By Beth Soholt on June 13, 2013
On June 7, 2013, the Seventh Circuit issued its eagerly anticipated decision on the MISO’s regional cost allocation rate design rules for multi-value projects (MVPs). MISO’s first set of MVPs are valued at more than $5.5 billion, and MISO justified them in part on state RPS and the need to transmit wind energy from remote locations to load centers.
The court upheld MISO’s MVP rate design, finding that the Illinois and Michigan (who appealed FERC’s approval of the MISO MVP cost allocation) had no persuasive evidence to counter MISO’s justification of regional cost allocation on the basis of regional benefits of delivering low-cost, cleaner power to market.
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