MRES Transmission Update: Projects, Rates, and Regulatory Changes - August 25, 2023
Explore the latest updates on MRES transmission projects, rate adjustments, and regulatory developments discussed during the meeting on August 25, 2023. Details include MRES member rate information, specific rate adjustments for MMU and WMU, transmission project energization, true-up information, and FERC background on transmission facilities owned by WMMPA. Stay informed about the progress and changes impacting MRES and its members.
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Presentation Transcript
August 25, 2023 John Weber, Senior Transmission Engineer
Agenda Meeting Purpose MRES Profile MRES, MMU & WMU True-up for 2022 MRES member historical rate information Question/Answer
Meeting Purpose MRES background Regulatory Changes / Timelines MRES, MMU & WMU specific rate information MRES true-up info on Attachment O/GG/MM from 2022. MMU true-up info on Attachment O from 2022. WMU true-up info on Attachment O from 2022. True-up from 2022 along with forecast for 2024 will be incorporated into rates to be effective on January 1, 2024. MRES member rate information ALP Utilities (ALP), Atlantic Municipal Utilities (AMU), Benson Municipal Utilities (BMU), Breckenridge Public Utilities (BPU), Detroit Lakes Public Utilities (DLPU), Hutchinson Utilities Commission (HUC), City of Pella Electric Department (Pella) and Worthington Public Utilities (WPU).
- 61 Members served - Transmission: ~362 miles - Generation: ~788 MW - Renewable: ~130.2 MW MRES MISO & SPP Members, Generation and Transmission Rugby Wind 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 Hancock Co. Wind Laramie River Station MBPP Exira Station Red Rock Hydroelectric Plant MRES Member in MISOMarket MRES Member in SPPMarket MRES GenerationResource 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 MRES filed for direct assignment of property taxes in ER17-1515, which was accepted 7/25/17. Incentive filing (ER23-2284, 6/28/23) MISO LRTP Tranche 1, Big Stone Alexandria Big Oaks 345 kV CWIP, Abandon Plant, Hypothetical cap structure (50/50)
MRES Transmission Projects The Lorain Substation near Worthington, MN was energized in January ($5.8M total cost) On May 30 2022, a tornado struck the Elbow Lake Substation Restoration has been completed and an additional switch was installed for sectionalization purposes MRES has worked with FEMA to help cover some of the repairs Given the insurance and FEMA funding, the ATRR impact is expected to be minimal On July 25, 2022 the MISO board approved the LRTP Tranche 1 projects, including a new 345 kV line from Big Stone to Alexandria to Big Oaks MRES will own ~60% of the facility Attachment MM Project with an estimated cost of $573.5M MRES filed for rate incentives for the project in ER23-2284
MRES Member Updates In 2022, WMU is expanded its 230/69 kV sub($650k total cost) Upgrading bus jumpers, switches, and oil filled breakers at the Willmar 230/69 kV substation. Willmar rebuilt the 230 kV to a ring bus, added a 230/115 kV transformer, installed a breaker at Priam as well ($12.3M total cost) In 2022, WMU relocated its old plant/dist. sub($3M total cost) The Willmar power plant building was being decommissioned and removed. Sub protection and controls were in the building and needed to be moved. The entire sub was be moved to a new location.
Regulatory / FERC Issues, Procedures and Timing cont. By May 1st Post Historical entity Attachment O Rate Information By June 1st Post FLTY entity actual calculations and true-ups based on prior year s Rate Information By September 1st Meet with Interested Parties to discuss the historical and actual prior year s Rate information By October 1st Post FLTY info for MRES, MMU & WMU By October 31st Meet with Interested Parties to discuss the FLTY Rate information 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 April 15th Deadline for formal challenges
MRES 2022 True-Up Adjustment Overview Actual $ 6,330,172 Projected $6,373,129 Difference ($42,957) (a) Net Revenue Requirement Divisor True-Up Divisor (kW) 707,932 736,918 28,986 Projected Rate ($/kW/Yr) $8.5360 True-Up (Divisor Difference x Projected Rate) $247,424 (b) Interest ((a + b) * interest rate) $10,624 (c) Total 2022 True-Up Adjustment (Under Recovery) $215,091 (a+b+c)
2022 MRES Annual Transmission Revenue Requirement Distribution MRES Total ATRR Attachment O, GG, MM $20,200,614 Attachment O MISO MISO $6,330,172 Attachment GG Attachment MM 31.3% CapX Fargo CapX Brookings $8,957,429 $4,913,013 MISO SPP $3,220,063 $3,110,108 44.3% 24.3% 10
MRES Member Attachment O Information MRES is MISO TO on behalf of 10 MRES members MRES is contact for any initial questions Standard MISO templates for 8, and FLTY for 2 OTP Zone ALP Prior Year BMU 1 Year Lag BPU 1 Year Lag DLPU 1 Year Lag GRE Zone HUC 1 Year Lag WMU - FLTY ITC-M Zone - WPU 1 Year Lag MEC Zone AMU Prior Year Pella 6 mo. Lag (7/1-6/30 financial year) NSP Zone MMU - FLTY
MMU 2022 True-Up Adjustment Overview Actual $1,618,623 Projected $1,657,645 Difference ($39,022) Net Revenue Requirement (a) Divisor True-Up Divisor 71,762 73,893 2,131 Projected Rate ($/kW/Yr) $22.4330 True-Up (Divisor Difference x Projected Rate) $47,805 (b) Interest ((a + b) * interest rate) $962 (c) Total 2022 True-Up Adjustment (Under Recovery) $9,745 (a+b+c)
WMU 2022 True-Up Adjustment Overview Received $2,920,187 Actual $2,452,016 Difference ($468,171) Revenue Received vs Requirement (a) Interest ((a) * interest rate) ($49,626) (b) Total 2022 True-Up Adjustment (Over Recovery) ($517,797) (a+b)
Revenue Requirements for 2022 Historical ALP AMU BMU BPU DLPU HUC Pella WPU Net Attachment O Revenue Requirement $ 379,554 $ 750,639 $ 81,088 $ 47,310 $ 460,409 $ 936,620 $ 2,080,862 $ 365,220 Revenue Requirements for 2023 FLTY MRES MMU WMU Net Attachment O Revenue Requirement $ 7,882,196 $ 1,722,247 $ 2,558,688
Questions If you have any questions after the meeting, please submit via e-mail to John Weber: john.weber@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. (https://www.oasis.oati.com/MRET/index.html)
