FERC issued an order directing the Midcontinent Independent System Operator, Inc. (MISO) to either: (1) revise its Open Access Transmission, Energy and Operating Reserve Markets Tariff (Tariff) to ensure that a generation or non-generation resource owner will no longer receive compensation for Reactive Supply and Voltage Control Service (Reactive Service) after it has deactivated its unit(s) or after it has transferred its unit(s) to another owner and to clarify the treatment of Reactive Service revenue requirements for said unit(s); or (2) show cause why it should not be required to do so.

FERC said recent filings by generation owners, "suggest that MISO may be continuing to pay generation and non-generation resources for Reactive Service after units have deactivated."

"The MISO Tariff neither explicitly states that compensation for Reactive Service will cease when a generation or non-generation resource owner has deactivated a unit such that the unit is no longer capable of providing the service, nor does the MISO Tariff explain whether or how compensation for Reactive Service is adjusted when a unit is transferred from a fleet," FERC noted

"Paying for a service required under the Tariff where ... the generation or non-generation resource owner is no longer capable of providing that service is unjust and unreasonable," FERC said

FERC in a recent related order noted that, "Consumers Energy may have continued to receive payments for Reactive Supply Service based on a revenue requirement that included the retired units, after it retired those units."

Similarly, in another recent case, FERC had said, "MidAmerican may have received payment for services for units that were not capable of providing that service [as a result of retirement]."

"Given that some generation and non-generation resource owners apparently continued to receive compensation for Reactive Service after their units were no longer capable of providing that service, we have referred such concern to the Office of Enforcement for further examination and inquiry as may be appropriate," FERC said

Docket No. EL16-61

Tags:
MISO   FERC   Wholesale   Deregulation   Organized Markets  

Comment on this story


ADVERTISEMENT
NEW Jobs on RetailEnergyJobs.com
TPV-SALES-EXECUTIVE -- Back Office Provider -- Other
Sr-Market-Risk-Analyst -- Wholesale Supplier/Trader -- New York - New York City Metro
Head-of-Retail-Operations -- Wholesale Supplier/Trader -- Other
Energy-Regulatory-Specialist -- Other -- Other
More Stories on RetailEnergyX.com:
FERC Orders $230 Million In Penalties Against GreenHat, Related Parties '
UK Retail Supplier With US Affiliate In Talks To Secure 'New Funding'; Wholesale Prices Challenge
Gov.'s Administration Favors Bill Banning New Residential Enrollments With Retail Energy Suppliers
Report: Lubbock, Texas Poised To OK Buyout Of LP&L's Power Supply Contract
FERC Issues Show Cause Order To GreenHat With Proposed $229 Million Fine For Alleged 'Manipulation'