Reuters: Regulatory News: RPT-UPDATE 1-Louisiana approves Entergy move to Midwest ISO

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RPT-UPDATE 1-Louisiana approves Entergy move to Midwest ISO May 24th 2012, 11:40 Thu May 24, 2012 7:40am EDT * Louisiana first of four state commissions to act on MISO proposal * Commission retains right to reconsider move under various conditions HOUSTON, May 23 (Reuters) - Louisiana regulators voted on Wednesday to approve a transfer of control of Entergy Corp's high-voltage transmission assets in the state to the Midwest Independent Transmission System Operator (MISO), a move being closely watched by regulators in Arkansas, Texas and Mississippi. New Orleans-based Entergy, which for years resisted the trend to relinquish control of its transmission grid, is now working to join the 11-state MISO organization by December 2013. Similar applications have been filed by Entergy utility units in Arkansas, Texas and Mississippi. The Louisiana Public Service Commission was the first to act on Entergy's request to join MISO and its approval came with a number of conditions. The commission vote "is a major step forward for electric customers throughout Louisiana," Todd Hillman, a MISO executive in charge of the Entergy integration process, said in a statement. "The overwhelming support from stakeholders demonstrates our commitment to work with parties to listen and address concerns." The company said customers of Entergy Louisiana and Entergy Gulf States could save $430 million to $575 million in the first decade after joining MISO through more efficient buying and selling of electricity in MISO's larger power market. "Joining MISO is expected to reduce costs and improve reliability for our customers," said Bill Mohl, president of the two Entergy utilities in Louisiana. Overall, Entergy said MISO membership will lead to savings of up to $1.4 billion over a decade for its 2.8 million customers in four states. The five-member Louisiana commission retained the right to re-examine Wednesday's decision if regulators in Arkansas or any other state rejects Entergy's move to MISO, if major changes are made to MISO's governance rules and depending on the outcome of several cases pending at the Federal Energy Regulatory Commission. If approved by all four states, MISO would assume control of transmission planning, dispatch of generation offered to MISO's markets and manage grid congestion on Entergy's system. Entergy's move to join MISO came in the last two years at the growing insistence of state regulators and FERC. The agencies had been bombarded with complaints from independent power producers trying to sell power outside Entergy's transmission area and smaller utilities seeking to import cheaper power using the Entergy grid. The move also follows the October 2010 disclosure that Entergy was cooperating with a U.S. Department of Justice civil investigation of its competitive practices, including its transmission system practices. RTO membership is also key to Entergy's proposal to spin off its transmission operation to ITC Holdings Corp. Entergy needs approval from each state regulator to join an RTO to advance the ITC deal, according to ITC officials. Link this Share this Digg this Email Reprints

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