DTE Energy transmission subsidiary asks FERC to suspend innovative rate request pending refiling by MISO

DETROIT, Sept. 11, 2001 – International Transmission Company (ITC), a subsidiary of DTE Energy today filed a motion with the Federal Energy Regulatory Commission (FERC) to suspend the effective date of its innovative transmission rates pending a re-filing by the Midwest Independent System Operator Inc. (MISO).

Earlier this month, ITC announced its move from participation in the Alliance Regional Transmission Organization (RTO) to the MISO.

“In our previous position as members of the Alliance we filed our own innovative rate request because the Alliance RTO had not yet developed a structure to support such a filing,” said Joseph Welch, ITC president. “However, as members of the MISO, a more developed structure exists with an advanced architecture which allows the MISO to file and support innovative rate making such as that sought by the ITC.”

The innovative rate making request was originally filed by the ITC with FERC in July 2000 and was approved in September 2000 when ITC was an Alliance RTO member. Since the filing of ITC’s innovative rates, the MISO and the Alliance RTO have settled on a common rate methodology which was approved by FERC on May 8, 2001. Re-filing of the innovative rates by MISO will assure transmission customers and potential ITC investors that the rates maintain regional appropriateness as it pertains to the MISO electric transmission region.

Welch cited a May 2001 Presidential Report as a strategic mandate to pursue innovative rates. The report stated: “There is a need to ensure that transmission rates create incentives for adequate investment in the transmission system, especially as restructuring leads to the creation of transmission companies whose only business is operation of transmission facilities. FERC recognizes this need and has expressed a willingness to consider innovative transmission pricing proposals.”

DTE Energy has previously announced its intentions to sell ITC as an independent transmission entity.

“These innovative rates are intended to attract the capital necessary to implement infrastructure improvements to the regional transmission grid, allowing electricity to be successfully imported into the peninsular State of Michigan,” Welch said. “The rates provide the type of essential incentives noted in the president’s energy strategy and necessary to spur investment in transmission network improvements.”

SOURCE: DTE Energy

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  • The Clarion Energy Content Team is made up of editors from various publications, including POWERGRID International, Power Engineering, Renewable Energy World, Hydro Review, Smart Energy International, and Power Engineering International. Contact the content lead for this publication at Jennifer.Runyon@ClarionEvents.com.

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The Clarion Energy Content Team is made up of editors from various publications, including POWERGRID International, Power Engineering, Renewable Energy World, Hydro Review, Smart Energy International, and Power Engineering International. Contact the content lead for this publication at Jennifer.Runyon@ClarionEvents.com.

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