A Western municipal utility was involved in a collaboration of other regional transmission owners and users seeking to evaluate options ranging from a common regional transmission tariff to full regional transmission organization (RTO) membership. This required the utility to update its annual transmission revenue requirement as part of a Federal Energy Regulatory Commission (FERC) Open Access Transmission Tariff (OATT) filing.
Baker Tilly solution
Baker Tilly’s specialized energy and utilities team performed an analysis to determine the utility’s annual transmission revenue requirement in accordance with FERC OATT rules, specifically FERC Order No. 888. In addition, Baker Tilly examined the utility’s Network Integration Transmission Service (NITS) contracts with its existing transmission customers to determine the applicability of ancillary services and the need to update these rates.
Baker Tilly developed a summary of the utility’s annual transmission revenue requirement on both a cash flow and nonlevelized (accrual) basis. Further, we developed several pro forma OATT tariff schedules summarizing rates for long-term firm and short-term firm point-to-point transmission service as well as nonfirm point-to-point transmission service. As a result of Baker Tilly’s analysis the utility was in a position to submit an updated OATT filing to FERC.
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