Louisiana state regulators on June 28 approved Entergy Louisiana‘s and Entergy Gulf States Louisiana‘s request to choose the Midwest ISO (MISO) as their independent coordinator of transmission (ICT) at the end of November.
In that capacity, MISO will provide reliability coordination and long-term transmission planning, as well as oversee Entergy’s power procurement process, MISO added June 28.
The move is expected to save about $4m annually compared to Entergy’s current contract with the Southwest Power Pool, which is set to expire at the end of November.
A key provision of MISO’s agreement with Entergy is the oversight of MISO’s independent market monitor – Potomac Economics – over operations in the region, MISO added.
“We think the benefits of extending the ICT arrangement and of transitioning to MISO as ICT provider are compelling,” Matthew Brown, vice president of federal policy with Entergy (NYSE:ETR) subsidiary Entergy Services, told TransmissionHub June 28. “MISO has extensive experience in providing these types of services and sophisticated tools for carrying out the ICT function.”
He noted that Entergy has had an ICT arrangement in place since 2006. With a couple of exceptions, the services are not changing dramatically, he said, noting that the primary roles of the ICT are reliability coordination and tariff administration. The ICT also “administer[s] transmission service on our system [and] oversee the weekly procurement process,” Brown said.
Todd Hillman, executive director of Entergy integration and market development for MISO, said in the statement that Entergy determined that MISO was the preferred choice for the company and its customers.
“While this is separate from Entergy’s decision to join MISO, it provides us the opportunity to become more familiar with the company’s transmission system and make recommendations to improve reliability,” he said.
The June 28 approval is separate from the previously approved change of control.
The Louisiana Public Service Commission in May approved the companies’ proposal to join MISO.
Louisiana is the first state in which approval has been given to Entergy operating companies to transfer functional control of their transmission facilities to the RTO. Subject to conditions, the proposed integration into MISO is expected to take place in December 2013, the companies said at the time.