Omaha Public Power District Moves Closer to Changing Membership in SPP
The push for more renewable energy across the country means that new transmission lines are going to be needed in the future. However, who should pay for them and how much is fair? The issue continues to divide the Omaha Public Power District and the Southwest Power Pool. It has also led OPPD’s Board of Directors to take the next step toward possibly changing the utility’s membership in SPP.
SPP is a regional transmission organization with members in nine states. The organization oversees enforcement and development of reliability standards for the nation’s transmission system in that nine-state region.
Last week at its board meeting the OPPD Board authorized management to implement a revised Open Access Transmission Tariff. Under requirements of the Federal Energy Regulatory Commission, the revision would be necessary if the utility were to change its membership in SPP. The revised tariff would provide the terms, conditions and rates under which OPPD will provide transmission services for new transmission service requests and existing service agreements.
The vote is the latest action in the dispute that began when SPP announced proposed changes in the method of allocating costs to members for new transmission facilities. Last year OPPD sent a letter opposing the new method and notifying SPP of its intention to become a non-transmission owner if changes could not be worked out. The District maintained that the new allocation method would shift significant costs to the utility’s customer-owners over time with little or no benefit. In fact, Nebraska customer-owners would be paying to help wind farm operators in Kansas and Oklahoma ship their energy eastward.
The two sides have remained unsuccessful in negotiating a resolution. However, despite the board’s latest vote, no final decisions have been made on when or if the change in membership will occur. The two sides expect to continue negotiations.
In other action at its monthly meeting the board also reviewed and approved the District’s 2010 Health Plan Report. The District’s health plan is self-funded and state law requires that the board review it annually.
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