FERC approves new Entergy power pool deal | Arkansas Blog

Tuesday, July 5, 2011

FERC approves new Entergy power pool deal

Posted By on Tue, Jul 5, 2011 at 10:13 AM

The Federal Energy Regulatory Commission has ruled that Entergy can use Southwest Power Pool power lines to transmit electricity to Midwest ISO, another power transmission organization with which Entergy has struck a new transmission agreement. Southwest and Midwest had competed for Entergy's business. Here's some of the background. Southwest is headquartered in Little Rock.

Southwest Power Pool sees some good in ruling:

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.”

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