Entergy aiming to join MISO, spurning SPP for RTO membership
Washington (Platts)--25Apr2011/759 am EDT/1159 GMT
Entergy plans to seek regulatory approval to join the Midwest
Independent Transmission System Operator, choosing MISO over other options
that have been the topic of debate for several years, Entergy said Monday.
Entergy's options for being part of a regional transmission organization
(RTO) included joining MISO or the Southwest Power Pool, or enhancing the
current independent coordinator of transmission (ICT) arrangement, where SPP
serves as Entergy's ICT.
Consulting firms and others have done several cost/benefit analyses
examining the options, but Entergy concluded that MISO is the best choice,
with a key factor being MISO's so-called "Day 2" market, Entergy said. That
market, a centralized dispatch process, creates a large wholesale market for
buying and selling power. Entergy's own study found that joining MISO
could save Entergy customers more than $1 billion in power production costs
from 2013 to 2022.
Article continues below...
Request a free trial of: Electric Power Daily
Electric Power Daily delivers a complete account of North American power industry news. It features federal and state policy, regulation, crucial environmental issues, generation and transmission projects, mergers and acquisitions, and much more.
A recent analysis and plan for Entergy joining SPP found that Entergy
customers would see benefits of about $38 million/year for the first 10 years
of SPP membership, with other members of SPP seeing benefits of about $32
million/year. Numerous analyses have been done, with higher figures for
benefits based on allocation of transmission costs and other factors.
Entergy's utilities operate in parts of Arkansas, Louisiana, Texas and
Mississippi, and the company has worked with state regulators to evaluate
options for joining an RTO.
The different Entergy operating companies will provide details
supporting the study. The steps needed to join MISO will be undertaken in the
months ahead, with the various Entergy companies filing with state regulators
in May. It plans to join MISO, assuming state and federal regulatory approval,
in December 2013.
"As the analysis showed, MISO's substantial scale and established market
made it the clear choice for customer benefits," said Wayne Leonard,
Entergy's chairman and CEO.
If Entergy's plan to join MISO is approved by regulators, the geographic
reach of MISO would extend from the Canada to the Gulf of Mexico, Entergy
--Tom Tiernan, email@example.com