PSC approves Entergy switch on power agency | Arkansas Blog

Friday, October 26, 2012

PSC approves Entergy switch on power agency

Posted By on Fri, Oct 26, 2012 at 2:12 PM

Thanks to Roby Brock for heads up on an Arkansas Public Service Commission order that permits Entergy Arkansas to move forward on an agreement with a new power transmission agency, Indiana-based MISO. There are some conditions, but the agencies met most of the PSC's earlier objections to the proposed combine, which has been opposed by a competing agency, the Southwest Power Pool, based in Little Rock.

MISO is happy naturally.

Southwest Power Pool is not:

While we are still reviewing the Order, SPP is surprised and disappointed that the Arkansas PSC conditionally approved Entergy’s request to join MISO. This is particularly disappointing since it appears to set a lesser standard than that placed upon other Arkansas utilities when they joined SPP, specifically the required governance that ensures ratepayers are protected through express authority delegated to state commissioners. Adding to the surprise is that the APSC was a leader in 2004 in ensuring Arkansas ratepayers were protected when SPP developed its RTO governance structure, which has been proven to be highly successful.

In addition, this approval will create a seam that will be difficult to manage and ripe for litigation as has been the case with MISO’s eastern seams. Unfortunately this litigation is similar to the litigation the APSC has worked so diligently to end with Entergy’s System Agreement.

Finally, SPP still believes it is the better choice for Arkansas ratepayers and has a governance structure that allows the APSC to protect its ratepayers. Regardless of our disappointment with this decision we will now turn our attention to ensuring a successful transition to MISO of our Entergy-related responsibilities, and will continue our work in building a robust transmission system and an efficient market for the stakeholders in the SPP region.

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