Legalectric

Here’s an interesting case (oh, how I hate that word “interesting”).  It’s about whether a state can offer “incentives” over and above FERC wholesale electric rates that would incentivize construction of new in-state generation.  US SCt says NO!  The states can only regulate retail rates.

Hughes v Talen Energy Marketing_14-614 April 19, 2016

This is a case regarding Maryland “incentives” and PJM, but it’s applicable to our good friends at MISO too.

So do tell, what does this mean for FERC set rates of recovery and cost allocation for all this transmission to enable the wholesale market?  What happens when FERC rates stick their nose under the tent in state rate proceedings, i.e., Schedule 26A covering return and cost allocation for these big transmission projects we know and love?  From what I can see of Schedule 26A, they’re allocating a “retail share” and, well, what business does FERC, via MISO (in this area), have with retail rates?

Transmission Rate Information

Schedule 26A – Indicative Rate Charges MISO (last updated 3/31/2016)

Look at all the ways we’re charged for transmission:

Transmission Pricing – MISO