directors last week approved the 2015 Transmission Expansion Plan, which calls for $2.75 billion in spending on 345 projects through 2024.
Board member Michael Evans said MTEP15 was shaped by more than 40 pages of stakeholder comments. “I think it got a thorough vetting and we’re happy to see the level of interest from stakeholders,” he said.
MTEP15 includes MISO’s first competitively bid project, the Duff-Coleman 345-kV line in Southern Indiana. MISO will fund the $67.4 million cost of the Duff-Coleman portion while PJM be responsible for the $85.3 million needed for the double circuit 345-kV tie-in to Rockport.
Evans said MISO’s competitive bidding is “an impressive process, but it’s also a new process so I expect we’ll encounter some bumps along the way.” He assured the room that the bidding, which begins next month, will comply with FERC Order 1000.
Evans added the projects that “slipped” and didn’t make the final plan were typical of the process and won’t affect reliability.
“Lest we forget, the volume of work that goes into this is huge. Some 60 meetings were held over the last 18 months to get this thing done,” Evans said.
MISO South’s share of approved projects represents $1.4 billion, more than half of the total portfolio.
It includes the $122.5 million East Texas economic project, a 230-kV transmission line from Lewis Creek to a new 345/230-kV substation and the rebuild of the Newton Bulk-Leach 115-kV line.
Also of note in the plan are Louisiana’s $122 million Schriever to Bayou Vista 230-kV line, the $114 million New Plains-National 138-kV line in Upper Michigan and the $97.8 million construction of two 120/41.6-kV substations to serve load in Ann Arbor, home of the University of Michigan.
“There’s an awful lot of good stuff in there. When your Christmas gifts are wrapped, you might want to read it,” board member Judy Walsh said of the 429-page document.
“These investments in the region will continue to position MISO for future challenges and changes in the industry,” said CEO John R. Bear. “As our region grapples with the Clean Power Plan and a shifting generation portfolio, MISO’s transmission planning efforts are even more important. Ensuring a robust transmission system will allow us to meet these challenges in a way that protects reliability.”
With the addition of MTEP15, transmission investment in the footprint will increase to 863 projects totaling about $12.9 billion since 2003.
Board OKs 2016 Budget; MISO Overspends by a Slight Margin in 2015
MISO will exceed its 2015 budget by as much as 1.3%, the Board of Directors was told last Thursday.
As of October, MISO had operating expenses of $185.2 million, an overrun of $2.4 million, reported Tonya Brown, executive director of finance and corporate services. The RTO is projected to spend an extra $1.8 million to $2.8 million by year-end.
During the first 10 months of 2015, spending on capital expenses came in under budget by $1.6 million or 7.8%; MISO spent $19.1 million instead of the allotted $20.7 million. However, the grid operator is forecasted to spend $24 million to $24.2 million instead of the budgeted $23.5 million by the end of the year.
The board unanimously approved the 2016 spending plan, a $225 million operating budget and a $31 million capital budget.
Cash reserves are predicted to drop over the next five years, reducing the expected $79 million MISO will have at the end of this year to $13.5 million in 2019 before rebounding to $46 million in 2020. Factors contributing to the reduction are the conclusion of recovery of depreciation on ancillary markets and the 2016 start of principal payments on debt.
Board member Thomas Rainwater reported that MISO’s costs have grown at a compound average rate of 3% while load has increased 30% over the past decade.
New Board Members Elected
MISO’s board agreed to add two new members to its Board of Directors: former general manager of Pasadena Water and Power Phyllis Currie and former vice president of transmission operations for Pacific Gas and Electric Mark Johnson. Additionally, board member and former chairman and CEO of the Boston Stock Exchange Michael Curran was re-elected to another three-year term, and board member Eugene Zeltmann, whose term expired, announced he would not seek another term. With the new appointments, MISO’s board expands from seven to nine seats.
— Amanda Durish Cook
