Docket No. ER23-2507-000 1
FEDERAL ENERGY REGULATORY COMMISSION
WASHINGTON, DC 20426
OFFICE OF ENERGY MARKET REGULATION
New York Independent System Operator, Inc.
Issued: September 21, 2023
On July 28, 2023, New York Independent System Operator, Inc. (NYISO) filed, on behalf of Central Hudson Gas and Electric Corporation (Central Hudson), proposed revisions to Rate Schedule 19 of the NYISO Open Access Transmission Tariff (OATT) to establish Central Hudson’s formula rate template and associated formula rate implementation protocols (Protocols).[1] These revisions derive and recover the costs of local transmission upgrades determined by the New York State Public Service Commission (NYPSC) to be necessary to meet New York State climate and renewable energy goals as required by New York State law, the Climate Leadership and Community Protection Act (CLCPA Eligible Projects).
Please be advised that the filing is deficient and that additional information is necessary to process the filings. Please provide the information requested below.
The Commission established its policy regarding transmission formula rate protocols in a series of cases involving Midcontinent Independent System Operator, Inc.’s (MISO) Open Access Transmission, Energy and Operating Reserve Markets Tariff.[4] The resulting MISO Protocol Orders have served as the benchmark for proceedings involving the justness and reasonableness of formula rate protocols.[5]
This letter is issued pursuant to 18 C.F.R. § 375.307 and is interlocutory. This letter is not subject to rehearing under 18 C.F.R. § 385.713. A response to this letter must be filed with the Secretary of the Commission within 30 days of the date of this letter by making a deficiency filing in accordance with the Commission’s electronic tariff requirements. For your response, use Type of Filing Code 170 if your company is registered under program code “M” (Electric Market Based Rate Public Utilities) or Type of Filing Code 180 if your company is registered under program code “E” (Electric Traditional Cost of Service and Market Based Rates Public Utilities).[22]
In addition, submit an electronic version of your response to Paul Robinson at paul.robinson@ferc.gov. The information requested in this letter order will constitute amendments to your filings and a new filing date will be established.[23] Notices will be issued upon receipt of your filing.
Pending receipt of the above information, a filing date will not be assigned to your filings. Failure to respond to this letter order within the time period specified may result in a further order rejecting your filings.
Issued by: Kurt M. Longo, Director, Division of Electric Power Regulation – East
[1] New York Independent System Operator, Inc., NYISO Tariffs, NYISO OATT, 6.19.9-6.19.9.2.1 OATT Schedule 19 Attachment 4 - Rate Mecha (0.0.0) and NYISO OATT, 6.19.9.2.2 OATT Schedule 19 -Central Hudson Gas and Electri (0.0.0).
[2] Dumais Testimony, Exh. CH-001, at 30.
[3] Id.
[4] Midwest Indep. Transmission Sys. Operator, Inc., 139 FERC ¶ 61,127 (2012), order on investigation, 143 FERC ¶ 61,149 (2013) (MISO Investigation Order), order
on reh’g, 146 FERC ¶ 61,209, order on compliance, 146 FERC ¶ 61,212 (2014) (MISO Compliance Order), order on reh’g, 150 FERC ¶ 61,024, order on compliance,
150 FERC ¶ 61,025 (2015) (MISO Compliance Order II) (collectively, MISO Protocol Orders).
[5] See, e.g., Black Hills Power, Inc., 150 FERC ¶ 61,198 (2015); UNS Elec., Inc., 153 FERC ¶ 61,132 (2015); The Empire Dist. Elec. Co., 153 FERC ¶ 61,127 (2015); Kansas City Power & Light Co., 153 FERC ¶ 61,150 (2015); Louisville Gas & Elec. Co., 153 FERC ¶ 61,126 (2015); Westar Energy, Inc., 153 FERC ¶ 61,143 (2015); Alabama Power Co., 182 FERC ¶ 61,015 (2023).
[6] Central Hudson’s Protocols Section 1.d. define Actual ATTRs as “the actual annual revenue requirement of Central Hudson’s CLCPA Eligible Projects for a Rate Year calculated in accordance with the Formula Rate and posted on the ISO website no later than June 15 following the end of such Rate Year.”
[7] Central Hudson’s Protocols Section 1.e. define Annual True-Up Adjustments as “the difference between the revenues collected for that Rate Year under the Formula Rate based upon a Projected ATRR (not including the True-up Adjustment or Corrections) and an Actual ATRR for the same Rate Year. The Annual True-up Adjustment is included in the applicable Annual Update for the next Rate Year.”
[8] For example, see Central Hudson’s Protocols, Section 3.c, 3.g (Actual ATRR Requirements), 3.h (Projected ATRR Requirements).
[9] Central Hudson’s Protocols, Sections 3.h, 6.a, 8.a. Central Hudson’s Protocols, Section 1.p. defines Projected ATTRs as “the projected annual revenue requirement of Central Hudson’s CLCPA Eligible Projects for the upcoming Rate Year calculated in accordance with the Formula Rate and posted on the ISO website no later than the Posting Date.”
[10] MISO Investigation Order, 143 FERC ¶ 61,149 at P 87.
[11] MISO Compliance Order, 146 FERC ¶ 61,212 at P 66.
[12] Id. P 65.
[13] Id.
[14] Central Hudson’s Protocols, Section 3.g.vi.C.
[15] Central Hudson’s Protocols, Section 3.c., 3.g.
[16] MISO Compliance Order, 146 FERC ¶ 61,212 at P 22.
[17] Id. P 62.
[18] Commonwealth Edison Co., 182 FERC ¶ 61,156, at P 28 (2023) (emphasis added).
[19] MISO Investigation Order, 143 FERC ¶ 61,149 at P 90.
[20] ATX Sw., LLC, 152 FERC ¶ 61,193, at P 85 (2015) (“We reject ATX Southwest’s proposed Section IV.J, which attempts to define the scope of various types of future section 205 filings and is inappropriate to include in the formula rate protocols. The scope of any future section 205 filings will be addressed when such filings are made.”); Transource Kansas, LLC, 163 FERC ¶ 61,176, at PP 13-17 (2018); Indicated RTO Transmission Owners, 161 FERC ¶ 61,018, at P 13 (2017) (declining to make an advance determination on single issue ratemaking for transmission owners of PJM Interconnection, LLC and Southwest Power Pool, Inc. on the basis that it was “unclear whether the specific revisions [] will affect other unchanged components of their formula rates”); Commonwealth Edison Co., 182 FERC ¶ 61,156 at P 27.
[21] Central Hudson’s Protocols, Section 3.k.
[22] The filing must include at least one tariff record in each docket to restart the statutory timeframe for Commission action even though a tariff revision might not otherwise be needed. See generally Elec. Tariff Filings, 130 FERC ¶ 61,047, at PP 3-8 (2010) (explaining that the Commission uses the data elements resulting from the tariff filing process to establish statutory filing and other procedural dates).
[23] See Duke Power Co., 57 FERC ¶ 61,215, at 61,713 (1991) (“the Commission will consider any amendment or supplemental filing filed after a utility’s initial filing . . . to establish a new filing date for the filing in question”).