ABB_id2059
in News Departments > New & Noteworthy
print the content item

The Federal Energy Regulatory Commission (FERC) has approved rate incentives for two transmission projects proposed by Tallgrass Transmission LLC and Prairie Wind Transmission LLC to be built in the Southwest Power Pool Inc. (SPP) region, but set the companies' formula rates and rate protocols for hearing. These transmission projects will allow for a significant expansion in wind electricity generation in the south central U.S.

Tallgrass is owned equally by OGE Transmission LLC, a subsidiary of OGE Energy Corp., and Electric Transmission America. Tallgrass proposes to build a two-segment, $500 million 765 kV transmission project in Oklahoma. The segments run separately from Woodward, Okla., to the Texas and Kansas borders.

Tallgrass' Kansas border project would interconnect with Prairie Wind's $600 million, 230-mile 765 kV project, centered near Medicine Lodge, Kan. Prairie Wind is a limited liability company owned equally by Westar Energy Inc. and Electric Transmission America.

The companies asked for identical formula rates with implementation protocols to recover their projected costs under the SPP tariff, subject to true-up, as well as a 13.3% return on equity that includes 2.5% in incentive adders for participation in a regional transmission organization, new technology and investing in substantial new transmission facilities that will provide for interconnection and delivery of renewable generation in SPP.

FERC determined that the projects are eligible for incentive rate treatment because they are pursuing projects that have been recommended through independent assessments of the long-term needs of the entire SPP region. Regardless of the potential for competing projects, FERC said its policy is to review each request for incentives on its own merits.

The projects also demonstrate a nexus between their proposals and the requested incentives based on their scope, effects, risks and challenges. FERC noted that the 765 kV projects are exceptional, as they will facilitate the interconnection and transport of at least 5,800 MW of the roughly 40,000 MW of new renewable power currently in SPP's queue, with the potential for the interconnection of additional renewable power that is now constrained by the limitations of the transmission system.

SOURCE: Federal Energy Regulatory Commission

Hybrid Energy Innovations 2015

Trachte_id2056
Latest Top Stories

The Song Remains The Same: AWEA Says Stable Policy Can Protect U.S. Wind Investment

Although the U.S. wind industry added more than four times the amount of wind in 2014 compared with 2013, predictable policy is needed to sustain its long-term success.


High Net-Worth Investors Claim 'All Of The Above' On Energy, Renewable And Otherwise

According to a recent Morgan Stanley poll, high-dollar investors favor investment in renewable energy technologies, such as wind and solar.


U.S. Wind Power Installations Surpassed 4.7 GW Last Year, Although China Still Leads

Bloomberg New Energy Finance reports that U.S. wind installations came back in a big way from a disappointing 2013.


IRS Specifies Performance, Quality Standards For Small Wind Turbines

The Internal Revenue Service (IRS) recently issued guidelines creating safety and performance standards for small wind turbines to be eligible for the 30% investment tax credit.


Hot Times North Of The Border: Canada Tops Previous Record For Installed Wind Capacity

For the second consecutive year, Canada's wind market has bested the country's previous mark for new installations.

Hybrid Energy Innovations 2015