Industries Transmission Investment
December 30, 2009 -
Otter Tail Power Co., Docket No. ER10-183-000
The Commission granted Otter Tail Power Co.'s (Otter Tail) request for transmission infrastructure investment incentives related to its investment in three transmission projects that are part of Phase I of the CapX2020 Project. Specifically, the Commission approved recovery of: (1) 100 percent of prudently incurred Construction Work in Progress in rate base; and (2) 100 percent of prudently incurred costs of transmission facilities that are cancelled or abandoned for reasons beyond Otter Tail Power Co.'s control. In addition, the Commission accepted Otter Tail's proposal to recover its revenue requirement using a forward-looking formula rate under Attachment O-Otter Tail. The Commission conditioned its acceptance of Otter Tail's proposals upon Otter Tail submitting a compliance filing within 30 days that makes certain tariff revisions that are necessary to properly implement the requested incentives.
December 17, 2009 -
Southern California Edison Co., Docket No. EL10-1-000
The Commission conditionally granted Southern California Edison Co.'s request for approval of certain incentive rate treatments for its proposed Eldorado-Ivanpah Transmission Project. Specifically, the Commission modified Southern California Edison Co.'s request for a return (ROE) on equity adder of 150 basis points, instead granting a 100-basis point ROE adder. In addition, the Commission conditioned the grant of all the incentives on the California Independent System Operator's approval of the project through its transmission planning process.
December 17, 2009 -
Citizens Energy Corp, Docket No EL10-3-011
The Commission granted Citizens Energy Corp's (Citzens) request to recover prudently incurred abandonment costs if its portion of the proposed Sunrise PowerLink Project, which will deliver renewable resources from Imperial Valley, California to San Diego County, California in California, is abandoned for reasons beyond Citizens' control. The Commission concluded that Citizens' capital cost recovery methodology, which includes a hypothetical capital structure of 50 percent debt and 50 percent equity and a 30-year levelized capital recovery approach, is just and reasonable.
November 23, 2009 -
Green Energy Express, Docket No. EL09-74-000
The Commission conditionally approved the rate incentives requested by Green Energy Express (Green Energy) for a proposed transmission project that would deliver up to 2,000 megawatts of otherwise location-constrained renewable resources to load centers in southern California. The Commission determined that Green Energy Express did not demonstrate that its project would either ensure reliability or reduce the price of delivered power by reducing congestion; accordingly the Commission conditioned the grant of incentives on approval of the project in the California Independent System Operator's (CAISO's) transmission planning process, and directed Green Energy to submit a filing informing the Commission whether the project was approved or disapproved in the CAISO's planning process within 30 days of such decision.
November 19, 2009 -
Central Maine Power Co. and Maine Public Service Co., Docket No. EL08-77-001
The Commission granted a motion to lodge evidence that the Aroostook Wind Energy Project, which was to be connected to the grid in southern Maine by the Maine Power Connection Project, has been discontinued. The Commission also determined that in light of the cancellation of the Aroostook Wind Energy Project, the Maine Power Connection Project no longer exists in the form that the Commission considered when it previously authorized transmission rate incentives for the Project and therefore its sponsors will have to submit a new filing seeking transmission rate incentives for any redesigned project.
June 26, 2009 -
Commonwealth Edison Company and Commonwealth Edison Company of Indiana (EL08-78-001)
The Commission denied rehearing of Commonwealth Edison Co. and Commonwealth Edison Co. of Indiana's (collectively, ComEd) petition for a declaratory order, requesting that the Commission approve its proposed incentive rate treatments for 22 transmission projects. Specifically, ComEd requested an incentive rate of return adder of 150 basis points for each of the 22 projects, as well as an additional ROE adder of 50 basis points for two Static VAR Compensators as a separate incentive for the use of advanced transmission technology. The Commission denied rehearing of the denial of its petition for declaratory order with respect to one of the transmission projects, involving two Static VAR Compensators.
May 29, 2009 -
Baltimore Gas and Electric Company (Docket No. ER09-475-000)
The Commission approved Baltimore Gas and Electric Company's (BG&E) request for transmission rate incentives for its portion of the 230-mile, 500 kV Mid-Atlantic Power Pathway (MAPP) Project. Specifically, BG&E requested a return on equity transmission rate adder of 150 basis points for the construction of 10.4 miles of new transmission facilities. BG&E also requested authorization to recover 100 percent of all prudently incurred costs if the MAPP Project is abandoned for reasons beyond BG&E's control.
April 16, 2009 - NSTAR Electric Company (ER09-14-002)
The Commission addressed rehearing of an order that addressed NSTAR Electric Co.'s (NSTAR) incentive proposal for its 345 kV Transmission Reliability Project and for three separate transmission projects, the Brook Street, the Carver, and the Barnstable Projects, collectively referred to as the Southeastern Massachusetts Upgrade Projects. The Commission affirmed its denial of the request for a 100 basis point return on equity (ROE) incentive for the Carver and the Barnstable Projects because these projects fail to meet the Commission's nexus test established in Order No. 679, and affirmed the denial of the request for an ROE incentive for use of advanced transmission technologies for all four projects.
April 10, 2009 - Green Power Express LP (ER09-681-000)
The Commission approved transmission infrastructure investment rate incentives for a proposed 3,000-mile regional "green power superhighway" designed to deliver wind-powered renewable energy from the upper Midwest to consumers in and around Chicago, Minneapolis and other load centers. Green Power Express estimates that its proposed 765 kV transmission network would cost between $10 billion and $12 billion, eventually span seven states and deliver up to 12,000 megawatts of wind energy and stored energy from the Dakotas, Minnesota and Iowa to Midwestern load centers in Chicago, Minneapolis and southeastern Wisconsin. News Release
March 30, 2009 - Trans-Allegheny Interstate Line Co. (ER09-590-000)
The Commission denied Trans-Allegheny Interstate Line Co.'s (TrAILCo) request for authorization to implement a 12.7 percent incentive return on equity (ROE) for the replacement of autotransformers and the upgrade of associated equipment at American Electric Power's Kammer Substation (Kammer Project). The Commission determined that TrAILCo had not demonstrated how the scope, effect and risks or challenges of the Kammer Project warrant an incentive ROE.
March 27, 2009 - Pioneer Transmission (ER09-75-000 and ER09-75-001)
The Commission addressed Pioneer Transmission, LLC's (Pioneer) request for transmission rate incentives for a proposed 240 mile transmission project consisting of a 765 kV transmission line in Indiana that will connect PJM Interconnection, L.L.C. (PJM) and the Midwest Independent Transmission System Operator (Midwest ISO). This order establishes the first return on equity (ROE) for a cross-regional transmission organization (RTO) project. Specifically, the Commission: (1) established a base ROE of 10.54 percent; (2) approved a ROE adder of 50 basis points for membership in a RTO; (3) approved a ROE adder of 150 basis points for new transmission, but stated that the ROE will not go into effect unless and until the project is approved by the regional transmission planning processes of PJM and MISO and there is a Commission-approved cost-allocation methodology in place, as acknowledged by Pioneer; (4) denied a ROE adder for advanced technologies; (5) approved a construction work in progress (CWIP) incentive, but stated that the 100 percent inclusion of CWIP in rate base will not go into effect unless and until the project is approved by the regional transmission planning processes of PJM and MISO and there is a Commission-approved cost-allocation methodology in place, as acknowledged by Pioneer; (6) approved abandonment and regulatory asset incentives; and (7) established settlement and hearing procedures for certain formula rate issues.
March 16, 2009 - ITC Great Plains (ER09-548-000)
The Commission approved transmission rate incentives for two transmission projects proposed by ITC Great Plains, LLC, the KETA Project and the Kansas V Plan, to be built in the Southwest Power Pool, Inc. (SPP) region, but set the company's formula rates and rate protocols for hearing. The Commission approved the requested 100 percent construction work in progress included in rate base, abandoned plant incentive, a regulatory asset to provide for the recovery of start up .and development costs of the projects beginning on the in-service date of the projects, and return on equity adders including 100 basis points for independent transmission companies and 50 basis point adders for regional transmission organization membership.
March 13, 2009 - Public Service Electric and Gas Company (ER09-249-000)
The Commission granted Public Service Electric and Gas Company (PSE&G), requested authorization for a 150 basis-points return on equity (ROE) transmission rate incentive as applicable to PSE&G's portion of the Mid-Atlantic Power Pathway Project (MAPP Project). The Commission also granted PSE&G authorization to recover 100 percent of all prudently-incurred development and construction costs if the MAPP Project is abandoned or cancelled for reasons beyond PSE&G's control.
January 16, 2009 - Northeast Utilities Service Company (ER08-966-001)
The Commission denied rehearing of an order which granted Northeast Utilities Service Co.'s request for a waiver of the December 31, 2008 deadline for receiving a 100 basis point transmission incentive under Opinion No. 489 for Regional Transmission Expansion Plan-approved transmission projects, and its request for an additional 50 basis point incentive for using advanced transmission technologies. The Commission affirmed its prior conclusion that good cause existed to waive the deadline so that Northeast Utilities Service Co. could complete testing on the Middletown-to-Norwalk Project and continue to qualify for a 100 basis point incentive. The Commission also affirmed its conclusion to allow an additional 50 basis point incentive for using advanced transmission technologies.
January 16, 2009 - The United Illuminating Company (ER07-653-001)
The Commission denied rehearing of an order that incorporated into United Illuminating Co.'s approved formula rate the costs associated with two transmission rate incentives. The project at issue is a new 345-kV transmission line from Middletown to Norwalk, Connecticut and the rebuilding and modifying of portions of the existing 115-kV transmission system. The Commission rejected arguments that the Commission should not have approved recovery of 100 percent construction work in progress in the rate base and a 50 basis point advanced transmission technology adder to the return on equity. The Commission found both of the incentives justified, whether considered individually or together.
| Jeffery Hitchings