Non-Unanimous Stipulation Would Condition Entergy Texas MISO Membership on Other OpCo's Status; ARR Impact

A non-unanimous stipulation filed by several parties in Texas would condition Entergy Texas Inc.'s transfer of operational control of its transmission assets to the Midwest ISO on the membership status of the other Entergy operating companies (Docket 40346).

The non-unanimous stipulation (NUS) was signed by ETI, Staff of the Public Utility Commission of Texas, the Midwest ISO, Texas Industrial Energy Consumers, and other parties. The Southwest Power Pool did not join the stipulation.

The NUS provides, based on the terms and conditions set out in the settlement, that the signatories agree that ETI's application to transfer operational control of its transmission facilities to the MISO RTO meets the requirements of PURA §§ 39.915(b) and 39.262(m) and is in the public interest, subject to all conditions stated in the stipulation.

Among other things, the NUS provides that ETI agrees that if all of the Entergy Operating Companies (EOCs) do not join MISO by December 31, 2013, ETI will not transfer operational control of its transmission assets to MISO, without first making a new filing with the Commission pursuant to PURA § 39.915 and allowing the Commission the statutory timeframe to issue a determination concerning that filing under PURA § 39.915(b).

Notably, the Arkansas PSC has determined that it cannot find that Entergy Arkansas' application to join MISO is in the public interest at this time. Though the Arkansas PSC set forth several conditions that would allow it to approve Entergy Arkansas' application, Entergy Arkansas has said that some conditions, "are of concern to the company."

Under the Texas NUS, the signatories further agree that the Commission's determination that the transfer of control to MISO is in the public interest shall be conditioned on the potential impact to ETI ratepayers of:

a. the outcome of the proceedings for the establishment of MISO tariff and/or business practices, and/or FERC orders, addressing the manner in which Auction Revenue Rights can be nominated by ETI and the other EOCs and other Load Serving Entities in the Entergy footprint; and

b. the projected ARR allocation to ETI.

Based on its consideration of these ARR matters, the NUS provides that the Texas Commission may take further action as it deems appropriate, including determining whether changed circumstances justify reconsideration of its public interest determination.

ETI also agrees, under the NUS as a condition of joining MISO, to give notice by October 31, 2013 to exit the Entergy system agreement, provided that the following conditions are met:

1) issuance of a final order by the Commission in Docket No. 40346 determining that if ETI joins MISO, ETI's continued participation in the ESA is not in the public interest; and

2) ETI has determined, by October 31, 2013, that all of the EOCs will be integrated into the MISO RTO by December 19, 2013.

ETI also agrees that as a condition of joining MISO that it will "support" retention of the Entergy Regional State Committee's current level of authority during the five-year transition period.

MISO also agrees under the stipulation to file at FERC to grant the Organization of MISO States with certain filing rights, including, if enumerated qualifying circumstances are met, that MISO will include an alternative proposal from OMS in any MISO section 205 filing to modify the transmission cost allocation methodology.