Improved Electrical Transmission Systems In Arkansas Costing Millions

by Luke Jones  on Monday, Aug. 19, 2013 12:00 am  

Sugg noted that the process would have been cheaper and easier for AECC if Entergy had chosen SPP as an operator rather than MISO.

Even so: “We believe it will be an improvement.”

SPP had been using a transmission market for several years, and the Federal Energy Regulatory Commission approved in October 2012 its upgrade to a “day-ahead” market, which allows it to decide which generators should operate one day ahead of time.

Some opposition was heard from the Arkansas Public Service Commission early on in the Entergy-MISO transition process.

However, the PSC approved it in April, and it is on track for completion in December.

“It’s an expense that’s worth it,” said Kurt Castleberry, director of resource planning for Entergy Arkansas. “Its benefits more than offset the cost.”

MISO has promised to save Arkansas ratepayers $263 million over 10 years, and Castleberry backed that up.

“MISO is at a big advantage — and bigger is better in this business — because they have an enlarged geographical footprint,” Castleberry said.

“Many generators participate in the market, and that presents the opportunity to come up with a lower-cost solution to benefit all customers.”

Bruce Rew, vice president of operations for SPP, said its new market is supposed to save ratepayers, as a whole, about $10 million per month.

The budget for SPP’s upgrade of the market is $115 million, he said.

“It benefits ratepayers through the optimization of the generation and load serving within a greater footprint,” he said.

“Now we can look at the entire footprint, and that allows us to have a greater opportunity to have cheaper resources available, and that saves money for everybody.”

 

 

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