MISO Files Entergy Transmission Cost Allocation Plan With FERC

The Midwest Independent Transmission System Operator (MISO), along with a group of its current transmission owners, and Entergy Arkansas have submitted a joint filing of revised tariff language to the Federal Energy Regulatory Commission (FERC) that allocates transmission costs upon Entergy’s integration into MISO. Additionally, Entergy Arkansas made a formal request to Arkansas regulators to join MISO.

FERC previously instructed MISO to resubmit its proposed transmission cost allocation as a change to its tariff, rather than as a waiver. MISO says its fundamental approach is not materially different.

Under the tariff change, existing MISO members will pay for projects that are under way or that benefit them exclusively. Entergy will pay for projects that benefit the company and its customers. MISO worked with stakeholders, including state regulators, for several weeks to have them review the tariff changes and incorporate their comments.

MISO’s transmission cost allocation plan seeks to ensure that Entergy only pays for projects that benefit Entergy customers and that current MISO members only pay for projects that benefit current members. The MISO proposal is designed to assign transmission costs roughly commensurate with benefits. MISO’s analysis provides that the addition of Entergy will provide benefits to all MISO participants.

“The majority of MISO transmission owners support the tenets of this filing, including standards for comparability, equitable cost allocation based on the principle that costs should be roughly commensurate with benefits, and preventing inappropriate cross-subsidization for either the existing MISO membership or Entergy,” says JoAnn Thompson, chair of the MISO Owners Committee.

Entergy Arkansas also submitted an official “change of control” request with the Arkansas Public Service Commission (APSC). In addition to Entergy Arkansas’ filing, MISO also filed for a certificate of convenience and necessity with the APSC. This is largely a procedural step that allows MISO to operate in the state of Arkansas.

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