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Texas PUC Staff Join NUS Which Would Approve Transfer Of Transmission Line To NextEra Sub.

October 02,2018

NextEra Energy Transmission Southwest (NEET Southwest), Rayburn Country Electric Cooperative, Inc., and the Public Utility Commission of Texas have entered into a non-unanimous stipulation which would approve the transfer to NEET Southwest of Rayburn's certificate of convenience and necessity rights and the associated authorization to provide service to the public under PURA § 37.051 for the Jacksonville-Overton Transmission Line

Specifically, the transfer to NEET Southwest includes a 30-mile-long segment of 138 kV transmission line (including easements) located in Cherokee, Smith, and Rusk Counties between the Jacksonville Substation in Cherokee County and the Overton Substation in Rusk County (the "Jacksonville-Overton Line) from Rayburn. The line is used to serve loads within SPP. Rayburn no longer needs the line with its pending transition to ERCOT

Southwestern Public Service Company and Texas Industrial Energy Consumers oppose the stipulation.

Provisions of the stipulation include:

• Any costs related to the transfer of load from SPP into ERCOT for which Rayburn has applied in Docket No. 48400 should be determined in Docket No. 48400, and approval of the transfer of the Jacksonville-Overton Transmission Line should not be conditioned on a requirement that some part of the purchase price in excess of net book value be used to offset the cost of transferring Rayburn's remaining load in SPP to the Electric Reliability Council of Texas

• NEET Southwest shall take no action that would cause a market participant within the ERCOT region that is not a public utility under the Federal Power Act or ERCOT itself to become a public utility under the Federal Power Act or become subject to the plenary jurisdiction of FERC. NEET Southwest shall ensure that no commingling of energy between SPP and ERCOT systems occurs as a result of NEET Southwest's ownership and operation of the Jacksonville-Overton Transmission Line.

Further provisions regarding cost recovery can be found in the stipulation here

Texas   ERCOT   SPP   M&A   NextEra Energy  

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