January 28, 2014

SPP files complaint with FERC over lack of compensation from MISO

LITTLE ROCK, Ark. – Southwest Power Pool, Inc., (SPP) today filed a complaint with the Federal Energy Regulatory Commission (FERC) alleging that Midcontinent Independent System Operator (MISO) is violating the Joint Operating Agreement (JOA) between SPP and MISO and SPP’s Open Access Transmission Tariff.

"SPP has tried to resolve this matter since learning that MISO intended to move forward with its interpretation of the SPP-MISO JOA, meaning use of the SPP system without compensation, which SPP considers discriminatory to our customers who are required by SPP’s tariff to pay for use of the SPP transmission system,” said Carl Monroe, SPP Chief Operating Officer. “SPP has expended great effort to provide suggestions and proposals to MISO to help move the dispute to resolution. However, we see no other path to resolve these issues except through a filing.”

Since MISO has rejected all suggestions, SPP notified MISO that exceeding its 1,000 megawatt contractual rights to flow energy would be an unauthorized use of the SPP transmission system as defined by the SPP tariff.

“Instead, over SPP’s objection and without authority from FERC or a court, MISO relied upon its unilateral interpretation of the SPP-MISO JOA and, as of December 19, has been using SPP’s system without the required reservation,” Monroe said. “SPP is required to charge MISO for the unauthorized use of the SPP transmission system. We ask that FERC find that the JOA is unjust, unreasonable, and unduly discriminatory to the extent it does not provide a mechanism by which SPP may assess charges for MISO’s use of the SPP transmission system.”

About Southwest Power Pool, Inc.

Founded in 1941, SPP is a group of 75 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. 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. Learn more about SPP by visiting our Newsroom.