FERC proposed decision would cut MISO transmission returns about 2%
A FERC administrative law judge last month issued a proposed decision that, if regulators approve it, could save consumers $200 million annually, according to the Minneapolis Star Tribune. Minnesota Commerce Commissioner Mike Rothman called the proposed decision an “important victory,” and told the news outlet it “is a huge step in the right direction.”
Major industrial customers challenged Midwest transmission rates, describing them as excessive, the news outlet reported. Other consumer advocates joined the challenge from six other states, focusing on whether or not transmission companies’ regulated profits are not in sync with the current economic atmosphere and low interest rates.
Federal regulators could still alter the proposed decision, changing the adjusted return on equity.
“What it demonstrates is that the 12.38% rate was too high,” Rothman said. “It was a rate that was exploiting consumers.” And Tyson Slocum, energy program director for Public Citizen, called the 12% rates “insanely high.”
Transmission operators were less pleased with the ruling.