Entergy meets two major MISO milestones
Entergy last week gained two substantial victories in its quest to join the Midwest Independent System Operator.
Within days of each other, the Public Utility Commission of Texas and the Arkasas Public Service Commission respectively approved with conditions Entergy Texas' and Entergy Arkansas' requests to transfer functional control of their transmission facilities to MISO. The moves are expected to occur in December 2013.
In May 2011, Entergy Texas and Entergy Arkansas both filed reports detailing the expected benefits of joining MISO and in April of this year, filed their requests to transfer functional control of their transmission system to MISO.
The analysis supporting the filing estimated savings for Entergy Texas electric customers of $225 million on a net present value basis, based on a study period of 2013 to 2022. Entergy Arkansas electric customers would save $263 million on the same basis over the same study period. The transfers are also expected to improve reliability and provide for more competitive and diverse generation resources.
The savings projected with MISO are largely attributed to its organized power markets, which allow for a more efficient commitment and dispatch of generating plants, to economies of scale offered by an RTO of MISO's size, and to MISO's transmission cost allocation methodology that equitably allocates the costs of transmission projects to those receiving the benefits from those projects.
"MISO's massive footprint, its preferred transmission cost allocation methodology and its proven experience in operating day-ahead and real-time regional energy markets are what make it a great fit for Entergy Texas," said Sallie Rainer, President and CEO of Entergy Texas.
Each of Entergy's utility operating company subsidiaries, which include those in Louisiana and Mississippi, has filed similar transfer requests with its respective regulator to join MISO.
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