March 31, 2016
The Honorable Kimberly D. Bose
Secretary
Federal Energy Regulatory Commission
888 First Street, N.E.
Washington, DC 20426.
Re:
Midcontinent Independent System Operator, Inc. and
the MISO Transmission Owners, Docket No. ER16-_____
Revisions to Attachment GG
Dear Secretary Bose:
Pursuant to section 205 of the Federal Power Act (“FPA”), 16 U.S.C. § 824d, and
Part 35 of the Federal Energy Regulatory Commission’s (“FERC” or “Commission”)
regulations, 18 C.F.R. Part 35, Midcontinent Independent System Operator, Inc.
(“MISO”) and the MISO Transmission Owners1 (collectively with MISO, the “Filing
1
The MISO Transmission Owners for this filing consist of: Ameren Services
Company, as agent for Union Electric Company d/b/a Ameren Missouri, Ameren
Illinois Company d/b/a Ameren Illinois and Ameren Transmission Company of
Illinois; American Transmission Company LLC; Big Rivers Electric Corporation;
Central Minnesota Municipal Power Agency; City Water, Light & Power
(Springfield, IL); Cleco Power LLC; Dairyland Power Cooperative; Duke Energy
Business Services, LLC for Duke Energy Indiana, Inc.; East Texas Electric
Cooperative; Entergy Arkansas, Inc.; Entergy Louisiana, LLC; Entergy
Mississippi, Inc.; Entergy New Orleans, Inc.; Entergy Texas, Inc.; Great River
Energy; Hoosier Energy Rural Electric Cooperative, Inc.; Indiana Municipal
Power Agency; Indianapolis Power & Light Company; International Transmission
Company d/b/a ITCTransmission; ITC Midwest LLC; Michigan Electric
Transmission Company, LLC; MidAmerican Energy Company; Minnesota Power
(and its subsidiary Superior Water, L&P); Missouri River Energy Services;
Montana-Dakota Utilities Co.; Northern Indiana Public Service Company;
Northern States Power Company, a Minnesota corporation, and Northern States
Power Company, a Wisconsin corporation, subsidiaries of Xcel Energy Inc.;
Northwestern Wisconsin Electric Company; Otter Tail Power Company; Prairie
Power Inc.; South Mississippi Electric Power Association; Southern Illinois
Power Cooperative; Southern Indiana Gas & Electric Company (d/b/a Vectren
Energy Delivery of Indiana); Southern Minnesota Municipal Power Agency
(continued . . .)
The Honorable Kimberly D. Bose
March 31, 2016
Page 2
Parties”), submit revisions to Attachment GG of MISO’s Open Access Transmission,
Energy and Operating Reserve Markets Tariff (“Tariff”)2 in order to clarify certain crossreferences in Attachment GG as they relate to Attachment O-SMMPA. The Filing
Parties request an effective date for these revisions of April 1, 2016. Clean and redlined
versions of the revised Attachment GG are included as Exhibits I and II, respectively.
I.
BACKGROUND
Various provisions of MISO’s Tariff establish formula rates by which a
Transmission Owner can recover its revenue requirement and costs associated with
transmission facilities used to provide services under the MISO Tariff. 3 Transmission
Owners utilize different templates under Attachment O depending on whether they use
FERC Form No. 1, Energy Information Administration (“EIA”) Form 412, or Rural
Utilities Service (“RUS”) Form 12 data to calculate their annual transmission revenue
requirement.4
Tariff Attachment GG provides a means for the determination of the Network
Upgrade Charge associated with Network Upgrades that are not Multi-Value Projects as
defined in the Tariff. Attachment GG includes a generally-applicable rate formula
template for determining the applicable Network Upgrade Charge based on factors such
as a Transmission Owner’s Gross Transmission Plant, Net Transmission Plant, Return on
Rate Base, and expenses such as Taxes other than Income Tax. Attachment GG also
includes as Table 1 a cross-reference table identifying where in Attachment O specific
items are located, depending on whether the Transmission Owner uses FERC Form 1,
EIA Form 412, or RUS Form 12.
(. . . continued)
(“SMMPA”); Wabash Valley Power Association, Inc.; and Wolverine Power
Supply Cooperative, Inc.
2
MISO joins this filing as the Tariff administrator, but takes no position on the
substance of the filing.
3
See Tariff, Attachments O, GG, and MM.
4
While the EIA no longer requires the submission of Form 412, the Commission
has indicated that the continued use of Form 412 data is appropriate for
cooperative and municipal transmission owners.
See Midwest Indep.
Transmission Sys. Operator, Inc., 117 FERC ¶ 61,032, at P 5 (2006). In addition,
there are different templates for Transmission Owners using the EIA Form 412
and RUS Form 12 depending on whether the Transmission uses the non-levelized
or cash-flow method for deriving its revenue requirement.
The Honorable Kimberly D. Bose
March 31, 2016
Page 3
SMMPA is a joint action agency comprised of eighteen member municipalities in
Minnesota that own and operate municipal electric systems. SMMPA is also a non-profit
political subdivision of the State of Minnesota organized under Chapter 453 of the
Minnesota Statutes that is not subject to the Commission’s full jurisdiction. SMMPA
became a Transmission Owning Member of MISO effective April 1, 2006. The revenue
requirement for transmission service across SMMPA’s transmission facilities is
determined pursuant to a company-specific Attachment O-SMMPA using the EIA Form
412 cash-flow methodology5 as well as the generally-applicable Attachments GG and
MM. SMMPA’s revenue requirement under Attachment O-SMMPA is determined
June 1 of each year.6 SMMPA first began to recover its revenue requirement associated
with Network Upgrades pursuant to Attachment GG effective as of the beginning of its
June 1, 2015 – May 31, 2016 rate year, and did not recover any amounts pursuant to
Attachment GG effective prior to June 1, 2015.
II.
DESCRIPTION AND BASIS OF CHANGES
As currently drafted, Table 1 of Attachment GG contains references to the various
Attachment O templates. While the cross references in Attachment GG match the
Attachment O-SMMPA descriptions, SMMPA uses a company-specific variant of
Attachment O with line numbers for certain cost items in Attachment O-SMMPA that do
not match up with the line items under the Attachment O EIA Form 412 cash flow
template referenced in Attachment GG. Upon review of Attachment GG, the Filing
Parties have determined that two notations need to be added to Table 1 of Attachment
GG to clarify the line item cross-references to Attachment O-SMMPA. These changes
will ensure that the correct data from Attachment O-SMMPA is used to determine
SMMPA’s Attachment GG revenue requirement and that this data is pulled from the
intended lines of Attachment O-SMMPA. Specifically, Table 1, the column for EIA
Form 412 Cash Flow, references Page 2, Line 19, Col. 5, for Taxes Other Than Income
Taxes. While this refers to the correct portion of the generally-applicable Attachment O
Form 412 cash flow template, it does not reference the correct line of Attachment OSMMPA. Instead, the correct reference under Attachment O-SMMPA for Taxes Other
Than Income Taxes is to Page 2, Line 20, Col. 5. Accordingly, the Filing Parties have
amended Table 1 to add the note “The Taxes Other Than Income Taxes for SMMPA’s
EIA Form 412 Cash Flow Attachment O shall use Page 2, Line 20, Col. 5” to reference
5
Attachment O-SMMPA was initially accepted by the Commission in Midwest
Independent Transmission System Operator, Inc., 115 FERC ¶ 61,252, reh’g
denied, 117 FERC ¶ 61,104 (2006).
The currently-effective version of
Attachment O-SMMPA was accepted by the Commission in Midcontinent
Independent System Operator, Inc., Letter Order, Docket No. ER15-1490-000
(June 1, 2015).
6
See Tariff, Attachment O-SMMPA § II.B (Annual Update, Information
Exchange, and Challenge Procedures).
The Honorable Kimberly D. Bose
March 31, 2016
Page 4
the intended line of Attachment O-SMMPA. Similarly, Table 1, the column for EIA
Form 412 Cash Flow references Page 2, Line 11, Col. 5 and Page 2, Line 21, Col. 5, for
Return on Rate Base. While this refers to the correct portion of the generally-applicable
Attachment O Form 412 cash flow template, it does not reference the correct lines of
Attachment O-SMMPA. The correct references under Attachment O-SMMPA for
Return on Rate Base are to Page 2, Line 12, Col. 5 and Page 2, Line 22, Col. 5.
Accordingly, the Filing Parties have amended Table 1 to add the note “The Return on
Rate Base for SMMPA’s EIA Form 412 Cash Flow Attachment O shall use Page 2, Line
12, Col. 5 and Page 2, Line 22, Col. 5” to similarly reference the intended lines of
Attachment O-SMMPA.7
The Commission should accept these revisions to Attachment GG as just and
reasonable. While arguably a Tariff revision may not be needed as the cross reference
table already describes the costs to be included, the Filing Parties are submitting these
revisions to clarify the cross-references to a company-specific Attachment O-SMMPA
and eliminate any unnecessary future confusion. The revisions refer to the appropriate
lines under Attachment O-SMMPA to carry out the intent of the cross reference table,
which already correctly describes the costs to be included.
The Filing Parties also note that the incorrect reference to Taxes Other Than
Income did not have any impact on rates, because for SMMPA, the amounts in
Attachment O-SMMPA on Page 2, Line 19, Col. 5 are the same as on Page 2, Line 20,
Col. 5 of Attachment O-SMMPA.8 While the incorrect reference to Return on Rate Base
resulted in the overstatement in SMMPA’s revenue requirement under Attachment GG,
and the understatement of SMMPA’s revenue requirement under Attachment OSMMPA, this did not affect SMMPA’s total revenue requirement, because the revenue
requirement under Attachment O-SMMPA is offset by any revenues received under
Attachment GG.9 The MISO Transmission Owners understand that because these
corrections affect SMMPA’s revenue requirements under both Attachment O and
Attachment GG, MISO will incorporate these corrections into the rates under Attachment
O and GG for service taken in March, 2016, and will be make billing corrections back to
June 1, 2015. SMMPA did not recover any amounts associated with Attachment GG
prior to its June 1, 2015 – May 31, 2016 rate year.
7
In addition to these changes, the word “Note” in Table 1 has been changed to
“Notes” and minor formatting changes have been made.
8
See Informational Filing of Annual Formula Rate Update of Southern Minnesota
Municipal Power Agency, Docket No. ER16-1158-000, Attachment O-SMMPA,
page 2, lines 19-20 (Mar. 14, 2016) (populated Attachment O-SMMPA template
for rate year commencing June 1, 2015).
9
See Tariff, Attachment O-SMMPA, Page 2, Lines 24 and 25.
The Honorable Kimberly D. Bose
March 31, 2016
Page 5
III.
REQUESTED EFFECTIVE DATE
The Filing Parties request an effective date of April 1, 2016 for the revisions to
Attachment GG, and requests any waivers of the Commission’s notice requirements set
forth in 18 C.F.R. § 35.3 to allow this effective date. The Commission allows waiver of
its prior notice requirements when the changes either do not affect rates or reduce rates. 10
In this instance, the revisions to Attachment GG do not affect SMMPA’s overall recovery
of its revenue requirement, but simply affect the specific amounts that are recovered
under Attachments O and GG. Moreover, the Commission has granted waiver of its prior
notice requirements to help ensure the proper allocation of costs or correct Tariff errors.11
IV.
ADDITIONAL INFORMATION12
A.
Documents Submitted With This Filing
In addition to this transmittal letter, this filing includes the following:
Exhibit I – the revised portions of Attachment GG, in clean format; and
Exhibit II – the revised portions of Attachment GG, in redlined format.
B.
Service
MISO has served a copy of this filing electronically, including attachments, upon
all Tariff Customers, MISO Members, Member Representatives of Transmission Owners
and Non-Transmission Owners, the MISO Advisory Committee participants, as well as
state commissions within the Region, and the Organization of MISO States. In addition,
the filing has been posted electronically on MISO’s website at
10
See Midwest Indep. Transmission Sys. Operator, Inc., 138 FERC ¶ 61,069, at
P 13 (2012); Cent. Hudson Gas & Elec. Corp., 60 FERC ¶ 61,106, at 61,338
(1992) (indicating waiver is appropriate when filing does not change rates,
including changes in non-rate terms).
11
See S. Cal. Edison Co., 143 FERC ¶ 61,121, at P 13 (2013) (granting waiver of
the 60-day prior notice requirement “when prompt implementation would
facilitate the appropriate allocation of costs”); Black Hills Power, Inc., 112 FERC
¶ 61,318, at P 12 (2005) (granting waiver to correct error that resulted in utility
under-recovering its costs). If the Commission rejects the April 1, 2016 effective
date, the Filing Parties request that, consistent with 18 C.F.R. § 35.3, the
Commission allow the proposed changes to become effective as of June 1, 2016.
12
To the extent necessary, the Filing Parties requests waiver of the full requirements
of section 35.13, 18 C.F.R. § 35.13, as this filing simply corrects two crossreferences in Attachment GG.
The Honorable Kimberly D. Bose
March 31, 2016
Page 6
https://www.misoenergy.org/Library/FERCFilingsOrders/Pages/FERCFilings.aspx
other parties interested in this matter.
C.
for
Requisite Agreements
Consistent with Appendix K of the Agreement of Transmission Facilities Owners
to Organize the Midcontinent Independent System Operator, Inc., A Delaware Non-Stock
Corporation (“Owners Agreement”), Article III, a majority of the affected Owners has
approved the proposed revisions to Attachments GG.
D.
Requested Effective Date
As described above, the Filing Parties request an effective date of April 1, 2016
for the revisions contained in this filing.
E.
Communications
Correspondence and communications with respect to this filing should be sent to,
and the Filing Parties request the Secretary include on the official service list, the
following:13
V.
CONCLUSION
For the reasons stated herein, the Filing Parties request that the Commission
accept the proposed revisions to Attachment GG as just and reasonable, to be effective
April 1, 2016.
Matthew R. Dorsett
Attorney
Midcontinent Independent
System Operator, Inc.
P.O. Box 4202
Carmel, IN 46032-4202
Phone: (317) 249-5400
Fax: (317) 249-5912
[email protected]
Attorney for the Midcontinent
Independent System Operator, Inc.
13
Wendy N. Reed
David S. Berman
Wright & Talisman, P.C.
1200 G Street, N.W.
Suite 600
Washington, D.C. 20005
Phone: (202) 393-1200
Fax: (202) 393-1240
[email protected]
[email protected]
Attorneys for the MISO
Transmission Owners
To the extent necessary, the Filing Parties respectfully request waiver of Rule
203(b)(3) of the Commission’s Rules of Practice and Procedure, 18 C.F.R.
§ 385.203(b)(3), to permit all of the persons listed to be placed on the official
service list for this proceeding.
The Honorable Kimberly D. Bose
March 31, 2016
Page 7
Respectfully submitted,
/s/ David S. Berman
Wendy N. Reed
David S. Berman
Wright & Talisman, P.C.
Attorneys for the MISO
Transmission Owners
EXHIBIT I
MISO
FERC Electric Tariff
ATTACHMENTS
ATTACHMENT GG
Network Upgrade Charge
31.0.0
ATTACHMENT GG
NETWORK UPGRADE CHARGE
1.
Network Upgrade Cost Allocation:
This Attachment GG sets forth the method for calculating and collecting the charges associated with Network Upgrades and
for distributing the revenues associated with such charges. This Attachment applies to those Network Upgrades that are
determined under Attachment FF to be subject to this Attachment GG that are not subject to the cost recovery provisions of
Attachment N. The charges under this Attachment GG shall be in addition to any charges under Schedules 7, 8, 9, 26-A and
39.
2.
Determination of Network Upgrade Charge (“NUC”):
(a)
The Transmission Provider shall identify in this Attachment GG all Network Upgrades eligible under Attachment FF
that form the basis of the NUC. Such designations shall be the same as those made for the relevant Network Upgrades in the
MTEP. The NUC for each eligible project shall be its adjusted annual revenue requirement as computed in Section 3 below.
In conjunction with providing its annual Attachment O, each Transmission Owner and/or ITC shall furnish to the Transmission
Provider: (1) its NUC for each Network Upgrade subject to this Attachment GG as calculated below; and (2) its twelve (12)
monthly transmission system peaks determined in accordance with Attachment O.
Effective On: April 1, 2016
MISO
FERC Electric Tariff
ATTACHMENTS
ATTACHMENT GG
Network Upgrade Charge
31.0.0
(b)
The Transmission Provider shall apportion the NUC from (a) above in accordance with the applicable Attachment FF.
(c)
For purposes of preparing Attachment GG, each Transmission Owner and/or ITC must utilize the same test period that
is utilized in the preparation of its Attachment O.
(d)
Projects included in Attachment GG must be in-service prior to or during the test period indicated in (c) above. If the
Transmission Owner and/or ITC receives FERC approval to include specific Network Upgrades that are recorded in
construction work in progress (CWIP) but not yet in-service in the annual revenue requirement calculation, and the
Transmission Provider includes such Network Upgrades on Appendix A of the MISO Transmission Expansion Plan, those
projects may be included in Attachment GG provided the Transmission Owner and/or ITC supplies the Transmission Provider
with evidence of FERC approval.
(e)
In order to prevent over recovery of Attachment O revenue, the revenue requirement calculated pursuant to Attachment
GG (Attachment GG template, Page 2, Line 3, Column 10) will be subtracted by each Transmission Owner and ITC from their
respective Attachment O revenue requirement.
(f)
The Network Upgrade annual revenue requirement apportioned to a pricing zone shall be the sum of all Transmission
Owner and/or ITC’s NUCs for the pricing zone including those NUCs allocated on a system-wide basis to all pricing zones as
provided under Attachment FF, or to pricing zones in a specific Planning Area where a project terminates exclusively pursuant
to Attachment FF-6. The Transmission Provider shall calculate rates to be collected pursuant to Schedule 26 for each pricing
Effective On: April 1, 2016
MISO
FERC Electric Tariff
ATTACHMENTS
ATTACHMENT GG
Network Upgrade Charge
31.0.0
zone by taking the sum of the NUCs from the previous sentence and dividing by the current rate divisor1 from Attachment O,
Page 1, Line 15 in kW multiplied by 1000 to calculate an annual rate per MW.
The per-unit rates will be calculated as:
The monthly rate per MW will be the annual rate divided by 12
The weekly rate per MW will be the annual rate divided by 52
The On-Peak daily rate per MW will be the annual rate divided by 260 (capped at weekly rate)
The On-Peak hourly rate per MW will be the annual Rate divided by 4160 (capped at weekly and daily rates)
The Off-Peak daily rate per MW will be the annual rate divided by 365
The Off-Peak hourly per MW will be annual rate divided by 8760
(g)
Drive-through and drive-out Transmission Service shall be charged a rate that is (1) the sum of all Transmission Owner
and/or ITC NUCs apportioned to pricing zones divided by (2) the sum of the twelve (12) monthly transmission system peaks
from Section 2(a)(2) above for all pricing zones.
(h)
American Transmission Systems, Incorporated (ATSI) has withdrawn from the Transmission Provider and integrated
into PJM Interconnection, L.L.C. effective June 1, 2011.
(1)
Under Schedule 26, upon ATSI’s integration into PJM Interconnection, L.L.C. effective June 1, 2011,
Transmission Customers taking Transmission Service pay a portion of the revenue requirements of MTEP
Effective On: April 1, 2016
MISO
FERC Electric Tariff
ATTACHMENTS
ATTACHMENT GG
Network Upgrade Charge
31.0.0
Projects (as defined in Schedule 37) approved by the Transmission Provider Board for construction by ATSI.
Under Schedule 38, Duke Energy Ohio, Inc. (DEO) and Duke Energy Kentucky, Inc. (DEK) (or transmission
customers in PJM's DEOK Zone as more fully described in Appendix 1 to Schedule 38) make comparable
payments. As a result of ATSI’s withdrawal from the Transmission Provider, effective June 1, 2011, this
portion of the revenue requirements of MTEP Projects (as defined in Schedule 37) approved by the
Transmission Provider Board for construction by ATSI, will no longer be calculated under this Attachment GG,
and will be calculated under Schedule 37. This revenue requirement (as determined in Schedule 37, Section IV)
will be included in the determination of the NUC under this Attachment GG for charges and revenue
distributions under Schedules 26, 37 and 38.
(2)
Likewise, under Schedule 37, effective June 1, 2011, ATSI (as defined in Schedule 37) is responsible for paying
a portion of the revenue requirements of MTEP Projects (as defined in Schedule 37) approved by the
Transmission Provider Board for construction by MISO Transmission Owners (as defined in Schedule 37). As
a result of ATSI’s withdrawal from the Transmission Provider, effective June 1, 2011, rates for ATSI (as
defined in Schedule 37) will no longer be calculated under this Attachment GG or Schedule 26.
(3)
The annual revenue requirement reflecting the ongoing financial obligation of ATSI (as defined in Schedule 37)
payable to the MISO Transmission Owners (as defined in Schedule 37) will be calculated in accordance with
Effective On: April 1, 2016
MISO
FERC Electric Tariff
ATTACHMENTS
ATTACHMENT GG
Network Upgrade Charge
31.0.0
this Attachment GG and Schedule 26 and included in the calculation of the Schedule 26 Drive-through and
drive-out Transmission Service rates described in 2(g) above.
(4)
The revenue requirement reflecting the various MISO Zones' (as defined in Schedule 37) obligation to ATSI (as
defined in Schedule 37), calculated pursuant to Schedule 37, will be included in the Schedule 26 zonal rate
calculations but will be excluded from the Schedule 26 Drive-through and drive-out Transmission Service rates
described in 2(g) above.
(5)
ATSI (as defined in Schedule 37) will no longer receive a pro rata share of the Schedule 26 revenues collected
by the Transmission Provider related to Drive-through and drive-out Point-to-Point Transmission Service
reservations.
(i)
DEO and DEK have withdrawn from the Transmission Provider and integrated into PJM Interconnection, L.L.C.
effective January 1, 2012.
(1)
Under Schedule 26, upon DEO and DEK’s (as defined in Schedule 38) integration into PJM Interconnection,
L.L.C. effective January 1, 2012, Transmission Customers taking Transmission Service pay a portion of the
revenue requirements of MTEP Projects (as defined in Schedule 38) approved by the Transmission Provider
Board for construction by DEO and DEK. Under Schedule 37, upon DEO and DEK’s integration into PJM
Interconnection, L.L.C. effective January 1, 2012, ATSI makes a comparable payment. Effective January 1,
Effective On: April 1, 2016
MISO
FERC Electric Tariff
ATTACHMENTS
ATTACHMENT GG
Network Upgrade Charge
31.0.0
2012, revenue requirements of MTEP Projects (as defined in Schedule 38) of DEO and DEK will no longer be
calculated under this Attachment GG and will be calculated pursuant to Schedule 38. This revenue requirement
(as determined in Schedule 38, Section IV) will be included in the determination of the NUC under this
Attachment GG for charges and revenue distributions under Schedules 26, 37 and 38.
(2)
Likewise, under Schedule 38, effective January 1, 2012, DEO and DEK are responsible for paying a portion of
the revenue requirements of MTEP Projects (as defined in Schedule 38) approved by the Transmission Provider
Board for construction by MISO Transmission Owners and ATSI.
(3)
The annual revenue requirement reflecting the ongoing financial obligation of DEO and DEK payable to the
MISO Transmission Owners and ATSI calculated in accordance with this Attachment GG and Schedules 37
and 38 will be included in the calculation of the Schedule 26 Drive-through and drive-out Transmission Service
rates described in 2(g) above.
(4)
The revenue requirement reflecting the various Transmission Provider zones’ obligation and ATSI’s obligation
to DEO and DEK, calculated pursuant to Schedule 38, will be included in the Schedule 26 zonal rate
calculations but will be excluded from the Schedule 26 Drive-through and drive-out Transmission Service rates
described in 2(g) above.
Effective On: April 1, 2016
MISO
FERC Electric Tariff
ATTACHMENTS
(5)
ATTACHMENT GG
Network Upgrade Charge
31.0.0
DEO and DEK will no longer receive a pro rata share of the Schedule 26 revenues collected by the
Transmission Provider related to Drive-through and drive-out Point-to-Point Transmission Service reservations.
3.
Calculation of the NUC:
(a)
The NUC shall be allocated as follows:
(1)
Annual Allocation Factors shall be calculated for the following five (5) cost of service elements, expressed as a
percentage, using the formulae included in this Attachment GG which utilizes select entries from the currently
effective Attachment O:
(2)
a.
Operation and Maintenance Expense
b.
General and Common Depreciation Expense
c.
Taxes Other Than Income Taxes
d.
Income Taxes
e.
Return
Subsections (3) through (9) describe the calculation of the Annual Allocation Factors using references to the
Attachment O, FERC Form 1, formula rate. Table 1 provides the cross-references to RUS Form 12 and EIA
Form 412 versions of Attachment O to calculate the Annual Allocation Factors for publicly-owned
Effective On: April 1, 2016
MISO
FERC Electric Tariff
ATTACHMENTS
ATTACHMENT GG
Network Upgrade Charge
31.0.0
Transmission Owners.
(3)
The Operation and Maintenance Annual Allocation Factor shall be determined by dividing the amount included
on Attachment O, Page 3, Line 8, Column 5 by the amount of Gross Transmission Plant In-Service included on
Attachment O, Page 2, Line 2, Column 5. The Gross Transmission Plant In-Service shall include any CWIP
including in Rate Base, if applicable.
(4)
The General and Common Depreciation Expense Annual Allocation Factor shall be determined by dividing the
amount included on Attachment O, Page 3, Lines 10 & 11, Column 5 by the amount of Gross Transmission
Plant In-Service included on Attachment O, Page 2, Line 2, Column 5. The Gross Transmission Plant InService shall include any CWIP included in Rate Base, if applicable.
(5)
The Taxes Other Than Income Taxes Annual Allocation Factor shall be determined by dividing the amount
included on Attachment O, Page 3, Line 20, Column 5 by the amount of Gross Transmission Plant In-Service
included on Attachment O, Page 2, Line 2, Column 5. The Gross Transmission Plant In-Service shall include
any CWIP included in Rate Base, if applicable.
(6)
The Annual Allocation Factor for Expense shall be the sum of (3), (4) and (5) above.
(7)
The Income Tax Annual Allocation Factor shall be determined by dividing the amount included on Attachments
O, Page 3, Line 27, Column 5 by the amount included for the Net Transmission Plant In-Service Attachment O,
Effective On: April 1, 2016
MISO
FERC Electric Tariff
ATTACHMENTS
ATTACHMENT GG
Network Upgrade Charge
31.0.0
Page 2, Line 14, Column 5. The Net Transmission Plant In-Service shall include any CWIP included in Rate
Base if applicable.
This component shall be zero for publicly-owned Transmission Owners.
(8)
The Return Annual Allocation Factor shall be determined by dividing the amount included on Attachment O,
Page 3, Line 28, Column 5 by the amount of Net Transmission Plant In-Service included on Attachment O,
Page 2, Line 14, Column 5. The Net Transmission Plant In-Service shall include any CWIP included in Rate
Base, if applicable.
(9)
The Annual Allocation Factor for Return shall be the sum of (7) and (8) above.
(10)
The NUC to be used in Schedule 26 for each individual project subject to this Attachment GG shall be the sum
of the project’s Annual Expense Charge plus the project’s Annual Return Charge plus the Project’s
Depreciation Expense plus any applicable True-Up Adjustment, where:
a.
Annual Expense Charge equals the project’s Gross Plant multiplied by the Annual Allocation Factor for
Expense calculated in (6) above;
b.
Annual Return Charge equals the project’s Net Plant multiplied by the Annual Allocation Factor for
Return calculated in (9) above;
c.
Depreciation Expense equals the actual value booked, or projected to be booked for forward-looking
Effective On: April 1, 2016
MISO
FERC Electric Tariff
ATTACHMENTS
ATTACHMENT GG
Network Upgrade Charge
31.0.0
rate periods, for the project and included in Attachment O, Page 3, Line 12, column 5. Only
Transmission Owners and/or ITCs that have received Commission approval to use a forward-looking
test period to determine Attachment O rates may use projected values;
d.
True-Up Adjustment equals any applicable Attachment GG true-up amount calculated under a FERCaccepted mechanism for a particular Transmission Owner; and
e.
The project’s Gross Plant and Net Plant values shall be the respective balances for the facilities
comprising the project as incorporated in the Gross Plant values from Attachment O as identified in (3),
(4) and (5) above and Net Plant values from Attachment O as identified in (7) and (8) above. These
balances shall reflect any retirements or subsequent like kind replacements associated with the ongoing
maintenance of the facilities identified in the project.
(11)
Each individual project shall be identified separately as a sub-row of line 1 on page 2 of the Attachment GG
template attached, to be identified as line 1a, 1b, etc. The Transmission Owner shall add additional sub-rows to
line 1 as needed to accommodate additional projects.
(Note: An example of the operation of this NUC mechanism is appended to this Attachment GG after the Attachment GG
Rate Formula Template)
(b)
Nothing contained in this Attachment GG shall limit the right of an ITC and/or Transmission Owner under Section 205
Effective On: April 1, 2016
MISO
FERC Electric Tariff
ATTACHMENTS
ATTACHMENT GG
Network Upgrade Charge
31.0.0
of the Federal Power Act and consistent with the ISO Agreement to file with the Commission individually and unilaterally to
recover the cost of a Network Upgrade in a manner other than that specified in this Attachment GG, including, but not limited
to recover rate incentives not specified herein and to recover the cost of Network Upgrades through its pricing zone rates under
Schedules 7, 8, and 9 as calculated pursuant to Attachment O.
4.
Network Upgrades Recovered under Attachment O
Subject to agreement between or among the Transmission Owner and/or ITCs constructing, owning or financing the Network
Upgrade within the affected pricing zone(s), to the extent that one Transmission Owner and/or ITC completes a Network
Upgrade that benefits Transmission Customers in one or more additional pricing zones separate from those upgrades accruing
benefits only to the individual Transmission Owner and/or ITC pricing zone and in the event the Network Upgrade is not
recorded on the books of the Transmission Owner and/or ITC as transmission plant subject to recovery in state and federal
rates, a regulatory asset will be set up on the accounting systems for each affected Transmission Owner and/or ITC equivalent
to its share of the Network Upgrade costs. The regulatory asset will be recognized as a new Line 29a on Page 2 of Attachment
O subject to regulatory approval revising Attachment O as such. Such regulatory asset will be subject to the average
depreciation rate of the pricing zone’s other transmission plant. To the extent that adjacent Transmission Owner and/or ITCs
construct and own portions of a Network Upgrade, the regulatory asset methodology described herein shall be used
to allocate these costs to match the benefits accruing to those Transmission Customers to the greatest extent practicable.
Effective On: April 1, 2016
MISO
FERC Electric Tariff
ATTACHMENTS
Formula Rate calculation
ATTACHMENT GG
Network Upgrade Charge
31.0.0
Rate Formula Template
Utilizing Attachment O Data
Attachment GG - Generic
For the 12 months ended 12/31/__
Page 1 of 2
MISO Generic Company
To be completed in conjunction with Attachment O.
(1)
(2)
(3)
(4)
Attachment O
Line
Page, Line, Col.
Transmission
Allocator
No.
1
Gross Transmission Plant – Total
Attach O, Page 2, Line 2, Col. 5 (Note A)
0
2
Net Transmission Plant – Total
Attach O, Page 2, Lines 14 and 23b, Col. 5 (Note B)
0
O&M EXPENSE
3
Total O&M Allocated to Transmission
Attach O, Page 3, Line 8, Col. 5
0
4
Annual Allocation Factor for O&M
(Line 3 divided by Line 1, Col. 3)
0.00%
0.00%
GENERAL AND COMMON (G&C) DEPRECIATION EXPENSE
5
Total G&C Depreciation Expense
6
Annual Allocation Factor for G&C Depreciation Expense
Attach O, Page 3, Lines 10 & 11, Col. 5 (Note H)
(Line 5 divided by Line 1, Col. 3)
0
0.00%
0.00%
Effective On: April 1, 2016
MISO
FERC Electric Tariff
ATTACHMENTS
ATTACHMENT GG
Network Upgrade Charge
31.0.0
TAXES OTHER THAN INCOME TAXES
7
Total Other Taxes
8
Annual Allocation Factor for Other Taxes
9
Annual Allocation Factor for Expense
Attach O, Page 3, Line 20, Col. 5
(Line 7 divided by Line 1, Col. 3)
0
0.00%
Sum of lines 4, 6 & 8
0.00%
0.00%
INCOME TAXES
10
Total Income Taxes
Attach O, Page 3, Line 27, Col. 5
0
11
Annual Allocation Factor for Income Taxes
(Line 10 divided by Line 2, Col. 3)
0.00%
0.00%
RETURN
12
Return on Rate Base
Attach O, Page 3, Line 28, Col. 5
0
13
Annual Allocation Factor for Return on Rate Base
(Line 12 divided by Line 2, Col. 3)
0.00%
14
Annual Allocation Factor for Return
Sum of lines 11 & 13
0.00%
0.00%
Effective On: April 1, 2016
MISO
FERC Electric Tariff
ATTACHMENTS
ATTACHMENT GG
Network Upgrade Charge
31.0.0
Attachment GG - Generic
Formula Rate calculation
Rate Formula Template
For the 12 months ended 12/31/__
Utilizing Attachment O Data
Page 2 of 2
MISO Generic Company
Network Upgrade Charge Calculation by Project
(1)
(2)
(3)
(4)
(5)
(6)
Annual
MTEP
Line
No.
Project Name
Project
Project Gross
Number
Plant
(7)
(8)
(9)
Allocation
Annual
Project
(10)
(11)
(12)
Annual
Allocation
Annual
Factor for
Expense
Project Net
Factor for
Return
Depreciation
Expense
Charge
Plant
Return
Charge
Expense
Network
Annual Revenue
Requirement
True-Up
Adjustment
Upgrade
Charge
Sum Col. 10 & 11
(Note C)
(Page 1, Line 9)
(Col. 3 * Col. 4)
(Note D)
(Page 1, Line 14) (Col. 6 * Col. 7)
(Note E)
(Sum Col. 5, 8 & 9)
(Note F)
(Note G)
1a
Project 1
P1
$0
0.00%
$0
$0
0.00%
$0
$0
$0
$0
$0
1b
Project 2
P2
$0
0.00%
$0
$0
0.00%
$0
$0
$0
$0
$0
1c
Project 3
P3
$0
0.00%
$0
$0
0.00%
$0
$0
$0
$0
$0
2
Annual Totals
$0
3
Rev. Req. Adj for Attachment O
$0
$0
$0
Effective On: April 1, 2016
MISO
FERC Electric Tariff
ATTACHMENTS
Note
Letter
A
ATTACHMENT GG
Network Upgrade Charge
31.0.0
Gross Transmission Plant is that identified on Page 2, Line 2 of Attachment O and includes any sub lines 2a or 2b etc. and is inclusive of any CWIP included in rate base when authorized by FERC order less any
prefunded AFUDC, if applicable.
B
Net Transmission Plant is that identified on Page 2, Line 14 of Attachment O and includes any sub lines 14a or 14b etc. and is inclusive of any CWIP included in rate base when authorized by FERC order less any
prefunded AFUDC, if applicable.
C
Project Gross Plant is the total capital investment for the project calculated in the same method as the gross plant value in Line 1 and includes CWIP in rate base less any prefunded AFUDC, if applicable. This value
includes subsequent capital investments required to maintain the facilities to their original capabilities.
D
Project Net Plant is the Project Gross Plant Identified in Column 3 less the associated Accumulated Depreciation.
E
Project Depreciation Expense is the actual value booked for the project and included in the Depreciation Expense in Attachment O, Page 3, Line 12.
F
True-Up Adjustment is included pursuant to a FERC approved methodology, if applicable.
G
The Network Upgrade Charge is the value to be used in Schedules 26, 37 and 38.
H
The Total General and Common Depreciation Expense excludes any depreciation expense directly associated with a project and thereby included in Page 2, Column 9.
Effective On: April 1, 2016
MISO
FERC Electric Tariff
ATTACHMENTS
ATTACHMENT GG
Network Upgrade Charge
31.0.0
Table 1
Cross Reference to Attachment O for Completion of Attachment GG
Attachment GG
FERC Form 1
EIA Form 412 Non-Levelized
EIA Form 412 Cash Flow
RUS Form 12 Non-Levelized
RUS Form 12 Cash Flow
Gross Transmission Plant
Page 1, Line 1, Col. 3
Page 2, Line 2, Col. 5
Page 2, Line 2, Col. 5
Page 3, Line 2, Col. 5
Page 2, Line 2, Col. 5
Page 3, Line 2, Col. 5
Net Transmission Plant*
Page 1, Line 2, Col. 3
Page 2, Line 14, Col. 5
Page 2, Line 14, Col. 5
Page 3, Line 2, Col. 5
Page 2, Line 14, Col. 5
Page 3, Line 2, Col. 5
O&M Expense
Page 1, Line 3, Col. 3
Page 3, Line 8, Col. 5
Page 3, Line 8, Col. 5
Page 2, Line 8, Col. 5
Page 3, Line 8, Col. 5
Page 2, Line 8, Col. 5
Depreciation Expense
Page 1, Line 5, Col. 3
P. 3, Lines 10&11, Col. 5 P. 3, Lines 10&11, Col. 5
N/A
Page 3, Lines 10 & 11, Col. 5
N/A
Taxes Other Than Income Taxes
Page 1, Line 7, Col. 3
Page 3, Line 20, Col. 5
Page 3, Line 20, Col. 5
Page 2, Line 19, Col. 5**
Page 3, Line 20, Col. 5
Page 2, Line 19, Col. 5
Total Income Taxes
Page 1, Line 10, Col. 3
Page 3, Line 27, Col. 5
Page 3, Line 27, Col. 5
N/A
Page 3, Line 27, Col. 5
N/A
Return on Rate Base
Page 1, Line 12, Col. 3
Page 3, Line 28, Col. 5
Page 3, Line 28, Col. 5
Page 2, Line 11, Col. 5 &
Page 3, Line 28, Col. 5
Page 2, Line 11, Col. 5 &
General and Common
Page 2, Line 21, Col. 5***
Page 2, Line
21, Col. 5
Notes:
*
The Net Transmission Plant for Transmission Owners using an Attachment O based on either EIA Form 412 Cash Flow or RUS Form 12 Cash Flow shall use their Gross Transmission Plant from Page 2, Line 2, Column 5 for
a Net Transmission Plant value. These two Attachment Os do not allow for the recovery of depreciation expense nor do they decrement rate base for accumulated depreciation, therefore to maintain a consistent methodology
between Attachment O and Attachment GG no depreciation expense would be recovered under Attachment GG nor would any accumulated depreciation be included in the calculation of the Net Transmission Plant balances.
**
The Taxes Other Than Income Taxes for SMMPA’s EIA Form 412 Cash Flow Attachment O shall use Page 2, Line 20, Col. 5 .
***
The Return on Rate Base for SMMPA’s EIA Form 412 Cash Flow Attachment O shall use Page 2, Line 12, Col. 5 and Page 2, Line 22, Col. 5.
Effective On: April 1, 2016
MISO
FERC Electric Tariff
ATTACHMENTS
ATTACHMENT GG
Network Upgrade Charge
31.0.0
Table 2
Transmission Expansion Projects Authorized for Network Upgrade Charge
(reserved )
1
Loads that are included in the Attachment O rate divisor for the NSP Companies’ pricing zone (zone 16), but are located in the
OTP load balancing area and are charged the applicable OTP pricing zone (zone 18) Schedule 26 rate, shall be excluded from the zone
16 Schedule 26 rate divisor and included in the zone 18 Schedule 26 rate divisor for purposes of calculating the Schedule 26 rates in
zones 16 and 18.
Effective On: April 1, 2016
EXHIBIT II
MISO
FERC Electric Tariff
ATTACHMENTS
ATTACHMENT GG
Network Upgrade Charge
30.0.0, 31.0.0
ATTACHMENT GG
NETWORK UPGRADE CHARGE
1.
Network Upgrade Cost Allocation:
This Attachment GG sets forth the method for calculating and collecting the charges associated with Network Upgrades and
for distributing the revenues associated with such charges. This Attachment applies to those Network Upgrades that are
determined under Attachment FF to be subject to this Attachment GG that are not subject to the cost recovery provisions of
Attachment N. The charges under this Attachment GG shall be in addition to any charges under Schedules 7, 8, 9, 26-A and
39.
2.
Determination of Network Upgrade Charge (“NUC”):
(a)
The Transmission Provider shall identify in this Attachment GG all Network Upgrades eligible under Attachment FF
that form the basis of the NUC. Such designations shall be the same as those made for the relevant Network Upgrades in the
MTEP. The NUC for each eligible project shall be its adjusted annual revenue requirement as computed in Section 3 below.
In conjunction with providing its annual Attachment O, each Transmission Owner and/or ITC shall furnish to the Transmission
Provider: (1) its NUC for each Network Upgrade subject to this Attachment GG as calculated below; and (2) its twelve (12)
monthly transmission system peaks determined in accordance with Attachment O.
Effective On: April 1, 2016
MISO
FERC Electric Tariff
ATTACHMENTS
ATTACHMENT GG
Network Upgrade Charge
30.0.0, 31.0.0
(b)
The Transmission Provider shall apportion the NUC from (a) above in accordance with the applicable Attachment FF.
(c)
For purposes of preparing Attachment GG, each Transmission Owner and/or ITC must utilize the same test period that
is utilized in the preparation of its Attachment O.
(d)
Projects included in Attachment GG must be in-service prior to or during the test period indicated in (c) above. If the
Transmission Owner and/or ITC receives FERC approval to include specific Network Upgrades that are recorded in
construction work in progress (CWIP) but not yet in-service in the annual revenue requirement calculation, and the
Transmission Provider includes such Network Upgrades on Appendix A of the MISO Transmission Expansion Plan, those
projects may be included in Attachment GG provided the Transmission Owner and/or ITC supplies the Transmission Provider
with evidence of FERC approval.
(e)
In order to prevent over recovery of Attachment O revenue, the revenue requirement calculated pursuant to Attachment
GG (Attachment GG template, Page 2, Line 3, Column 10) will be subtracted by each Transmission Owner and ITC from their
respective Attachment O revenue requirement.
(f)
The Network Upgrade annual revenue requirement apportioned to a pricing zone shall be the sum of all Transmission
Owner and/or ITC’s NUCs for the pricing zone including those NUCs allocated on a system-wide basis to all pricing zones as
provided under Attachment FF, or to pricing zones in a specific Planning Area where a project terminates exclusively pursuant
to Attachment FF-6. The Transmission Provider shall calculate rates to be collected pursuant to Schedule 26 for each pricing
Effective On: April 1, 2016
MISO
FERC Electric Tariff
ATTACHMENTS
ATTACHMENT GG
Network Upgrade Charge
30.0.0, 31.0.0
zone by taking the sum of the NUCs from the previous sentence and dividing by the current rate divisor1 from Attachment O,
Page 1, Line 15 in kW multiplied by 1000 to calculate an annual rate per MW.
The per-unit rates will be calculated as:
The monthly rate per MW will be the annual rate divided by 12
The weekly rate per MW will be the annual rate divided by 52
The On-Peak daily rate per MW will be the annual rate divided by 260 (capped at weekly rate)
The On-Peak hourly rate per MW will be the annual Rate divided by 4160 (capped at weekly and daily rates)
The Off-Peak daily rate per MW will be the annual rate divided by 365
The Off-Peak hourly per MW will be annual rate divided by 8760
(g)
Drive-through and drive-out Transmission Service shall be charged a rate that is (1) the sum of all Transmission Owner
and/or ITC NUCs apportioned to pricing zones divided by (2) the sum of the twelve (12) monthly transmission system peaks
from Section 2(a)(2) above for all pricing zones.
(h)
American Transmission Systems, Incorporated (ATSI) has withdrawn from the Transmission Provider and integrated
into PJM Interconnection, L.L.C. effective June 1, 2011.
(1)
Under Schedule 26, upon ATSI’s integration into PJM Interconnection, L.L.C. effective June 1, 2011,
Transmission Customers taking Transmission Service pay a portion of the revenue requirements of MTEP
Effective On: April 1, 2016
MISO
FERC Electric Tariff
ATTACHMENTS
ATTACHMENT GG
Network Upgrade Charge
30.0.0, 31.0.0
Projects (as defined in Schedule 37) approved by the Transmission Provider Board for construction by ATSI.
Under Schedule 38, Duke Energy Ohio, Inc. (DEO) and Duke Energy Kentucky, Inc. (DEK) (or transmission
customers in PJM's DEOK Zone as more fully described in Appendix 1 to Schedule 38) make comparable
payments. As a result of ATSI’s withdrawal from the Transmission Provider, effective June 1, 2011, this
portion of the revenue requirements of MTEP Projects (as defined in Schedule 37) approved by the
Transmission Provider Board for construction by ATSI, will no longer be calculated under this Attachment GG,
and will be calculated under Schedule 37. This revenue requirement (as determined in Schedule 37, Section IV)
will be included in the determination of the NUC under this Attachment GG for charges and revenue
distributions under Schedules 26, 37 and 38.
(2)
Likewise, under Schedule 37, effective June 1, 2011, ATSI (as defined in Schedule 37) is responsible for paying
a portion of the revenue requirements of MTEP Projects (as defined in Schedule 37) approved by the
Transmission Provider Board for construction by MISO Transmission Owners (as defined in Schedule 37). As
a result of ATSI’s withdrawal from the Transmission Provider, effective June 1, 2011, rates for ATSI (as
defined in Schedule 37) will no longer be calculated under this Attachment GG or Schedule 26.
(3)
The annual revenue requirement reflecting the ongoing financial obligation of ATSI (as defined in Schedule 37)
payable to the MISO Transmission Owners (as defined in Schedule 37) will be calculated in accordance with
Effective On: April 1, 2016
MISO
FERC Electric Tariff
ATTACHMENTS
ATTACHMENT GG
Network Upgrade Charge
30.0.0, 31.0.0
this Attachment GG and Schedule 26 and included in the calculation of the Schedule 26 Drive-through and
drive-out Transmission Service rates described in 2(g) above.
(4)
The revenue requirement reflecting the various MISO Zones' (as defined in Schedule 37) obligation to ATSI (as
defined in Schedule 37), calculated pursuant to Schedule 37, will be included in the Schedule 26 zonal rate
calculations but will be excluded from the Schedule 26 Drive-through and drive-out Transmission Service rates
described in 2(g) above.
(5)
ATSI (as defined in Schedule 37) will no longer receive a pro rata share of the Schedule 26 revenues collected
by the Transmission Provider related to Drive-through and drive-out Point-to-Point Transmission Service
reservations.
(i)
DEO and DEK have withdrawn from the Transmission Provider and integrated into PJM Interconnection, L.L.C.
effective January 1, 2012.
(1)
Under Schedule 26, upon DEO and DEK’s (as defined in Schedule 38) integration into PJM Interconnection,
L.L.C. effective January 1, 2012, Transmission Customers taking Transmission Service pay a portion of the
revenue requirements of MTEP Projects (as defined in Schedule 38) approved by the Transmission Provider
Board for construction by DEO and DEK. Under Schedule 37, upon DEO and DEK’s integration into PJM
Interconnection, L.L.C. effective January 1, 2012, ATSI makes a comparable payment. Effective January 1,
Effective On: April 1, 2016
MISO
FERC Electric Tariff
ATTACHMENTS
ATTACHMENT GG
Network Upgrade Charge
30.0.0, 31.0.0
2012, revenue requirements of MTEP Projects (as defined in Schedule 38) of DEO and DEK will no longer be
calculated under this Attachment GG and will be calculated pursuant to Schedule 38. This revenue requirement
(as determined in Schedule 38, Section IV) will be included in the determination of the NUC under this
Attachment GG for charges and revenue distributions under Schedules 26, 37 and 38.
(2)
Likewise, under Schedule 38, effective January 1, 2012, DEO and DEK are responsible for paying a portion of
the revenue requirements of MTEP Projects (as defined in Schedule 38) approved by the Transmission Provider
Board for construction by MISO Transmission Owners and ATSI.
(3)
The annual revenue requirement reflecting the ongoing financial obligation of DEO and DEK payable to the
MISO Transmission Owners and ATSI calculated in accordance with this Attachment GG and Schedules 37
and 38 will be included in the calculation of the Schedule 26 Drive-through and drive-out Transmission Service
rates described in 2(g) above.
(4)
The revenue requirement reflecting the various Transmission Provider zones’ obligation and ATSI’s obligation
to DEO and DEK, calculated pursuant to Schedule 38, will be included in the Schedule 26 zonal rate
calculations but will be excluded from the Schedule 26 Drive-through and drive-out Transmission Service rates
described in 2(g) above.
Effective On: April 1, 2016
MISO
FERC Electric Tariff
ATTACHMENTS
(5)
ATTACHMENT GG
Network Upgrade Charge
30.0.0, 31.0.0
DEO and DEK will no longer receive a pro rata share of the Schedule 26 revenues collected by the
Transmission Provider related to Drive-through and drive-out Point-to-Point Transmission Service reservations.
3.
Calculation of the NUC:
(a)
The NUC shall be allocated as follows:
(1)
Annual Allocation Factors shall be calculated for the following five (5) cost of service elements, expressed as a
percentage, using the formulae included in this Attachment GG which utilizes select entries from the currently
effective Attachment O:
(2)
a.
Operation and Maintenance Expense
b.
General and Common Depreciation Expense
c.
Taxes Other Than Income Taxes
d.
Income Taxes
e.
Return
Subsections (3) through (9) describe the calculation of the Annual Allocation Factors using references to the
Attachment O, FERC Form 1, formula rate. Table 1 provides the cross-references to RUS Form 12 and EIA
Form 412 versions of Attachment O to calculate the Annual Allocation Factors for publicly-owned
Effective On: April 1, 2016
MISO
FERC Electric Tariff
ATTACHMENTS
ATTACHMENT GG
Network Upgrade Charge
30.0.0, 31.0.0
Transmission Owners.
(3)
The Operation and Maintenance Annual Allocation Factor shall be determined by dividing the amount included
on Attachment O, Page 3, Line 8, Column 5 by the amount of Gross Transmission Plant In-Service included on
Attachment O, Page 2, Line 2, Column 5. The Gross Transmission Plant In-Service shall include any CWIP
including in Rate Base, if applicable.
(4)
The General and Common Depreciation Expense Annual Allocation Factor shall be determined by dividing the
amount included on Attachment O, Page 3, Lines 10 & 11, Column 5 by the amount of Gross Transmission
Plant In-Service included on Attachment O, Page 2, Line 2, Column 5. The Gross Transmission Plant InService shall include any CWIP included in Rate Base, if applicable.
(5)
The Taxes Other Than Income Taxes Annual Allocation Factor shall be determined by dividing the amount
included on Attachment O, Page 3, Line 20, Column 5 by the amount of Gross Transmission Plant In-Service
included on Attachment O, Page 2, Line 2, Column 5. The Gross Transmission Plant In-Service shall include
any CWIP included in Rate Base, if applicable.
(6)
The Annual Allocation Factor for Expense shall be the sum of (3), (4) and (5) above.
(7)
The Income Tax Annual Allocation Factor shall be determined by dividing the amount included on Attachments
O, Page 3, Line 27, Column 5 by the amount included for the Net Transmission Plant In-Service Attachment O,
Effective On: April 1, 2016
MISO
FERC Electric Tariff
ATTACHMENTS
ATTACHMENT GG
Network Upgrade Charge
30.0.0, 31.0.0
Page 2, Line 14, Column 5. The Net Transmission Plant In-Service shall include any CWIP included in Rate
Base if applicable.
This component shall be zero for publicly-owned Transmission Owners.
(8)
The Return Annual Allocation Factor shall be determined by dividing the amount included on Attachment O,
Page 3, Line 28, Column 5 by the amount of Net Transmission Plant In-Service included on Attachment O,
Page 2, Line 14, Column 5. The Net Transmission Plant In-Service shall include any CWIP included in Rate
Base, if applicable.
(9)
The Annual Allocation Factor for Return shall be the sum of (7) and (8) above.
(10)
The NUC to be used in Schedule 26 for each individual project subject to this Attachment GG shall be the sum
of the project’s Annual Expense Charge plus the project’s Annual Return Charge plus the Project’s
Depreciation Expense plus any applicable True-Up Adjustment, where:
a.
Annual Expense Charge equals the project’s Gross Plant multiplied by the Annual Allocation Factor for
Expense calculated in (6) above;
b.
Annual Return Charge equals the project’s Net Plant multiplied by the Annual Allocation Factor for
Return calculated in (9) above;
c.
Depreciation Expense equals the actual value booked, or projected to be booked for forward-looking
Effective On: April 1, 2016
MISO
FERC Electric Tariff
ATTACHMENTS
ATTACHMENT GG
Network Upgrade Charge
30.0.0, 31.0.0
rate periods, for the project and included in Attachment O, Page 3, Line 12, column 5. Only
Transmission Owners and/or ITCs that have received Commission approval to use a forward-looking
test period to determine Attachment O rates may use projected values;
d.
True-Up Adjustment equals any applicable Attachment GG true-up amount calculated under a FERCaccepted mechanism for a particular Transmission Owner; and
e.
The project’s Gross Plant and Net Plant values shall be the respective balances for the facilities
comprising the project as incorporated in the Gross Plant values from Attachment O as identified in (3),
(4) and (5) above and Net Plant values from Attachment O as identified in (7) and (8) above. These
balances shall reflect any retirements or subsequent like kind replacements associated with the ongoing
maintenance of the facilities identified in the project.
(11)
Each individual project shall be identified separately as a sub-row of line 1 on page 2 of the Attachment GG
template attached, to be identified as line 1a, 1b, etc. The Transmission Owner shall add additional sub-rows to
line 1 as needed to accommodate additional projects.
(Note: An example of the operation of this NUC mechanism is appended to this Attachment GG after the Attachment GG
Rate Formula Template)
(b)
Nothing contained in this Attachment GG shall limit the right of an ITC and/or Transmission Owner under Section 205
Effective On: April 1, 2016
MISO
FERC Electric Tariff
ATTACHMENTS
ATTACHMENT GG
Network Upgrade Charge
30.0.0, 31.0.0
of the Federal Power Act and consistent with the ISO Agreement to file with the Commission individually and unilaterally to
recover the cost of a Network Upgrade in a manner other than that specified in this Attachment GG, including, but not limited
to recover rate incentives not specified herein and to recover the cost of Network Upgrades through its pricing zone rates under
Schedules 7, 8, and 9 as calculated pursuant to Attachment O.
4.
Network Upgrades Recovered under Attachment O
Subject to agreement between or among the Transmission Owner and/or ITCs constructing, owning or financing the Network
Upgrade within the affected pricing zone(s), to the extent that one Transmission Owner and/or ITC completes a Network
Upgrade that benefits Transmission Customers in one or more additional pricing zones separate from those upgrades accruing
benefits only to the individual Transmission Owner and/or ITC pricing zone and in the event the Network Upgrade is not
recorded on the books of the Transmission Owner and/or ITC as transmission plant subject to recovery in state and federal
rates, a regulatory asset will be set up on the accounting systems for each affected Transmission Owner and/or ITC equivalent
to its share of the Network Upgrade costs. The regulatory asset will be recognized as a new Line 29a on Page 2 of Attachment
O subject to regulatory approval revising Attachment O as such. Such regulatory asset will be subject to the average
depreciation rate of the pricing zone’s other transmission plant. To the extent that adjacent Transmission Owner and/or ITCs
construct and own portions of a Network Upgrade, the regulatory asset methodology described herein shall be used
to allocate these costs to match the benefits accruing to those Transmission Customers to the greatest extent practicable.
Effective On: April 1, 2016
MISO
FERC Electric Tariff
ATTACHMENTS
Formula Rate calculation
ATTACHMENT GG
Network Upgrade Charge
30.0.0, 31.0.0
Rate Formula Template
Utilizing Attachment O Data
Attachment GG - Generic
For the 12 months ended 12/31/__
Page 1 of 2
MISO Generic Company
To be completed in conjunction with Attachment O.
(1)
(2)
(3)
(4)
Attachment O
Line
Page, Line, Col.
Transmission
Allocator
No.
1
Gross Transmission Plant – Total
Attach O, Page 2, Line 2, Col. 5 (Note A)
0
2
Net Transmission Plant – Total
Attach O, Page 2, Lines 14 and 23b, Col. 5 (Note B)
0
O&M EXPENSE
3
Total O&M Allocated to Transmission
Attach O, Page 3, Line 8, Col. 5
0
4
Annual Allocation Factor for O&M
(Line 3 divided by Line 1, Col. 3)
0.00%
0.00%
GENERAL AND COMMON (G&C) DEPRECIATION EXPENSE
5
Total G&C Depreciation Expense
6
Annual Allocation Factor for G&C Depreciation Expense
Attach O, Page 3, Lines 10 & 11, Col. 5 (Note H)
(Line 5 divided by Line 1, Col. 3)
0
0.00%
0.00%
Effective On: April 1, 2016
MISO
FERC Electric Tariff
ATTACHMENTS
ATTACHMENT GG
Network Upgrade Charge
30.0.0, 31.0.0
TAXES OTHER THAN INCOME TAXES
7
Total Other Taxes
8
Annual Allocation Factor for Other Taxes
9
Annual Allocation Factor for Expense
Attach O, Page 3, Line 20, Col. 5
(Line 7 divided by Line 1, Col. 3)
0
0.00%
Sum of lines 4, 6 & 8
0.00%
0.00%
INCOME TAXES
10
Total Income Taxes
Attach O, Page 3, Line 27, Col. 5
0
11
Annual Allocation Factor for Income Taxes
(Line 10 divided by Line 2, Col. 3)
0.00%
0.00%
RETURN
12
Return on Rate Base
Attach O, Page 3, Line 28, Col. 5
0
13
Annual Allocation Factor for Return on Rate Base
(Line 12 divided by Line 2, Col. 3)
0.00%
14
Annual Allocation Factor for Return
Sum of lines 11 & 13
0.00%
0.00%
Effective On: April 1, 2016
MISO
FERC Electric Tariff
ATTACHMENTS
ATTACHMENT GG
Network Upgrade Charge
30.0.0, 31.0.0
Attachment GG - Generic
Formula Rate calculation
Rate Formula Template
For the 12 months ended 12/31/__
Utilizing Attachment O Data
Page 2 of 2
MISO Generic Company
Network Upgrade Charge Calculation by Project
(1)
(2)
(3)
(4)
(5)
(6)
Annual
MTEP
Line
No.
Project Name
Project
Project Gross
Number
Plant
(7)
(8)
(9)
Allocation
Annual
Project
(10)
(11)
(12)
Annual
Allocation
Annual
Factor for
Expense
Project Net
Factor for
Return
Depreciation
Expense
Charge
Plant
Return
Charge
Expense
Network
Annual Revenue
Requirement
True-Up
Adjustment
Upgrade
Charge
Sum Col. 10 & 11
(Note C)
(Page 1, Line 9)
(Col. 3 * Col. 4)
(Note D)
(Page 1, Line 14) (Col. 6 * Col. 7)
(Note E)
(Sum Col. 5, 8 & 9)
(Note F)
(Note G)
1a
Project 1
P1
$0
0.00%
$0
$0
0.00%
$0
$0
$0
$0
$0
1b
Project 2
P2
$0
0.00%
$0
$0
0.00%
$0
$0
$0
$0
$0
1c
Project 3
P3
$0
0.00%
$0
$0
0.00%
$0
$0
$0
$0
$0
2
Annual Totals
$0
3
Rev. Req. Adj for Attachment O
$0
$0
$0
Effective On: April 1, 2016
MISO
FERC Electric Tariff
ATTACHMENTS
Note
Letter
A
ATTACHMENT GG
Network Upgrade Charge
30.0.0, 31.0.0
Gross Transmission Plant is that identified on Page 2, Line 2 of Attachment O and includes any sub lines 2a or 2b etc. and is inclusive of any CWIP included in rate base when authorized by FERC order less any
prefunded AFUDC, if applicable.
B
Net Transmission Plant is that identified on Page 2, Line 14 of Attachment O and includes any sub lines 14a or 14b etc. and is inclusive of any CWIP included in rate base when authorized by FERC order less any
prefunded AFUDC, if applicable.
C
Project Gross Plant is the total capital investment for the project calculated in the same method as the gross plant value in Line 1 and includes CWIP in rate base less any prefunded AFUDC, if applicable. This value
includes subsequent capital investments required to maintain the facilities to their original capabilities.
D
Project Net Plant is the Project Gross Plant Identified in Column 3 less the associated Accumulated Depreciation.
E
Project Depreciation Expense is the actual value booked for the project and included in the Depreciation Expense in Attachment O, Page 3, Line 12.
F
True-Up Adjustment is included pursuant to a FERC approved methodology, if applicable.
G
The Network Upgrade Charge is the value to be used in Schedules 26, 37 and 38.
H
The Total General and Common Depreciation Expense excludes any depreciation expense directly associated with a project and thereby included in Page 2, Column 9.
Effective On: April 1, 2016
MISO
FERC Electric Tariff
ATTACHMENTS
ATTACHMENT GG
Network Upgrade Charge
30.0.0, 31.0.0
Table 1
Cross Reference to Attachment O for Completion of Attachment GG
Attachment GG
FERC Form 1
EIA Form 412 Non-Levelized
EIA Form 412 Cash Flow
RUS Form 12 Non-Levelized
RUS Form 12 Cash Flow
Gross Transmission Plant
Page 1, Line 1, Col. 3
Page 2, Line 2, Col. 5
Page 2, Line 2, Col. 5
Page 3, Line 2, Col. 5
Page 2, Line 2, Col. 5
Page 3, Line 2, Col. 5
Net Transmission Plant*
Page 1, Line 2, Col. 3
Page 2, Line 14, Col. 5
Page 2, Line 14, Col. 5
Page 3, Line 2, Col. 5
Page 2, Line 14, Col. 5
Page 3, Line 2, Col. 5
O&M Expense
Page 1, Line 3, Col. 3
Page 3, Line 8, Col. 5
Page 3, Line 8, Col. 5
Page 2, Line 8, Col. 5
Page 3, Line 8, Col. 5
Page 2, Line 8, Col. 5
Depreciation Expense
Page 1, Line 5, Col. 3
P. 3, Lines 10&11, Col. 5 P. 3, Lines 10&11, Col. 5
N/A
Page 3, Lines 10 & 11, Col. 5
N/A
Taxes Other Than Income Taxes
Page 1, Line 7, Col. 3
Page 3, Line 20, Col. 5
Page 3, Line 20, Col. 5
Page 2, Line 19, Col. 5**
Page 3, Line 20, Col. 5
Page 2, Line 19, Col. 5
Total Income Taxes
Page 1, Line 10, Col. 3
Page 3, Line 27, Col. 5
Page 3, Line 27, Col. 5
N/A
Page 3, Line 27, Col. 5
N/A
Return on Rate Base
Page 1, Line 12, Col. 3
Page 3, Line 28, Col. 5
Page 3, Line 28, Col. 5
Page 2, Line 11, Col. 5 &
Page 3, Line 28, Col. 5
Page 2, Line 11, Col. 5 &
General and Common
Page 2, Line 21, Col. 5***
Page 2, Line
21, Col. 5
Notes:
*
The Net Transmission Plant for Transmission Owners using an Attachment O based on either EIA Form 412 Cash Flow or RUS Form 12 Cash Flow shall use their Gross Transmission Plant from Page 2, Line 2, Column 5 for
a Net Transmission Plant value. These two Attachment Os do not allow for the recovery of depreciation expense nor do they decrement rate base for accumulated depreciation, therefore to maintain a consistent methodology
between Attachment O and Attachment GG no depreciation expense would be recovered under Attachment GG nor would any accumulated depreciation be included in the calculation of the Net Transmission Plant balances.
**
The Taxes Other Than Income Taxes for SMMPA’s EIA Form 412 Cash Flow Attachment O shall use Page 2, Line 20, Col. 5 .
***
The Return on Rate Base for SMMPA’s EIA Form 412 Cash Flow Attachment O shall use Page 2, Line 12, Col. 5 and Page 2, Line 22, Col. 5.
Effective On: April 1, 2016
MISO
FERC Electric Tariff
ATTACHMENTS
ATTACHMENT GG
Network Upgrade Charge
30.0.0, 31.0.0
Table 2
Transmission Expansion Projects Authorized for Network Upgrade Charge
(reserved )
1
Loads that are included in the Attachment O rate divisor for the NSP Companies’ pricing zone (zone 16), but are located in the
OTP load balancing area and are charged the applicable OTP pricing zone (zone 18) Schedule 26 rate, shall be excluded from the zone
16 Schedule 26 rate divisor and included in the zone 18 Schedule 26 rate divisor for purposes of calculating the Schedule 26 rates in
zones 16 and 18.
Effective On: April 1, 2016