LS Power-led consortium wins first Order 1000 transmission project in MISO
Despite trimmed returns, MISO is looking to expand its transmission network with plans for up to 394 projects totaling $2.8 billion. About half of the total expected layouts would be for new or upgraded transmission projects with about 45% for substation improvements.
FERC in October cut return on equity (ROE) for transmission owners in MISO by about two percentage points, bringing it down to 10.3%. The federal agency was acting in response to a 2013 challenge by industrial customers in MISO who argued that the prevailing 12.38% ROE was too high.
The lower returns were still are attractive enough to attract bidders to MISO transmission solicitation.
MISO said one of the key features in the winning bid from Republic Transmission, as the consortium is known, was a $58.1 million firm ratebase cap, which puts a limit on potential costs to ratepayers.