FERC Approves Incentives for Green Power Express Transmission Proposal

On April 10, the Federal Energy Regulatory Commission (FERC) issued an order in Docket No. ER09-681-000 (the Order) granting approval of various transmission infrastructure rate incentives requested by Green Power Express, LP (GPE). FERC also set for hearing GPE’s requested approval of a formula rate, which GPE’s application states would eventually be included in the tariffs of the Midwest Independent Transmission System Operator, Inc. (MISO) and the PJM Interconnection, LLC (PJM) regional transmission operators (RTOs).

GPE’s proposal is for approximately 3,000 miles of 765 kV transmission lines to be constructed in seven Midwestern states. GPE’s application states that its proposal will bring up to 12,000 MW of wind and stored energy from North Dakota, South Dakota, Minnesota, and Iowa to Midwest load centers, such as Chicago, southeastern Wisconsin, and the Minneapolis–St. Paul area. GPE states that it intends to become an independent transmission-owning member of both the MISO and PJM.

Although there is not yet a definitive route for the proposed transmission facilities, the cost for the proposed project is estimated to be between $10 billion and $12 billion. GPE was formed by ITC Holdings Corp., whose other subsidiaries include International Transmission Company, Michigan Electric Transmission Company, LLC, and ITC Midwest LLC. GPE’s application states that it is exploring the potential for partnering with other companies to develop its proposal; however, no partners have yet been identified.

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