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MISO Seeks Declaratory Order Crucial to Case for Entergy Integration
April 11, 2011
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The Midwest ISO has petitioned FERC for a declaratory order, asking that FERC confirm that the terms of the Joint Operating Agreement in effect between the Southwest Power Pool and MISO, regarding the sharing of transmission capacity on a common path, will remain in effect and applicable to Entergy Arkansas, Inc. in the event Entergy Arkansas becomes a transmission-owning member of MISO.
The treatment of the at-issue transmission capacity will be key in determining the viability of Entergy Arkansas (and/or its affiliated operating companies) joining MISO as a transmission owner.
MISO and Entergy would share only one, limited physical connection (1,000 MW), and thus transmission sharing through ties among Entergy and SPP (which total 14,000 MW) under the JOA would be essential in efficiently integrating Entergy into MISO.
The disputed language to the MISO-SPP JOA states:
"Sharing Contract Path Capacity. If the Parties have contract paths to the same entity, the combined contract path capacity will be made available for use by both Parties."
SPP says that once Entergy cedes its independence and joins MISO, it would no longer be an "entity" to which MISO has a contract path, but would rather be wholly part of the MISO. As such, SPP would not be required to share the capacity as it is currently required to do under the JOA.
MISO argued that Entergy's membership in MISO does not change any rights available under the JOA, and that the term "entity" includes transmission-owning RTO members. MISO asked FERC to confirm its interpretation.
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