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ARTICLE · 24 OCTOBER 2017

FERC Rejects SPP's Cost Allocation Plan For Two Interregional Transmission Projects

Troutman Pepper Locke LLP
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On October 6, 2017, FERC rejected without prejudice Southwest Power Pool, Inc.'s ("SPP") proposed tariff revisions and a cost sharing agreement related to two transmission projects...

United StatesEnergy and Natural Resources
Jamond Perry
Jamond Perry
Christopher Zentz
Christopher Zentz
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On October 6, 2017, FERC rejected without prejudice Southwest Power Pool, Inc.'s ("SPP") proposed tariff revisions and a cost sharing agreement related to two transmission projects with Associated Electric Cooperative ("AECI"), a rural electric cooperative that has member cooperatives in Missouri, Iowa, and Oklahoma, and City Utilities of Springfield, Missouri ("City Utilities"), a non-public utility that is a transmission-owning member of SPP.  AECI is not a member of SPP.  FERC found that SPP's proposal did not allocate the costs of the proposed transmission projects to its beneficiaries in a "roughly commensurate" manner.  For this reason, FERC rejected SPP's tariff revisions and cost sharing agreement without prejudice.  FERC's action is notable in that cross-border projects have been few and far between in the post-Order No. 1000 world of transmission planning, and FERC might be expected to tout the success of its planning initiatives.  FERC nonetheless found the

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