MISO to add review of MVP costs and benefits to tariff

The Midwest ISO has proposed adding a new section to Attachment FF of its tariff to review and report on the costs and benefits of its multi-value project (MVP) portfolio of transmission projects.

The new section, “provides for the frequency, scope, and reporting of the MVP cost-benefit review required by the MVP rehearing/compliance order,” MISO said in an April 18 filing to FERC (Docket No. ER10-1791-000).

“When FERC accepted our transmission cost allocation filing, the commission required MISO to work with its stakeholders on a way to conduct a review every three years of the costs and benefits of approved multi-value projects,” a MISO spokesperson said in an email to TransmissionHub.

MISO and its transmission owners in July 2010 submitted proposed tariff revisions that established MVPs as a new category of transmission projects.

“Therefore, yesterday’s filing is in keeping with the process for the original proposed tariff revisions,” the spokesperson said, adding that Attachment FF defines MISO’s transmission expansion planning protocols, including the development of the MISO Transmission Expansion Plan (MTEP), planning cycles and milestones.

The new section would stipulate that MISO perform the MVP cost and benefits review every three years, beginning with the MTEP for 2014 (MTEP14). To prepare for each triennial MVP review, MISO would also conduct annual reviews “to track relevant cost and benefit data on a regular basis,” MISO said.

“The triennial and annual reviews will calculate MVP costs and benefits on a forward-looking basis, over both 20-year and 40-year periods,” MISO said. “The cost calculation will use updated project costs and in-service dates provided in the latest MTEP quarterly status report, and the benefits calculation will use updated future scenarios from the latest MTEP planning cycle.”

The proposed tariff revisions were developed in consultation with stakeholders over several months, through the regional expansion criteria and benefits (RECB) task force, MISO said.

In January, MISO outlined for the RECB task force the compliance requirement and presented a high-level compliance proposal, feedback on which was reviewed at the Feb. 23 task force meeting and then considered or incorporated in the development of proposed tariff revisions that were presented at the March 22 meeting.

“In particular, a number of stakeholders requested the tracking of various historical market trend data items not included in MISO’s original proposal,” MISO said.

The three-year review will address prospective quantitative, public policy, and other qualitative benefits from MVPs, and eventually, relevant historical market trend data, MISO said.

Quantitative benefits include congestion and fuel savings, as well as reductions in operating reserve requirements, the system-wide planning reserve margin and transmission line losses.

Beginning with MTEP17, the review will also include available historical market trend data, for the 5-year period preceding the review, relating to additional metrics that include congestion costs, energy prices, fuel costs, planning reserve margin requirement, the number of newly interconnected resources, grouped by types of resources, and the share of MISO’s energy supplied by each type of resource, MISO said.

The limited annual review will focus on congestion and fuel savings, project costs, in-service dates, and eventually, relevant historical market trend data based on the given year’s latest available data.

Dissemination of the review will occur “within a reasonable time” after each triennial and annual MVP review is completed, MISO said. The review will be published in the MTEP, posted on MISO’s website, and presented to appropriate stakeholder committees, including the RECB task force and the planning advisory committee.

MISO asked that the proposed tariff revision be made effective June 18.

About Rosy Lum 525 Articles
Rosy Lum, Analyst for TransmissionHub, has been covering the U.S. energy industry since 2007. She began her career in energy journalism at SNL Financial, for which she established a New York news desk. She covered topics ranging from energy finance and renewable policies and incentives, to master limited partnerships and ETFs. Thereafter, she honed her energy and utility focus at the Financial Times' dealReporter, where she covered and broke oil and gas and utility mergers and acquisitions.