August 3, 2018 Meeting Agenda and Updates
John Weber, Senior Transmission Engineer, leads discussions on MRES profile, true-ups, regulatory changes, and timelines for MRES and MMU members. Explore background information, historical rate details, and future forecasts impacting rates effective from January 1, 2019.
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Presentation Transcript
August 3, 2018 John Weber, Senior Transmission Engineer
Agenda Meeting Purpose MRES Profile MRES and MMU True-up for 2017 MRES member historical rate information Question/Answer
Meeting Purpose MRES background Regulatory Changes / Timelines MRES and MMU specific rate information MRES true-up info on Attachment O/GG/M from 2017. MMU true-up info on Attachment O from 2017. True-up from 2017 along with forecast for 2019 will be incorporated into rates to be effective on January 1, 2019. MRES member rate information ALP Utilities (ALP), Benson Municipal Utilities (BMU), Detroit Lakes Public Utilities (DLPU), Hutchinson Utilities Commission (HUC), and Worthington Public Utilities (WPU).
- 61 Members served - Transmission: ~362 miles - Generation: ~740 MW - Renewable: ~86 MW MRES MISO & SPP Members, Generation and Transmission Rugby Win Project Fort Peck Dam d ITA Garrison Dam Canyon Ferry Dam Big HornRiver YellowtailDam Marshall WindProject Pierre Solar Project Watertown PowerPlant Irv Simmons Oahe Dam Big BendDam PointBeach NuclearPlant Odin WindProject Gavin s Point Dam Fort RandallDam Worthington WindProject Laramie River Station MBPP Exira Station Red Rock Hydroelectric Plant MRES Member in MISOMarket MRES Member in SPPMarket MRES GenerationResource MRES Generation Resource Under Construction Federal Hydroelectric Dam CapX 2020 Transmission Routes
MRES FERC Background Transmission facilities are owned by Western Minnesota Municipal Power Agency (WMMPA) FERC Declaratory Order (EL08-22, 12/08) combines financial statements for ATRR Attachment O effective 6/1/11 Incentive filing (EL11-45, 6/11) CapX; Fargo P2 & P3, and Brookings CWIP, Abandon Plant, Hypothetical cap structure 205 filing (ER12-351, 11/11) FERC Approved ER12-351, and EL 11-45 on January 20, 2012
Regulatory / FERC Issues Complaint against MISO TOs regarding ROE and certain TOs regarding capital structure (EL15-45) Resolved in 2017 and the new ROE has been implemented MRES filed for direct assignment of property taxes (ER17-1515) FERC accepted 7/25/17 MRES has implemented for 2018 FLTY MRES has performed 2 True-ups for 2017; 1 with changes, 1 without, and weighted the two to get an overall revenue requirement for the year
Regulatory / FERC Issues, Procedures and Timing cont. By June 1st Post actual calculations and true-ups based on prior year s Rate Information By September 1st Meet with Interested Parties to discuss the actual prior year s Rate information By October 1st Post FLTY info for MRES and MMU December 1st Deadline for information requests By January 10th Must respond to information requests January 31st Deadline for informal challenges March 15th Annual Informational filing March 31st Deadline for formal challenges
MRES 2017 True-Up Adjustment Overview Actual $5,004,725 Projected $5,957,662 Difference $952,937 Net Revenue Requirement (a) Divisor True-Up Divisor (kW) 685,311 683,607 1,704 Projected Rate ($/kW/Yr) $8.8017 True-Up (Divisor Difference x Projected Rate) $14,998 (b) Interest - (a+b) * interest rate $77,776 (c) Total 2017 True-Up Adjustment (Under Recovery) $1,045,711 (a+b+c)
2017 MRES Annual Transmission Revenue Requirement Distribution MRES Total ATRR Attachment O, GG, MM $19,786,279 Attachment O MISO MISO $5,004,725 Attachment GG Attachment MM 25.3% CapX Fargo CapX Brookings $5,321,694 $9,552,405 $5,229,149 (After ER17-1515) 48.3% 26.4% 9
MRES member Attachment O Information MRES is MISO TO on behalf of 6 MRES members MRES is contact for any initial questions Standard MISO templates for 5, and FLTY for 1 OTP Zone ALP Prior Year BMU 1 Year Lag DLPU 1 Year Lag GRE Zone HUC 1 Year Lag (was Prior Year) ITC-M Zone - WPU 1 Year Lag NSP Zone MMU - FLTY
MMU 2017 True-Up Adjustment Overview Actual $1,888,488 Projected $1,929,479 Difference $40,991 Net Revenue Requirement (a) Divisor True-Up Divisor 76,099 77,259 1,160 Projected Rate ($/kW/Yr) $24.974 True-Up (Divisor Difference x Projected Rate) $28,970 (b) Interest ((a + b) * interest rate) $993 (c) Total 2017 True-Up Adjustment (Under Recovery) $13,014 (a+b+c)
Revenue Requirements for 2017 TU / 2018 ALP BMU DLPU HUC MMU WPU Net Attachment O Revenue Requirement $ 284,879 $ 76,018 $ 292,128 $ 1,053,887 $ 2,100,897 $ 427,052
Questions If you have any questions after the meeting, please submit via e-mail to John Weber: jweber@mrenergy.com All questions and answers will be posted on the MRES OASIS website along with any follow-up questions received within two weeks from the date of inquiry on the OASIS site. (http://oasis.midwestiso.org/OASIS/MRET )
