Dive Brief:
- Three new competitive transmission companies have been established by established midwestern utilties to take advantage of new power line building opportunities in organized markets, RTO Insider reports.
- The Federal Energy Regulatory Commission (FERC) this month conditionally accepted rate proposals and other protocols for three competitive transmission developers. Midwest Power Transmission Arkansas will operate in the Midcontinent ISO, while ATX Southwest and Kanstar Transmission will work in the Southwest Power Pool.
- FERC denied several cost recovery proposals, however, including Kanstar's request to recover all costs if selected for a project that is later discontinued.
Dive Insight:
In orders issued Sept. 11 and Sept. 17, federal regulators have conditionally accepted rate proposals, returns on investment and equity structures for three new competitive transmission providers.
All of the three have utility connections: ATX is an affiliate of Ameren; Kanstar is an affiliate of Westar Energy; and Midwest power was formed by Westar and Warren Buffet's Berkshire Hathaway Energy.
The commission said it granted Kanstar's hypothetical capital structure of up to 60% equity and 40% debt, but denied the company's request to recover all costs associated with developing the North Liberal-Walkemeyer 115 kV Competitive Upgrade, should Kanstar be selected and the project later be nixed.
FERC accepted ATX's proposed capital structure of 56% equity and 44% debt. Midwest also proposed a 60-40 split.
FERC also denied ATX Southwest’s request for authorization to recover prudently incurred costs related to transmission facilities abandoned for reasons beyond its control, and its request for authorization to include all construction work in progress in its rate base during development and construction.
