The Federal Energy Regulatory Commission issued a declaratory judgment last Friday confirming that the SPP/MISO Joint Operating Agreement allows the parties to share available transmission capacity. MISO's April petition sought clarification of conflicting interpretations between MISO and SPP regarding Section 5.2 of the agreement. FERC agreed with MISO's interpretation that Section 5.2 provides for sharing transmission capacity on a common path.

"MISO appreciates FERC's timely action in resolving this matter. FERC's confirmation of our understanding of the JOA is consistent with past practices and daily operations on our seams. This also eliminates confusion concerning connectivity issues related to Entergy's planned integration into MISO's market operations," said John R. Bear, president and CEO of MISO. Enhanced transfer capability between Entergy and MISO will allow for more efficient use of the transmission system, further increasing the benefits to customers from Entergy's integration while maintaining high levels of reliability that MISO and SPP customers expect.

FERC's order, according to MISO, recognizes the practical need for MISO and SPP to continue to work together on possible revisions to the JOA to improve the economic efficiency of the operations of the combined region. MISO agrees that continued improvement of the JOA is important and necessary because market efficiencies ultimately lead to increased customer benefits.

Southwest Power Pool released a statement as well, stating that FERC specifically recognized SPP’s position that the JOA should be renegotiated. FERC stated that MISO has “an obligation to negotiate in good faith” in response to changes to the JOA that SPP may propose if Entergy joins MISO.

"Of paramount importance will be how MISO and/or Entergy will compensate SPP members for MISO’s proposed new daily use of SPP’s transmission system. Should Entergy’s state regulators approve Entergy’s membership in MISO, SPP will propose significant changes to the JOA to protect its members’ systems from the cost impacts resulting from transmission limitations and congestion. These changes will ensure equitable compensation for transmission service and transmission construction for SPP’s members." SPP's announcement said.

“Consistent with independent analysis, SPP still believes it is the right choice for Entergy and its customers and will continue to make that argument in state proceedings. Should it become necessary, SPP will work with MISO to determine a path forward that also protects our members and their ratepayers,” said Nick Brown, SPP president and CEO. “There are still many steps in this process.”

MISO said it also remains committed to working with state regulatory commissions and other interested stakeholders to address any issues that may arise during Entergy's planned integration into MISO market operations.