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23 October 2014

Washington Energy Report - October 20

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FERC Allows SPP to Consider Certain State and Local Laws and Regulations in Transmission Planning Process
United States Energy and Natural Resources

FERC Allows SPP to Consider Certain State and Local Laws and Regulations in Transmission Planning Process

On October 16, 2014, the Commission accepted in part Southwest Power Pool's ("SPP") proposed revisions to its Open Access Transmission Tariff ("OATT") in compliance with Order No. 1000, and determined that SPP could consider certain state and local laws and regulations in the early stages of its competitive solicitation process for transmission planning.

FERC Confirms ROE for ISO New England Transmission Owners, Sets MISO ROE for Hearing

On October 16, 2014, FERC issued two separate orders addressing the base return on equity ("ROE") for (1) the New England transmission owners ("NETOs") operating in ISO-New England Inc., and (2) certain transmission-owning members of the Midcontinent Independent System Operator, Inc. ("MISO TOs"). In the NETO order, FERC determined that the base ROE should be set at 10.57 percent. In the MISO TO order, FERC found that the complaint raises material issues of fact regarding whether the current base ROE of 12.38 percent remains just and reasonable, and therefore set the matter for hearing

FERC Accepts Bonneville Wind Curtailment "Oversupply Management" Policy Through 2015; Encourages Development of Long-Term Solution

On October 16, 2014 FERC issued an order accepting Bonneville Power Administration's ("BPA") revised Oversupply Management Protocol ("OMP") and OS-14 Oversupply Rate ("OS-14 Rate") as a compliance filing under FPA Section 211A standards. The Commission also issued an order approving the OS-14 rate under BPA's Northwest Power Act rate standards. In making the approval, FERC stated that its acceptance of the BPA's OMP remains an interim solution and that the Revised OMP expires on September 30, 2015. If BPA desired to extend the use of OMP beyond that date, it will be required to file a request to do so with FERC, explaining why the continued use of OMP is justified. FERC encouraged BPA to continue to work toward a "mutually agreeable long-term solution to manage oversupply conditions rather than continuing to rely on involuntary curtailment."

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