Under a proposal filed with the Federal Energy Regulatory Commission (FERC) on May 25, 2022, by the Midcontinent Independent System Operator (MISO), incumbent utilities in the grid operator’s footprint could build certain transmission projects without a competitive bidding process.[1] The grid operator proposes that if at least 80% of a project’s costs come from upgrades to the existing system, MISO will assign the transmission project to incumbent utilities. According to MISO. FERC approved a similar proposal from Southwest Power Pool (SPP) in 2014 that included an 80% cost threshold.

MISO claims that the revision would facilitate its Long Range Transmission Plan (LRTP) initiative. The MISO board is expected to approve the first of the LRTP projects (LRTP Tranche 1) on July 25, 2022. LRTP Tranche 1 is a set of transmission lines that could support about 53 GW of wind, solar, hybrid, and stand-alone battery projects. MISO said that the LRTP plan could be delayed if projects that involve upgrading existing facilities are subject to a competitive bidding process. Challenges include designing, permitting, and maintaining the facilities. According to the grid operator, the proposal still allows “significant opportunity” for competitive transmission development in the pending buildout. Based on a preliminary review, some “short segments” and conductor-only projects would likely be open to competitive bidding. In the proposal, MISO requested that the commission approve the proposal by July 25, 2022.

[1] https://elibrary.ferc.gov/eLibrary/filedownload?fileid=2dc38a07-70f0-cb85-9c76-80fcc3900000