FERC ruling clears way for asset purchase to be finalized
CARMEL, IN, October 18, 2001 — The Midwest Independent Transmission System Operator, Inc. announced today that its Board of Directors has authorized the completion of an asset purchase agreement between the Midwest ISO and MAPPCOR, the contractor to the Mid-Continent Area Power Pool (MAPP).
The Federal Energy Regulatory Commission’s acceptance earlier this month of amendments to the MISO’s tariff and transmission owners’ agreement set the stage for completion of the asset purchase agreement.
In a ruling issued Oct. 11th, the Commission permitted MAPP members of the Midwest ISO to take network service for bundled retail load and approved expanding the Midwest ISO’s Advisory Committee to add representatives from the MAPP region. FERC approval of those amendments were conditions of the agreement with MAPPCOR.
At its monthly meeting today, the Midwest ISO board waived a third condition of the asset purchase agreement – that utilities representing two-thirds of the MAPP load join the Midwest ISO.
The MAPP members who have joined the Midwest ISO, or have committed to joining the Midwest ISO, represent 65 percent of the total MAPP load and the MISO expects to service additional MAPP-member load when it begins providing unbundled regional transmission organization services to TRANSLink.
TRANSLink is a transmission-only company whose members include MAPP members who have not signed the Midwest ISO transmission owners’ agreement. The asset purchase agreement will close on Nov. 30, said James P. Torgerson, president and CEO of the Midwest ISO.
“The addition of the MAPP Center personnel and security coordination assets provides the Midwest ISO with a greater ability to serve its members in the MAPP region. The MAPP Center staff brings to us tremendous knowledge and experience in meeting the specific needs of that area,” Torgerson said.
Under the terms of the agreement with MAPPCOR, the Midwest ISO will assume full responsibility for the MAPP Center and its assets. MAPPCOR, Inc. will continue to be responsible for North American Electric Reliability Council related reliability functions and Power and Energy Market Committee functions.
With its present membership base, the non-profit Midwest ISO, based in central Indiana, will be responsible for directing the flow of up to 81,000 megawatts of power over more than 70,000 miles of high voltage transmission lines when its operations begin on Dec. 15.