Entergy (NYSE:ETR) companies Entergy Louisiana and Entergy Gulf States Louisiana on Oct. 31 filed a joint application with Louisiana regulators seeking to join the Midwest Independent Transmission System Operator.
The companies’ proposal to join MISO as transmission-owning members was initially announced in April.
According to the filing with the state Public Service Commission, the companies requested timely consideration of their request for authorization to transfer functional control of certain transmission assets to MISO and authorization to defer costs incurred related to attaining membership in the MISO RTO. In order to obtain the expected benefits for their customers of joining the MISO RTO through integration by December 2013, the companies requested a procedural schedule that would allow the LPSC to make a determination by the second quarter of 2012.
An Entergy spokesperson said Oct. 31 that the companies are requesting that the LPSC conduct its review of the proposal to join MISO in two phases. In the first phase, the companies are requesting that the LPSC make a finding that the companies joining MISO is in the public interest. In the second phase, which would begin by a filing anticipated to be made in mid-2012, the companies expect to request that the LPSC address the appropriate rate making and other technical issues associated with the companies’ integration into MISO, the spokesperson added.
“A number of potential transmission operating arrangements have been under review by the Entergy operating companies, and following careful analysis, we are confident that our proposal to join MISO is a key step in our efforts to best meet the energy needs of our customers,” Bill Mohl, the companies’ president and CEO, said in the statement. “This decision is an important component of our commitment to meet those needs as we look forward into the future.”
The companies’ analysis shows that joining MISO is expected to result in net benefits to customers of both companies, collectively, of $430m to $575m net present value basis based on a study period of 2013 to 2022.
These savings, the statement added, are largely attributable to MISO’s organized power markets, which allow for a more efficient commitment and dispatch of generation resources, and to economies of scale offered by an RTO of MISO’s size.
Another important factor is that under the provisions of MISO’s tariff and its transition proposal to the Entergy operating companies, customers will be allocated costs for region-wide transmission projects only in proportion to the benefits they are expected to receive from those projects. Additionally, with the move to MISO, Louisiana’s transmission grid is expected to operate even more reliably as a result of MISO’s monitoring tools, congestion management processes and backup capabilities, the statement added.
Other Entergy operating companies are expected to file for change of control with their regulators in the coming weeks and months.