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Home > Transmission Strategy > Insights > Are You Leaving Transmission Revenue on the Table? A New Form of Migration–Changing from a Stated Transmission Rate to a Formula Rate in SPP (white paper)

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Are You Leaving Transmission Revenue on the Table? A New Form of Migration–Changing from a Stated Transmission Rate to a Formula Rate in SPP (white paper)

Of the 13 new public power and Generation & Transmission (“G&T”) transmission owners entering the Southwest Power Pool (“SPP”) in the Upper Missouri Zone effective October, 2015, all 13 have filed for recovery of their transmission costs using formula rates rather than stated rates. This is in sharp contrast to the condition previously where 13 out of the 18 public power and G&T transmission owners in SPP used a stated rate to recover their transmission costs under the SPP tariff. As these new entities have come to realize, formula rates provide a distinct advantage for transmission owners in SPP to recover their due costs as transmission costs rise. Put simply, if you are using stated rates, you may be leaving transmission revenue on the table.

Download the SPP migrating to a formula rate white paper