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EPSA Urges FERC to Reject MISO's Interim Interconnection Cost Proposal
EPSA Urges FERC to Reject MISO's Interim Interconnection Cost Proposal
"Regulatory and market certainty is critical to support the needed investment in the electricity industry... any long-term solution should be vetted through a robust, balanced stakeholder process to ensure companies that are funding important upgrades to the system are eligible to be fully compensated for those interconnection costs."
WASHINGTON, D.C. - The Electric Power Supply Association (EPSA) filed comments yesterday with the Federal Energy Regulatory Commission (FERC) on an interim proposal filed by the Midwest Independent Transmission System Operator (MISO) to revise its cost allocation methodologies on an interim basis with respect to network upgrades for generation interconnection projects. EPSA's comments state that MISO's one-year interim proposal will create a significant barrier to new generation during that interim period due to the uncertainty of longer term interconnection and development cost structures. Additionally, it is inappropriate for MISO to attempt to resolve a zone-specific concern by establishing a market-wide solution. Therefore, FERC should reject MISO's interim proposal and require a more specific solution both in the short and long terms. The one-year interim proposal was put forward to ameliorate the concerns of two western MISO transmission owners that have stated they will withdraw from the MISO market if changes are not made to protect them against costs related to expected extensive new generation interconnecting in their zones.
"Regulatory and market certainty is critical to support the needed investment in the electricity industry. While the concerns of some western MISO transmission owners merit attention, a one-year solution introduces an unacceptable level of uncertainty across the entire MISO footprint. Additionally, any long-term solution should be vetted through a robust, balanced stakeholder process to ensure companies that are funding important upgrades to the system are eligible to be fully compensated for those interconnection costs. This is consistent with FERC policy, and necessary to incent the development of needed new generation in the region."
In its comments, EPSA states that the interim proposal would also not alleviate all the concerns of the two MISO transmission owners as they would each face reliability and service issues to manage new intermittent energy interconnected to them as stand-alone transmission providers. EPSA urges the Commission to direct MISO "to work out a more localized settlement with the affected transmission owners and other affected stakeholders in that zone until a permanent solution can be established" across the RTO.
EPSA Protest Filing
CONTACT: JOHN SHELK
(202) 349-0154or 703-472-8660
EPSA is the national trade association representing competitive power suppliers, including generators and marketers. These suppliers, who account for nearly 40 percent of the installed generating capacity in the United States, provide reliable and competitively priced electricity from environmentally responsible facilities serving global power markets. EPSA seeks to bring the benefits of competition to all power customers.