Federal regulatory body, FERC, denies proposals by MISO and SPP to expand the reach of inter-regional transmission planning.
The Federal Energy Regulatory Commission (FERC) has turned down a waiver request from the Midcontinent Independent System Operator (MISO) and the Southwest Power Pool (SPP) for their 2024-25 interregional transmission study process. The decision was made due to concerns about the scope and justification of the proposed changes.
The waiver would have allowed MISO and SPP to broadly alter the scope of the Coordinated System Plan (CSP) study, departing from the current practice of evaluating the reliability and public policy benefits of interregional transmission projects as the avoided cost of regional transmission projects that address the same issue. Instead, the waiver would have enabled the use of multiple metrics to peg the reliability and public policy value of these projects.
One of the primary reasons for FERC's rejection was the broad and sweeping nature of the proposed changes. The waiver did not meet FERC's criteria for approving waivers from FERC-approved rules, as it was not limited in scope.
Another issue was non-compliance with the joint operating agreement. The waiver would have allowed MISO and SPP to use a single 10-year model incorporating multiple scenarios, rather than conducting a multi-year analysis as required.
Commissioner David Rosner, who dissented from the majority decision, argued that rejecting the waiver would result in less accurate planning and inefficient studies, missing out on needed interregional upgrades. He stated that the waiver would allow MISO and SPP to better tailor the CSP study to their regional needs and use more accurate study assumptions.
However, FERC indicated that the request was not the appropriate vehicle for improving the CSP process, suggesting that a request to change CSP rules would be more appropriate. Commissioner Judy Chang abstained from the docket.
The rejection of the waiver request means that MISO and SPP will have to commit resources towards an inefficient study that prevents them from identifying needed interregional transmission projects, according to Commissioner Rosner's statement.
The decision has drawn criticism from some quarters, with International Transmission Co. and the American Council on Renewable Energy supporting the MISO-SPP waiver request. They argue that the study process has never identified an interregional project that would benefit both MISO and SPP due to limited benefit valuations outlined in the agreement.
In a dissenting statement, Commissioner Rosner emphasised that the waiver does not create a new study process, nor does it change project selection criteria or cost allocation provisions. It simply allows for a more accurate and efficient study process to identify needed interregional transmission projects.
- The waiver request from MISO and SPP, rejected by FERC, aimed to modify the Coordinated System Plan (CSP) study process, shifting from the current practice of using avoided cost of regional transmission projects to multiple metrics for evaluating interregional transmission projects.
- The FERC's decision not to grant the waiver request may lead MISO and SPP to conduct inefficient studies, as resource commitments are required for an outdated process that potentially hinders the identification of necessary interregional transmission projects, according to Commissioner Rosner's statement.
