Stakeholders in the Midwest Independent Transmission System Operator (MISO) footprint received advance notice of the contents contained in the system operator’s re-filing on July 15, 2010 with the Federal Energy Regulatory Committee (FERC) regarding its cost allocation proposals for transmission.
FERC previously deemed MISO’s so-called “90/10” generator interconnection cost allocation methodology proposed in a July 2009 filing “interim” and ordered the system operator to take a broader look at the integration of resources. Following the 90/10 decision MISO backed away a plan to charge new and existing generators 20% of the cost of new transmission needed to meet renewable energy development goals
The outcome was a new category of transmission projects called multivalue projects (MVPs), which target regional transmission lines, including those used to integrate wind. Cost allocation for these MVPs will be done on a postage stamp basis. A previous cost allocation proposal allocated 20% of the cost of MVPs to new and existing generators. That potential cost burden and uncertainty resulting from the 20% plan had caused some wind industry experts to speculate that wind projects would abandon the Midwest for other parts of the country where transmission is cheaper. More will be known once MISO makes its FERC filing tomorrow July 15, 2010. Read more about MISO and Renewable Energy Integration