in News Departments > Policy Watch
print the content item

The Federal Energy Regulatory Commission (FERC) has granted Xcel Energy Services' request for incentive transmission rates as part of its plan for six transmission upgrades to meet state renewable portfolio standards and serve increased power demand in the upper Midwest.

Xcel, on behalf of Northern States Power Co. of Minnesota and Northern States Power Co. of Wisconsin (NSP Cos.), filed proposed modifications to NSP's transmission rate formula under the Midwest Independent Transmission System Operator open-access transmission and energy markets tariff.

The proposed modifications permit two types of incentive rate treatments for the upgrades: recovery of return on 100% of prudently incurred construction work in progress and recovery of prudently incurred costs of transmission facilities that are canceled or abandoned for reasons beyond the NSP Cos.' control.

The transmission upgrades will help serve renewable energy resources, particularly wind energy. Xcel is looking to build transmission to accommodate between 300 MW and 700 MW of wind power.

FERC conditionally accepted the companies' proposal to modify their transmission rate formula to use projected test year cost inputs, with a true-up mechanism to reflect actual costs.

"Our analysis indicates that the NSP Cos.' proposal to switch to forward-looking estimated transmission costs with a true-up mechanism is just and reasonable," according to FERC.

To provide customers with sufficient time to review revenue requirement information, FERC directed the companies to provide estimated information to customers by Sept. 1 each year, instead of their proposed date of Oct. 1.



Trachte Inc._id1770
Latest Top Stories

Alberta Breaks Wind Power Record, Then Does It Again

Last week, the Alberta Electric System Operator recorded new wind production peaks in the Canadian province - highlighting how well the grid integrated the renewable energy.


Federal Appeals Court Finds Obama's Wind Farm Decision Unconstitutional

A federal appeals court ruled that the U.S. government violated the constitutional rights of Chinese-owned Ralls Corp. when ordering the divestment of four Oregon wind farms.


Renewables Make Up Over 50% Of New U.S. Power In First Half Of 2014

According to a recent government report, renewable energy sources, such as wind and solar, continue to dominate new electric generating capacity.


Suzlon Facility Lends Key Assist In Developing 'The Wind Technicians Of Tomorrow'

The turbine manufacturer’s Elgin, Ill.-based training facility is the culmination of a program that puts a new twist on a proven method of instruction.


Having Their Say: CanWEA Clarifies True Source Of Canadian Wind Success

The Canadian Wind Energy Association (CanWEA) takes issue with a recent report summary regarding various renewable energy policies in North America.

Canwea_id1984
Renewable NRG_id1934
Navigant_id1983