July 5, 2011

Southwest Power Pool anticipates renegotiation of JOA if Entergy joins MISO

LITTLE ROCK, Ark. – SPP is pleased with a crucial aspect of FERC’s Order issued Friday in response to MISO’s request for a declaratory order interpreting the Joint Operating Agreement (JOA) between the companies. FERC specifically recognized SPP’s position that the JOA should be renegotiated. FERC stated that MISO has “an obligation to negotiate in good faith” in response to changes to the JOA that SPP may propose if Entergy joins MISO.

Of paramount importance will be how MISO and/or Entergy will compensate SPP members for MISO’s proposed new daily use of SPP’s transmission system. Should Entergy’s state regulators approve Entergy’s membership in MISO, SPP will propose significant changes to the JOA to protect its members’ systems from the cost impacts resulting from transmission limitations and congestion. These changes will ensure equitable compensation for transmission service and transmission construction for SPP’s members.

“Consistent with independent analysis, SPP still believes it is the right choice for Entergy and its customers and will continue to make that argument in state proceedings. Should it become necessary, SPP will work with MISO to determine a path forward that also protects our members and their ratepayers,” said Nick Brown, SPP President and CEO. “There are still many steps in this process.”

About Southwest Power Pool, Inc.

Southwest Power Pool, Inc. is a group of 64 members in Arkansas, Kansas, Louisiana, Mississippi, Missouri, Nebraska, New Mexico, Oklahoma, and Texas that serve more than 15 million customers. Membership is comprised of investor-owned utilities, municipal systems, generation and transmission cooperatives, state authorities, wholesale generators, power marketers, and independent transmission companies. SPP's footprint includes 48,930 miles of transmission lines, and 370,000 square miles of service territory. SPP was a founding member of the North American Electric Reliability Corporation in 1968, and was designated by the Federal Energy Regulatory Commission as a Regional Transmission Organization (RTO) in 2004 and a Regional Entity (RE) in 2007. As an RTO, SPP ensures reliable supplies of power, adequate transmission infrastructure, and competitive wholesale prices of electricity. The SPP RE oversees compliance enforcement and reliability standards development. Read more fast facts or watch a video about SPP.