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Independent regulatory commissions

ITC Companies Intervene in FERC Docket on Cost Recovery Mechanism for DOE's Order

Strategic Insights

— 2 min read

The International Transmission Company (ITC), Michigan Electric Transmission Company, LLC, and ITC Midwest LLC have filed a motion to intervene in the Federal Energy Regulatory Commission (FERC) docked proceeding, EL25-90, in support of Consumers Energy's complaint requesting a cost recovery mechanism for the Department of Energy's (DOE) Order. The companies, collectively referred to as the ITC Companies, argue that the existing Midcontinent Independent System Operator (MISO) Tariff does not include a mechanism for cost recovery associated with complying with the DOE's Order, which delays the scheduled closure of Consumers' Campbell Plant.

Key Takeaways:

  • The ITC Companies, as interveners, have a direct interest in changes to MISO's Tariff, as they are Transmission Owner members of MISO and have a specific, direct, and substantial interest in the outcome of this proceeding.
  • The existing MISO Tariff does not include a mechanism for cost recovery associated with complying with the DOE's Order, which delays the scheduled closure of Consumers' Campbell Plant.
  • Consumers Energy's complaint requests that FERC direct MISO to revise its Tariff to include a Section 202(c) Rate Recovery Mechanism to provide recovery of Consumers' costs in complying with the DOE Order.
  • The ITC Companies support Consumers' request for regional cost allocation for extending the operation of the Campbell Power Plant, as costs should be allocated based on the scope and nature of the conditions that prompted the issuance of the DOE's Order.
  • The ITC Companies agree with Consumers that the resource adequacy conditions referenced in the DOE's Order target northern and central regions of the Midwest, which generally would comprise MISO Zones 1-7.
  • The ITC Companies recommend that FERC grant Consumers' request to order MISO to amend its Tariff to include a cost recovery mechanism and to permit regional cost allocation for the costs associated with the directives in the DOE's Order.
  • The ITC Companies request that FERC grant this motion to intervene and grant Consumers' requests to order MISO to revise its Tariff.

Statistics:

  • The DOE's Order delays the scheduled closure of Consumers' Campbell Plant, which was set to occur on May 31st, 2025.
  • The ITC Companies have a unique and direct interest in the outcome of this proceeding, as they are Transmission Owner members of MISO.
  • The ITC Companies recommend that FERC grant Consumers' request to order MISO to amend its Tariff to include a cost recovery mechanism, effective as of the issuance of the DOE Order on May 23rd, 2025.
  • The ITC Companies agree with Consumers that the resource adequacy conditions referenced in the DOE's Order target northern and central regions of the Midwest, which generally would comprise MISO Zones 1-7.

Sources:

  • UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION, Docket No. EL25-90
  • Consumers Energy Company
  • Midcontinent Independent System Operator, Inc.
  • Federal Power Act

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