Insights
FERC Filing Support – Supporting Public Power and Cooperatives in Transmission FERC Filings (Brochure)
MCR supports clients in transmission FERC filings in:Transmission incentive rate filings, Section 205 rate filings involving cost of capital testimony and formula rate support, and intervention and settlement support.
Strategic Business Planning for Transmission Owners
MCR works with clients to develop strategic business plans for transmission owners that set them up for success. These actionable plans address key transmission issues and help utilities transition to running transmission as a business rather than merely an operational necessity.
Read Strategic Business Planning for Transmission Owners
MCR’s Cost and Rate Competitiveness Services (brochure)
Click here to download the Cost and Rate Competitiveness Services brochure
MCR provides transmission strategy support to municipals, public power districts, joint action agencies, G&Ts, T&D cooperatives, and independent transmission developers in various RTOs. Our clients have a goal of optimizing the value of their current and future investments in electric transmission. We help them understand their costs and realize the full revenue potential from these transmission assets. MCR’s Transmission Strategy practice provides the following services:
Transmission Cost/Rate Competitiveness (see earlier pages for more detail)
- Peer Cost Comparison by FERC Account
- Rate Strategy and Transmission Revenue Forecasting
- Transmission Capital Investment and Metric Comparisons
Transmission Formula Rate Analysis
- Formula Rate Review for Existing Transmission Owners
- Development of ATRR for New Transmission Owners
- Review/Challenge to Incumbent IOU Formula Rate Costs
- Staff Education Workshops on Transmission Formula Rates
FERC Filings
- Section 205 Rate Filings – Testimony and Formula Rate Support
- Transmission Incentive Rate Filings and Testimony
- Cost of Capital Expert Testimony
- Intervention and Settlement Support
Strategic Economic Analysis
- Analysis of Joint Zone Investment and FERC 7-Factor Test
- Analysis of Potential Purchase or Sale of Transmission Assets
- Economic Evaluation of New Transmission Projects
- RTO Membership Evaluation
- Development of Transmission Business Plans
The Seven Potential Threats to the Transmission Business. Is Transmission in MISO Still a Solid Business? (white paper)
Over the past decade, the transmission business has been lucrative for most transmission owners in MISO. Transmission investment has been a driver of earnings growth for investor-owned utilities (“IOUs”) and transmission companies (“Transcos”), while providing high returns for public power and cooperatives. On the horizon, however, there are a number of potential threats to the transmission business and to transmission owners’ ability to sustain high levels of new investment. MCR believes that although some of these threats may eventually have an increasing impact on future investment opportunities, there are factors that mitigate these threats. Transmission will continue to be a strong business in MISO through at least the mid-2020s.
Download the Threats to Transmission Business white paper
The Seven Potential Threats to the Transmission Business: Is Transmission in SPP Still a Solid Business? (white paper)
Over the past decade, the transmission business has been lucrative for most transmission owners in SPP transmission. Transmission investment has been a driver of earnings growth for investor-owned utilities (“IOUs”) and transmission companies (“Transcos”), while providing high returns for public power and cooperatives. On the horizon, however, there are numerous potential threats to the transmission business and to transmission owners’ ability to sustain high levels of new investment. MCR believes that although some of these threats may eventually have an increasing impact on future investment opportunities, there are factors that mitigate these threats. Transmission will continue to be a strong business in SPP through at least the mid-2020s.
Download the Threats to Transmission Business white paper.
No End in Sight: Can Transmission Investment in MISO Continue at this Pace? (white paper)
There are many factors driving transmission investment. Just when one factor seems to run its course, another reason for investing in transmission takes over. In MISO, the growth rate of transmission investing over the last year has slowed a bit, but the absolute levels of investment will remain high for at least the next several years as investor-owned utilities (“IOUs”) and transmission companies (“Transcos”) continue to see transmission investment as a major driver of earnings. Although transmission investment is broadening somewhat to more generation and transmission cooperatives (“G&Ts”) and municipal utilities, the message for public power and cooperatives in MISO remains clear: Investing in transmission is the most effective way to counter rising transmission rates.
Download the MISO Investment white paper
Transmission Spending in PJM: Are You Obtaining Your Share of Transmission Investment? (white paper)
In PJM, total transmission investment by investor-owned utilities (“IOUs”) and transmission companies (“Transcos”) continues at high levels and is driving earnings. The factors encouraging investment show little sign of abating, ultimately leading to higher transmission rates. Many generation and transmission cooperatives (“G&Ts”) and public power entities are facing higher transmission rates from this substantial investment. Obtaining their own fair share of transmission investment can provide a means to mitigate the impacts of transmission rate increases and provide value to their members.
Download the PJM Transmission Investment white paper
Transmission Investing in SPP: Are You Obtaining Your Share of Transmission Investment? (white paper)
In SPP, total transmission investment continues at high levels and is being driven by many factors. However, recent investment by investor-owned utilities (“IOUs”) has been dominated by two IOUs. Many generation and transmission cooperatives (“G&Ts”) in SPP have recently stepped up their investment activity and some are now investing in transmission at a rate equivalent to their load ratio share, providing a means to mitigate the impacts of transmission rate increases and provide value to their members.
Download the SPP Transmission Investment white paper
The Transmission Arms Race Continues: Are You Obtaining Your Share of Transmission Investment (white paper)
The “arms race” for transmission investments continues. In addition to investor-owned utilities (“IOUs”) and transmission companies (“Transcos”), generation and transmission cooperatives (“G&Ts”) and public power in MISO are increasing their levels of investment. But in many cases, G&Ts and public power make transmission investments at a disproportionally lower percentage than their load ratio share. This mismatch results in substantial exposure to transmission rate increases for their members and customers. In order to mitigate the impacts of these transmission rate increases, public power and cooperatives need to focus on how transmission investing can create value for their members.
Download the Transmission Arms Race white paper
Running Transmission as a Business: How G&Ts Can Participate in Today’s Transmission Arms Race (white paper)
There has been an “arms race” for transmission investments among investor-owned utilities (“IOU”) and transmission companies (“Transcos”), resulting in substantial increases in transmission rates for all MISO pricing zones. By contrast, many generation and transmission (“G&T”) cooperatives have not increased their transmission investment at the same rate of growth, resulting in substantial exposure to transmission rate increases for their cooperative members. In order to mitigate these rate increases, a G&T needs to run transmission as a business and put in place a business plan and disciplines that focus on creating value for its members.
Download the Running Transmission as a Business white paper
Going on the Offensive to Counter Dramatic Increases in Transmission Rates: Transmission Investing for Public Power and G&T Utilities (white paper)
Transmission rates across the country and, particularly, in the Midwest Independent System Operator will be dramatically increasing over the next ten years due to new high voltage transmission projects and the steady stream of local transmission facility replacements and upgrades. Municipal joint action agencies, municipals and G&T transmission owners have the opportunity to mitigate or partially hedge these rate increases if they implement an offensive transmission investment strategy. This strategy involves thinking about transmission investment “as a business” and pursuing investments more aggressively than in the past.
Download the Public Power and G&T Utility Transmission Investing white paper
Pulling the Transmission Trigger: Evaluating MISO Transmission Ownership for Municipal Agencies and G&Ts (white paper)
Some public power utilities have not yet decided whether it makes economic sense to join the Midwest ISO (MISO) as a Transmission Owner. In most cases, these municipal agencies and generation and transmission cooperatives are already a Market Participant in the Day 2 energy market, but they have not yet turned over functional control of their transmission assets to MISO and become a Transmission Owner. Expiring grandfathered agreements and a desire to maximize full recovery of future transmission investments are now triggering municipal agencies and generation and transmission cooperatives to consider becoming a transmission owner in MISO. Evaluating whether to become a MISO Transmission Owner is a major strategic decision dealing with multifaceted issues requiring complex analysis. Deciding whether and when to pull the MISO transmission trigger can result in saving hundreds of thousands or potentially millions of dollars.
Download the MISO Transmission Ownership Evaluation white paper
Cost Allocation for the Midwest ISO. ATRR Whac-a-Mole? (white paper)
Cost allocation of transmission investment costs continues to be a major obstacle to building large new transmission and achieving renewables generation goals in the Midwest ISO (MISO) region. Existing methods of cost allocation can result in disproportionate impacts on certain utilities in close proximity to new transmission, so new methods of cost allocation are being proposed. Like the carnival game of Whac-a-Mole, any particular cost allocation method that eases the annual transmission revenue requirement on some MISO regions or utilities will inevitably burden other MISO regions or utilities.
Download the MISO cost allocation white paper
Transmission Investment Analysis
With the recent surge in transmission investment being proposed, our cooperative, public power, and independent developer clients are all asking the same two questions: I know investing in transmission tends to be good, but how much value does it really provide for our members/ customers/owners, and how do I manage the risk?
Download Transmission Investment Analysis Insight
No Time To Waste In Filing for Transmission Rate Incentives
The Midcontinent Independent System Operator (MISO) is undergoing the most ambitious transmission expansion in its history. This process, called Long-Range Transmission Planning (LRTP), consists of four project portfolios, or tranches. In July 2022, the MISO Board of Directors approved the first tranche of transmission solutions developed to provide reliable and economic energy delivery to address future reliability needs. Tranche 1 includes 18 projects, also referred to as LRTPs, with an estimated cost of $10.3 billion. These 18 projects are in the MISO Midwest Subregion and include more than 2,000 miles of transmission lines.
Download the Transmission Hot Topic
MCR Formula Rate Review (brochure)
MCR’s Formula Rate Review is beneficial in a number of ways. It ensures you are:
- Optimizing your ATRR in MISO’s Attachment O/SPP’s Attachment H cost template
- Able to withstand challenges from outside parties
- Can fully meet FERC and MISO protocol requirements
MCR has developed or reviewed over 100 formula rates for clients in SPP, MISO and PJM. Through this extensive experience, MCR has developed a Formula Rate Review to assess whether transmission revenue is being left on the table and whether your transmission-related costs are “bulletproof” against third-party scrutiny.
MCR Transmission Strategy Services (brochure)
MCR helps G&T cooperatives, municipals, public power districts and joint action agencies in SPP and MISO realize the full revenue potential from their transmission assets. We use a collaborative approach for all our transmission engagements with the goal of finding and generating value for our clients. Download our brochure to learn more about the services that add value to our clients.
Download the MCR Transmission Services Brochure
MCR Strategic Transmission Planning Process (brochure)
Helping Joint Action Agency and G&T Transmission Owners
Develop a Strategic Business Plan for Their Transmission Business