Arkansas PSC "Unable" to Find, At This Time, That Entergy Arkansas' Application to Join MISO is In Public Interest

Given the, "separate and collective failure" of Entergy Arkansas, Inc. and the Midwest ISO to effectively address and satisfy the Arkansas PSC's concerns, the PSC is, "unable, at this time, to reach a finding that EAI's Application [to join MISO] is in the public interest," the PSC said in an order deferring further action on EAI's application (Docket 10-011-U)

The proceeding is notable as EAI is the only Entergy operating company with a direct connection to MISO, and EAI's status will impact the future of the other operating companies, including Entergy Texas, Inc.

The Arkansas PSC set forth a host of conditions that EAI and MISO would need to satisfy in order for the PSC to find that EAI's membership in MISO would be in the public interest. Many of these conditions would require FERC approval to take effect.

Among other things, the PSC requires that, should EAI become a member of MISO, MISO shall provide Entergy retail regulators, during the Entergy/MISO transition period, "with the same governance authority as now possessed by the ERSC [Entergy Regional State Committee], including, but not: limited to, the ability to take action on transmission planning and associated cost allocation issues by simple majority vote."

Furthermore, should EAI become a member of MISO, MISO shall agree to provide to the Organization of MISO States full "legally-recognized" Section 205 Federal Power Act filing rights with regard to several regulatory activities, including,
"[c]hoosing the approach to be used for assessing resource adequacy, if any, across the entire RTO region."

The PSC further conditioned MISO membership on EAI being assigned, separately and apart from the other Entergy operating companies, to a Transmission Pricing Zone; Load Zone; Auction Revenue Rights Zone; and Local Resource Zone.

If EAI is unable to become a member of MISO, for any reason, the PSC directed that EAI, "should promptly evaluate its other post-ESA [system agreement] options, including, but not limited to, seeking membership in the SPP RTO."

"As the Commission has repeatedly directed, EAI should also, on a parallel back, be taking all necessary actions to maintain the timely viability of the SPP option," the PSC said.