FERC Lifts Restriction On MISO Export Pricing To PJM For Multi-Value Projects

On July 13, 2016, FERC issued an order partially lifting a long-standing pricing limitation for energy exports from the Midcontinent Independent System Operator, Inc. ("MISO") to the PJM Interconnection, L.L.C. ("PJM") in relation to Multi-Value Projects ("MVPs"). The order—released in response to a remand from the U.S. Court of Appeals for the Seventh Circuit ("Seventh Circuit Court of Appeals")—resolves a multi-year-long process and debate over how to allocate costs to PJM for MISO's MVP transmission projects that benefit customers inside of the PJM region. The central issue decided by FERC was, in light of current system, market, and technological conditions impacting these two Regional Transmission Organizations ("RTOs"), whether it was still necessary to maintain a restriction on export charges for MVP-enabled energy deliveries that originate in MISO and sink in PJM.