Draft Texas Order Would Conditionally Approve Entergy Texas Application to Join MISO

A Texas proposal for decision would conditionally grant Entergy Texas Inc.'s application to transfer operational control of its transmission assets to the Midwest ISO, subject to the provisions of a non-unanimous stipulation (NUS) among Entergy, Staff of the Public Utility Commission of Texas, and other parties.

The proposal for decision would find that subject to the provisions of the stipulation, Entergy Texas has met its burden of proof under PURA §§ 39.262 and 39.915 to demonstrate that approval of its application is in the public interest, and will not adversely affect ETI's reliability of service, availability of service, or cost of service.

As previously reported, 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).

Under the 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.

Docket: 40346