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August 12, 2024

NYPSC OKs Municipal Aggregation for Energy Purchases

By William Opalka

ALBANY, N.Y. — The New York Public Service Commission voted 3-1 Wednesday to allow municipalities statewide to make bulk purchases of electricity and natural gas, including renewable power (14-M-0224).

Solar Farm (NYSERDA) NY PSC municipal aggregations
Community Solar Farm Source: NYSERDA

The Community Choice Aggregation program is part of the state’s Reforming the Energy Vision initiative to encourage the greater use of cleaner and distributed energy resources.

“The CCAs started in California and in Illinois and it was largely around aggregating supply,” NYPSC Chair Audrey Zibelman said. “I think the New York version is going to be much more about aggregating demand.”

By combining their purchasing power, communities can get the cleaner energy supplies they desire at a better price, she said. “I’m [as] excited about this element of REV as anything else we’re doing,” she added.

The commission, which started a proceeding to explore aggregation in December 2014, said CCA programs in other states have only been successful where opt-out aggregation is permitted for mass-market customers. “Opt-in aggregation has proved valuable to certain larger customer groups, but opt-out aggregation appears necessary for CCA programs to achieve the scale that will enable [energy service companies] to create meaningful benefits for mass market customers,” the commission said.

The program will be open to villages, towns and cities. Municipalities will be required to conduct a minimum two-month information and education program to potential CCA members, after which residents would have at least 30 days to respond to opt-out notifications.

Municipalities will be encouraged to design CCA programs that include integration of distributed energy resources and procurement of clean energy, both through direct procurement and opt-in programs for customers. “Since CCA programs are intended to promote greater consumer awareness and bill savings, they present a formidable opportunity to advance the state’s clean energy objectives,” the PSC said.

Municipalities that contract with energy service companies will be required to conduct open competitive processes, and contracts must “offer value to their residents through favorable pricing, significant clean energy in their energy supply portfolio or another commission-approved energy-related value-added product.”

The New York State Energy Research and Development Authority will provide technical assistance to participating communities.

Commissioner Diane Burman dissented from the order, saying she supports CCA but thought the state was moving too quickly. She said she wanted to learn first from Sustainable Westchester’s pilot program, which has not yet started. The program has 110,000 residents enrolled in 17 communities and is now mailing opt-out notices to residents.

Sustainable Westchester and a partner want to develop 10 MW of solar arrays in five locations.

“My concern is truly understanding what we’re doing in the pilot program and the lessons learned,” Burman said, adding that she feared “moving too quickly into a statewide application when we haven’t done or asked for real analysis.”

FERC to Consider Electric Utility Purchases of Gas Pipeline Capacity

By William Opalka

FERC will convene a technical conference May 9 to consider a proposal by New England officials that electric utilities purchase natural gas pipeline capacity (RP16-618).

MAP Access Northeast - gas pipeline capacity - electric utility purchases-fercThe commission said the conference would examine issues raised by Algonquin Gas Transmission’s Feb. 19 petition asking FERC to allow exemptions from its capacity release bidding requirements. The proposed changes to the company’s tariff would permit “prearranged releases” of firm capacity to utilities or generation owners. Algonquin, a unit of Spectra Energy, owns a network of pipelines in the Northeast that it is proposing to expand.

“Such tariff modifications are consistent with the commission’s current policy of exempting releases pursuant to state-regulated retail access programs of natural gas local distribution companies from bidding requirements,” Algonquin wrote. The company said the exemption is needed to increase the supply of available gas in periods of high demand.

Generators have protested the petition, saying the exemption would distort the secondary market for natural gas and depress electricity prices. Other protests note that “state-regulated electric reliability programs” referenced by Algonquin either do not yet exist or are on shaky legal ground. A plan by Massachusetts regulators that would allow electric distribution companies to recover costs from ratepayers was challenged by the attorney general and is before that state’s Supreme Judicial Court.

Kinder Morgan last week scrapped plans to develop a major pipeline into New England to help supply natural gas-fired power plants, citing a lack of commitments from electric generators due to regulatory uncertainty over their cost recovery. (See related story, Kinder Morgan Suspends Northeast Energy Direct Pipeline.)

The cancellation of Kinder Morgan’s project, and New York regulators’ decision last week to deny an environmental permit to the proposed Constitution Pipeline, may improve the fortunes of a third major pipeline expansion into New England, Algonquin Gas Transmission’s Access Northeast project. (See related story, New York Rejects Constitution Pipeline.)

Two electric utilities, Eversource Energy and National Grid, own a combined 60% of the project, which would provide fuel for 5,000 MW of generation. Spectra Energy’s Algonquin Gas Transmission owns the remaining 40%. (See Algonquin Submits Pre-Filing Request for Access Northeast Pipeline.)

PJM MRC and Members Committees Preview

Below is a summary of the issues scheduled to be brought to a vote at the Markets and Reliability and Members committees Thursday. Each item is listed by agenda number, description and projected time of discussion, followed by a summary of the issue and links to prior coverage in RTO Insider.

RTO Insider will be in Wilmington, Del., covering the discussions and votes. See next Tuesday’s newsletter for a full report.

Markets and Reliability Committee

2. PJM Manuals (9:10-9:30)

Members will be asked to endorse the following manual changes:

  1. Manual 19: Load Forecasting and Analysis. Revisions remove outdated rules for legacy air conditioner and water heater cycling programs and correct formulas for end-use/weather variables.
  2. Manual 12: Balancing Operations. Manual, Tariff and Operating Agreement changes incorporate business rules for dynamic transfers.

3. Governing Documents Enhancement and Clarification Subcommittee (GDECS) (9:30-9:40)

Changes eliminate redundant definitions and list definitions in alphabetical order.

4. Demand Response Emergency Energy Settlement Measurement and Verification (9:40-9:55)

New method changes the emergency energy default customer baseline (CBL) from the hour before to the current default economic CBL. (See “Members Endorse New Way to Measure Emergency DR,” PJM Market Implementation Briefs.)

5. External Capacity Performance Enhancements (9:55-10:15)

Members will be asked to endorse a problem statement and issue charge studying the challenges of the pseudo-tie construct for external CP resources.

Members Committee

Consent Agenda (1:20-1:25)

  1. Members will be asked to approve revisions to governing documents related to updated definitions developed by the GDECS.

Endorsements (1:25-1:55)

  1. Governing Documents Enhancements and Clarification Subcommittee (GDECS) (1:25-1:35)
  2. Members will consider revised definition of “capacity import limit.”
  3. See MRC item 3 above.

FERC Upholds Cost Allocation for Artificial Island, Bergen-Linden Projects

By Suzanne Herel

FERC on Friday approved the controversial cost allocation of two PJM projects: a stability fix for New Jersey’s Artificial Island nuclear complex and the Bergen-Linden Corridor upgrade.

Artificial Island Map (PJM) - FERC Cost Allocation - Bergen-Linden Projects“The courts have recognized that no cost allocation method can perfectly assign costs to the beneficiaries of a transmission project, particularly in the case of a transmission grid,” FERC said in its 3-1 order approving the Artificial Island allocation proposal (EL15-95. ER15-2563). “The commission found that where a cost allocation method is accurate in a very high percentage of circumstances to which it applies, then that is a strong indicator that the cost allocation method is just and reasonable.”

Commissioner Cheryl LaFleur dissented, saying, “The record in this case clearly establishes that there is a discrete and identifiable set of transmission projects as to which [the distribution factor cost allocation (DFAX)] methodology produces an anomalous result and does not allocate costs in a manner roughly commensurate with benefits.

“It is a cliché to observe that hard cases make bad law, but unfortunately I believe that is the result of today’s orders,” she said. “Because the instant cases are discrete and identifiable and have significant rate impacts that are not roughly commensurate with benefits, a failure to grant these complaints may actually undermine a cost allocation methodology that is just and reasonable in the vast majority of instances.”

The commission in November called for an inquiry in response to complaints over the allocation for the projects and held a technical conference on the issue in January. (See DFAX: ‘Poison Pill’ or ‘Best Method’ of Cost Allocation?) It asked: Is there a definable category of projects for which the DFAX method might not be appropriate, and could a fair approach be developed for those occasions?

Most commenters said that DFAX was inappropriate in some situations and that an alternative scheme should be developed. (See Commenters: DFAX Cost Allocation Inappropriate.)

The Delaware and Maryland public service commissions protested the cost allocation of the Artificial Island project, virtually all of which will be paid for by customers in the Delmarva transmission zone.

They cited a study requested of PJM by the Delaware commission that found only about 10%, or $17 million, of the $169 million annual load payment savings would accrue to customers in that zone. However, those customers will be allocated about $246 million of the costs.

Critics said DFAX is inappropriate for non-flow-based fixes, such as those addressing short-circuit violations, storm-hardening or stability limits.

Said FERC: “Comments opposing the solution-based DFAX method can only point to two projects out of over 1,200 identified by PJM as raising concerns.”

The DFAX method, the commission said, “focuses on the benefits of the facility as measured through use of the facility over time rather than the reliability violation that drove the immediate need for the project.”

In the second ruling — in which LaFleur also dissented — FERC denied a complaint from Consolidated Edison and Linden VFT and upheld the assignment of an additional $91 million in cost to Con Edison for the Bergen-Linden Corridor project (ER15-2562, et al.).

“As PJM explains, the costs related to the reconfiguration are necessary to address construction challenges and the elimination of high short-circuit current issues identified by [Public Service Enterprise Group], such as no longer reusing existing underground ducts to install new 345-kV cables and substation expansion for an additional 345-kV line,” the commission said. (See Developer Questions Need for PSE&G Projects without ‘Wheel’.)

Meanwhile, the Artificial Island project faces other hurdles. After Public Service Electric and Gas submitted estimates that nearly doubled the cost of its scope of work to $272 million, PJM planners are considering reconfiguring the project.

That, however, could alter its scope enough to require it be rebid under Order 1000. (See Artificial Island Cost Increase Could Lead to Rebid.)

The Delaware PSC did not return a request for comment. However, Bob Howatt, the PSC’s executive director, told The News Journal that the PSC is considering filing a motion for rehearing with FERC as a prerequisite for a court appeal. “The court process is not inexpensive,” Howatt cautioned.

Delaware Public Advocate David Bonar has estimated that Artificial Island could result in rate increases of about $3/month for residential and small businesses, while increasing rates for large manufacturers by “tens of thousands.”

State Briefs

Some Alternate Supplier Electric Customers Paying More

The state’s Office of Consumer Counsel says thousands of residential customers who signed up with competitive electric suppliers paid more for power than customers who stayed with the standard offers from Eversource Energy or United Illuminating.

EversourceSourceEversourceIn Eversource’s territory, customers with 18 of the 28 third-party service providers paid $48 million more than the standard offer. In UI’s service area, customers with 18 of 29 competitive suppliers paid $10 million more than standard-offer customers.

Bryan Lee, a spokesman for the Retail Energy Supply Association, said the consumer advocate “is making an unfair apples-to-oranges comparison when it compares a ‘plain vanilla’ utility standard service electricity rates with the varied and complex product offerings of competitive retail energy suppliers.”

More: New Haven Register

NEW JERSEY

BL England Generating Station Looking to Convert to Gas

BLEnglandSourceWikiThe owners of the coal-fired B.L. England Generating Station have applied to the Department of Environmental Protection for emissions permits to convert the plant to natural gas, now that a controversial pipeline to the facility has been approved.

“It’s probably the dirtiest plant left in the state,” DEP spokesman Larry Hajna said, adding that the 52-year-old plant is one of “just a handful” that still burn coal. The plant on the Jersey Shore is owned by RC Cape May Holdings, a special purpose entity formed by Rockland Capital, Energy Investors Funds and other investors.

Environmentalists are protesting the conversion. They say the 447-MW upgraded plant actually would increase pollution because the gas-fired plant would operate daily, while only one of the plant’s current coal units is active, and it only operates 60 days a year.

More: The Press of Atlantic City

NEW MEXICO

State Sees Rush of Solar Tax Credit Applications

Energy conservation officials have been hit with a flood of applications for the state’s solar tax credit and are on track to meet the $3 million annual cap by July.

This is the last year for the state’s 10% tax credit. A measure calling for extending the incentive through 2024 stalled during the last legislative session.

More: The Associated Press

NEW YORK

Cuomo Announces $150M For Renewables Projects

NYGovCuomoSourcegov
Cuomo

Gov. Andrew Cuomo on Thursday announced $150 million in funding to support large-scale renewable energy projects across the state to help meet the goal of 50% of electricity from renewable energy by 2030.

“This state is a national leader in combating climate change, and with this investment, we are taking our unprecedented efforts one more step toward a cleaner and greener New York,” he said. “This funding will advance large-scale energy projects, continue build[ing] a clean energy economy and generate opportunity for New Yorkers for generations to come.”

Support will be provided by the New York State Energy Research and Development Authority in its final solicitation through the main tier of the state’s renewable portfolio standard.

More: Gov. Andrew Cuomo

Microgrid Competition Offers $8 Million

The next round of the NY Prize microgrid competition will provide $8 million in awards for engineering designs and business plans for community microgrids, Gov. Andrew Cuomo said.

The $40 million program is part of the Reforming the Energy Vision. The NY Prize engineering design and business plan component will award up to $1 million to each of the eight winners. The deadline for proposals is Oct. 13, 2016. The competition is administered by the New York State Energy Research and Development Authority, which is currently reviewing final reports and conducting an analysis and evaluation of the feasibility studies.

More: Gov. Andrew Cuomo

Study Says Preserved Nuclear Plants Cost-effective

BrattleGroupSourceBrattlePreserving upstate nuclear plants via a proposed Clean Energy Standard provides benefits that exceed the costs, according to an analysis by The Brattle Group for the Public Service Commission. (See NYPSC: Minimal Cost to Meet 50% Renewable Goal.)

The nuclear component of the Clean Energy Standard is responsible for more than 50% of the program’s lifetime financial benefits from carbon avoidance, despite incurring only 21% of the program’s overall costs. Power cost savings enables an additional $3.16 billion in annual gross domestic product, according to the study.

The report was prepared for the New York State IBEW Utility Labor Council, the Rochester Building and Construction Trades Council and the Central and Northern New York Building and Construction Trades Council.

More: The Brattle Group

NORTH CAROLINA

Regulators Side with Duke in NC WARN-Church Solar Deal

NCWARNSourceNCWARNThe Utilities Commission fined an advocacy group $60,000 for violating state law by installing a solar array on the roof of a Greensboro church and then selling the electricity directly to the church. The commission said NC WARN, by law, should have produced the power, sold it to Duke Energy, which then would have sold it to the church.

The commission said NC WARN’s direct contract with the church was impermissible because the church is located within Duke’s exclusive service area. “NC WARN knowingly entered into a contract to sell electricity in a franchised area and sold electricity without prior permission from the commission, subjecting itself to sanctions,” the commission said. It ordered the group to stop operating the solar array and to turn it over to the church.

NC WARN Director Jim Warren vowed to appeal. “The decision to impose the fine is pretty surprising,” he said. “In the past, that kind of fine has been used against outright lawbreakers.” He said the arrangement was made to test the law on electricity sales.

More: Charlotte Business Journal

Health Officials Go Silent on Safety Guidance near Ash Ponds

NCHealthandHSSourceGovThe Department of Health and Human Services says it has stopped offering any guidance to owners of drinking-water wells near Duke Energy coal ash ponds, citing pending legislative action that would govern water testing and advisories.

“We are carefully monitoring this proposed legislation and are not able to comment further on safety recommendations until the General Assembly takes action,” a department spokeswoman wrote in an email.

The department last year issued do-not-drink notices to owners of hundreds of wells near coal ash basins because their water contained elevated levels of hexavalent chromium, but it recently notified the landowners the water was safe to drink. There are no federal or state standards for hexavalent chromium. Lawmakers say the pending legislation will clear up any confusion. “They scared these folks erroneously,” Rep. Pat McElraft said. “Everybody thought Duke was poisoning them when they weren’t.”

More: WRAL

OHIO

Supreme Court Upholds Part of 2012 AEP Rate Case

AEPOhioSourceAEPThe state Supreme Court upheld most of American Electric Power’s 2012 rate increase, remanding part of the case to the Public Utilities Commission to review if customers should receive any refunds.

The court ruled that PUCO was correct when it approved AEP’s special “capacity charge” to make the utility whole during its transition to market-based pricing.

But the court also ruled that a portion of the rate increase was a de facto “transition charge” that added up to $508 million. Some of that, it said, could be improper.

More: The Columbus Dispatch

PENNSYLVANIA

PUC Member Leaving To Take Utility Job

PamelaWitmerSourceGov
Witmer

Public Utility Commissioner Pamela A. Witmer is leaving the commission at the end of April to become vice president of government affairs at UGI Energy Services, a company that comes under the commission’s regulation.

Witmer’s five-year term ended on April 1. A Republican who was appointed by Gov. Tom Corbett in 2011, her departure leaves an important vacancy on the commission, now split evenly between Democrats and Republicans. Democratic Gov. Tom Wolf has yet to nominate a replacement.

More: The Philadelphia Inquirer

Steam Heat Plants Come Under Scrutiny

The Public Utility Commission wants to focus greater scrutiny on the state’s three public steam heat plants.

The plants produce and deliver steam heat through pipes to business districts in Philadelphia, Harrisburg and the North Shore of Pittsburgh.

Citing the risk for accidents and a thin oversight staff at the plants, the PUC is releasing proposed regulations that will call for more inspections and reporting of steam leaks and emergencies.

More: Pittsburgh Post-Gazette

TEXAS

Hunt Group Asks for Rehearing in Oncor Purchase

OncorSourceOncorThe Hunt Group, the would-be buyers of Oncor, are trying to change the terms of a contentious agreement it hammered out only a month ago with the Public Utility Commission. The request for a rehearing offered a bleak assessment of the sale going through.

Minutes after the Hunt Group filed a formal request for a rehearing, PUC staff filed a statement that said the group’s separate application for a rate-setting procedure failed to meet legal requirements necessary to allow the sale to go forward. Legal deadlines loom that could make it difficult to close the purchase. The commission will meet to consider the rehearing on May 4.

The buyers want to split Oncor into two linked companies that could take advantage of a $250 million federal tax break.

More: The Dallas Morning News

Fort Worth to Oncor: Defend Your Rates

The Fort Worth City Council unanimously approved a resolution directing Oncor to explain why its electric transmission and distribution rates should not decrease if its federal tax bill drops under its bankruptcy reorganization plan.

The resolution stems from last month’s approval by the state Public Utility Commission of the Hunt Group’s $18 billion acquisition of Oncor. The PUC last month deferred a decision on the rate question until 2017 at the earliest.

More: Star-Telegram

VIRGINIA

First Commercial Wind Farm Would Top North Mountain

ApexSourceApexApex Clean Energy is applying to site 25 wind turbines atop North Mountain in Botetourt County in what would be the state’s first commercial wind farm.

The Department of Environmental Quality has expressed support for the project, though opponents worry that the 550-foot-tall towers and rotating blades might kill birds and bats or contribute to erosion that would contaminate streams.

More: The Roanoke Times

Richmond Opposes FERC Permit for James River Hydro

The city of Richmond is fighting a company’s attempt to install an 8-MW hydroelectric project at Bosher’s Dam on the James River, saying the generator’s intakes could interfere with fish migration.

Energy Resources USA has filed a request with FERC to give it “priority of licensing” for the hydro project but is not yet seeking a construction permit. It is proposing to divert water at the existing dam through four 2-MW turbines.

The city said the hydro project’s proximity to a fishway might impair fish migration. “The documentation shows the intake for the facility immediately upstream of the ladder, which will adversely impact the function of the ladder,” wrote Patrick Bradley, the city’s water quality manager. “Also, the facility will effectively cut off access to the ladder for operation and maintenance purposes.”

More: Richmond Times-Dispatch

MISO Queue Changes on Hold Pending Technical Conference

By Amanda Durish Cook

MISO is postponing a second attempt at changing its generator interconnection queue rules while it assesses FERC feedback and awaits input from a commission technical conference next month.

The RTO will participate in the conference, set for May 13 (RM16-12, RM15-21).

“MISO still believes that reforms to the interconnection queue process are necessary to adapt to a rapidly evolving generation fleet, and we look forward to further discussions with FERC and stakeholders to move this process forward,” the RTO said in an update to the Planning Advisory Committee. (See MISO Unveils Queue Rule Transition as Wind Advocates Seek Delay.)

ferc, miso interconnection queue

FERC last month rejected MISO’s proposed queue changes, saying they assumed the current backlog could be blamed on “speculative” projects and “fail[ed] to consider other potential factors” (ER16-675). Those factors included the timeliness of MISO’s queue processing and its coordination with neighboring RTOs. The commission also said a proposed milestone payment could create barriers to entry for smaller developers.

“We’re free to file again, anytime we want, but we have to address the concerns FERC has,” said Tim Aliff, MISO director of interconnection and planning.

Aliff said MISO’s Interconnection Process Task Force will survey stakeholders to determine which parts of the queue plan are salvageable. He also said some new processes — such as providing interconnection customers with models ahead of the queue entrance — might be included.

MISO also is planning a filing to comply with a FERC order requiring the RTO to charge uniform milestone payments to all external, internal and existing customers. (See FERC Orders MISO to Charge Uniform Interconnection Fees.) Aliff said that filing will be made separately from the revised queue filing.

FERC Stands by Denial of Polar Vortex Make-Whole Payments

FERC last week reiterated its 2015 order rejecting New Jersey Energy Associates’ request for recovery of costs incurred during the polar vortex of January 2014. Natural Gas Price Volatility (Monitoring Analytics) FERC polar vortex

NJEA, which owns the 290-MW South River combined cycle plant, said it was forced to sell natural gas at a loss of $1.3 million after PJM repeatedly canceled the plant’s scheduled start time.

FERC denied the company’s request for a waiver that would have allowed PJM to reimburse it, citing rules against retroactive ratemaking (ER15-952). (See FERC Again Denies Polar Vortex Make-Whole Payments.)

In its ruling Thursday, FERC said that NJEA’s request for clarification and rehearing was asking the commission for the first time to interpret the phrase “actual costs incurred.”

“NJEA’s request is beyond the scope of its original waiver request and [is] inappropriately raised for the first time in a request for clarification and rehearing of the Sept. 4 order,” it said.

– Suzanne Herel

MISO Planning Subcommittee Briefs

Advancements in energy storage are prompting MISO to expand its definition of non-transmission alternatives to include a new category: non-traditional transmission alternatives.

Storage behaves like transmission in several ways, Matt Tackett, MISO principal, told the Planning Subcommittee during an April 19 meeting.

“We started to realize that we’re struggling because we’re trying to make this thing too broad,” Tackett said. “We need to compartmentalize. Trying to force everything into one bucket is counterproductive.”

Non-transmission planning work is still in a “conceptual stage,” and a storage battery could be categorized as either a non-transmission alternative or a non-traditional alternative depending on how it solves a transmission issue.

MISO will seek stakeholder feedback on the issue until May 20. (See “MISO: More Time Needed to Refine Non-Transmission Alternatives Process,” MISO Planning Subcommittee Briefs.)

MISO to Revise Transmission Service Requests for Pseudo-Ties

MISO plans to revise the requirements for pseudo-tied resources to prevent them from generating without transmission rights, said Ankit Pahwa, MISO senior transmission planning engineer.

Pahwa said MISO is concerned that pseudo-tied resources might let their transmission rights expire continuing to import or export power. The RTO is proposing to add language to transmission service requests specifying that transmission rights be firm, point-to-point and maintained for the life of a pseudo-tie.

“What we’re saying is you have to maintain that transmission right to continue pseudo-tying out of MISO,” Pahwa said.

Additionally, MISO is considering performing system impact studies for all such transmission service requests. The RTO currently performs such studies only for pseudo-ties lasting longer than 18 months.

The proposed changes are part of a recent Planning Advisory Committee directive to “appropriately capture pseudo-tie impacts to MISO’s transmission system.”

MISO Questions Need for Transient Stability Analyses in MTEP

A new MISO white paper questions the need for completing a yearly long-term transient stability analysis as part of MISO’s Transmission Expansion Planning (MTEP) process.

Long Term MTEP Study Scope (MISO) - planning subcommittee briefsThe analysis models the dynamics and power flow of the entire system to provide insight into how the grid can return to stability after a significant disturbance, such as the loss of a generator.

A 10-year study during each planning cycle would satisfy NERC and MISO’s long-term planning horizon requirements, but MISO is wondering if it is necessary.

“The question is: Do you or do you not have to run the 10-year-out summer peak transient stability study?” Pat Jehring, of MISO’s planning expansion department, asked stakeholders.

According to Jehring, the RTO could conduct a long-term study using a broad approach — where the scope is widened to include all modeling changes and how they could affect the system — or a narrower interpretation of such changes. Jehring said MISO took the narrower approach with MTEP15 to save time. The RTO might now follow the broader option for MTEP16, with the analysis accounting for the impact of transmission, load changes and dispatch changes on the system.

Jehring said transmission owners have varying opinions about whether a long-term transient stability analysis would be needed for every MTEP.

Will Kenney, also with the planning expansion department, provided insight into the preliminary MTEP16 voltage stability scope, which identifies future reliability risks to MISO’s system.

Kenney said the MTEP16 scope will model a 2021 summer power flow and a shoulder power flow that assumes a 40% wind power contribution. The RTO will evaluate eight transfer paths during the 2021 summer peak, adding new analysis on the impact of eastbound transfers from Ameren Missouri and Ameren Illinois that sink in American Electric Power’s territory. Analysis of the U.S.-Canada interface will model a winter peak to examine transfers from Manitoba to the U.S. portion of MISO North.

The full scope of the voltage study will be presented at June’s Planning Subcommittee meeting, according to Kenney. The project should be completed in time for the board’s approval of the MTEP in December, he said.

— Amanda Durish Cook

FERC Consolidates Duke ROE Complaints, Sets Hearings

FERC consolidated and set for hearing two return-on-equity complaints filed against Duke Energy Carolinas and Duke Energy Progress by overlapping complainants.

The complaint against Duke Carolinas argue that the current 10.2% ROE exceeds the company’s current cost of equity and should be set no higher than 8.49% (EL16-29). Similarly, the complaint against Duke Progress said its 10.8% base ROE should be set no higher than 8.49% (EL16-30).

FERC also established a refund effective date of Jan. 7, 2016.

– Suzanne Herel

MISO, SPP Disagree on 2016 Joint Study

By Amanda Durish Cook

MISO staff are recommending that two joint MISO-SPP committees not develop a coordinated system plan study this year, advising the groups to instead focus on improving their processes.

SPP's Seams with MISO (ACES) Joint Study“MISO is hoping to focus on improving the process for coordinated studies prior to embarking on our next study,” MISO spokesperson Andy Schonert said following last week’s Planning Advisory Committee meeting. He said MISO wants to “take a step back” before proceeding.

MISO said it would review stakeholder input on the recommendation before putting the issue to a final vote.

SPP’s Seams Steering Committee voted earlier this month in favor of producing a coordinated study after discussion with representatives from the RTOs’ Interregional Planning Stakeholder Advisory Committee.

“The overwhelming consensus was that there is sufficient justification to undertake another joint study between the RTOs while concurrently working to implement process improvements,” said David Kelley, SPP’s director of interregional relations.

Schonert said MISO and its stakeholders want another year to align the effort with MISO’s modeling and transmission planning timeline. The RTO also wants any joint study to encompass broader metrics, such as adjusted production costs. He said MISO is committed to learning why proposed projects are not passing interregional reviews and is seeking possible development of a “standalone” interregional process, which would bypass the “triple hurdle” of individual and joint RTO approval procedures.

If just one RTO votes to perform the joint study, the subject is put off until the annual issues review the following year, according to Eric Thoms, MISO manager of planning coordination and strategy.

However, the study will be approved if one RTO votes in favor for three consecutive years — regardless of the position of the second RTO. A first joint study in 2015 failed to recommend any interregional projects, and MISO and SPP met in March for an annual issues review to discuss improving the process. (See MISO, SPP Considering Second Joint Tx Study.)

Thoms said MISO’s current issues with SPP do not warrant a joint study. He pointed out that the new seam along the Integrated System in North Dakota and South Dakota is being monitored, transfer limits between MISO North and MISO South are in place, and congestion has not changed substantially from the 2015 joint study. More historical data is needed before MISO and SPP can identify the persistent levels of market-to-market flowgate congestion, he said.

“This does not mean that we stop monitoring issues or are not open to future studies as we learn more,” said Jesse Moser, MISO manager of infrastructure studies. “Just because we don’t do a study doesn’t mean we stop working with stakeholders on these issues.”

If MISO staff’s recommendation against a study is upheld through a PAC motion, the next opportunity to reconsider would follow the annual issues review in early 2017, Thoms said. If a pressing issue does arise, the two RTOs could scope out a study before the first quarter of 2017, he said.