By Tom Kleckner

LITTLE ROCK, Ark. — SPP’s Markets and Operations Policy Committee began discussions last week on how the RTO will distribute the funds it receives from MISO under the settlement in their long-running transmission dispute, announced just hours before its meeting.

MISO will pay SPP and six independent transmission owners $16 million to settle all claims of compensation from Jan. 29, 2014, to Jan. 31, 2016. SPP will receive 60% of the total, while the remaining 40% will be disbursed to the independent transmission owners. (See related story, SPP, MISO Reach Deal to End Transmission Dispute.)

David Kelley, SPP’s director of interregional relations, said that because the funds are not being collected under the Tariff, SPP will have to make a filing with FERC setting rules for its portion’s distribution to its members. Kelley said staff and parties to the settlement have determined that the payments should flow through to the benefit of SPP load.

“The money could start flowing in March 2016,” Kelley said. “We’ve had some conversations with members as a part of the settlement process, but we don’t have any provisions set up yet.”

Kelley said the majority of SPP transmission-owning members that were part of the settlement negotiations favor a 100% flow-based approach. Some stakeholders disagreed, suggesting a 100% load-ratio share approach or a 50-50 annual transmission revenue requirement/flow-based approach.

“We’re all in this together when it comes time to build transmission, but we seem to lose sight of that when it comes time to distribute the revenue,” said Dennis Florom of Lincoln Electric System.

Kelley said the general consensus is to develop a new settlement-specific Tariff schedule addressing revenue distribution. It would include a requirement that revenue be credited to benefit all customers taking SPP transmission service in the same manner in which point-to-point revenue is credited.

“We thought the revenues should be distributed on the same basis the service was granted,” Kelley said. “But this is a conversation we needed to have.”

He added, “I would not want to diminish what I think is a very significant victory.”

South Central MCN’s Noman Williams, chair of the MOPC, agreed.

“Let’s not lose sight of this victory by squabbling over who gets the dollars,” he said. “It all goes to the customers.”