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


Trachte Inc._id1770
Latest Top Stories

Senate Passes Tax Extenders Bill With Wind PTC Extension

The legislation, which passed in the U.S. House earlier this month, will renew the critical production tax credit through the end of 2014 - giving developers only about two weeks left to start construction.


Transmission Study Shows Nebraska Could Handle A Lot More Wind Power

A new report released by the Nebraska Power Review Board finds that the state already has enough infrastructure to accommodate at least 2 GW of additional wind generation.


Can Wind Energy And Birds Coexist? Environmental Group Says Yes

The Environmental Defense Fund, a supporter of responsible wind energy development, points out ways to help mitigate impacts of turbines on birds and bats.


Another Study Finds Wind Turbines Do Not Affect Nearby Property Values

Research conducted by the University of Guelph focused on regions in Ontario, and the conclusion echoes that of previous studies.


Too Little, Too Late? U.S. House Approves Wind PTC Extension

The U.S. House of Representatives has passed a tax extenders package that would renew the wind production tax credit (PTC) and about 50 other expired tax breaks through 2014. The wind industry argues the short-term fix is virtually no fix at all.

Hybrid Energy Innovations 2015