FERC Sets New ROE Determinations for SPP and Bangor Hydro
Recent FERC orders establish authorized returns on equity ranging from 9.57% to 11.06% across multiple jurisdictions.
FERC authorized an 11.06% return on equity (ROE) for Southwest Power Pool, Inc. in docket ER26-1136-000. The March 31 order follows testimony that the rate is commensurate with investments of similar risk, ensuring the utility can maintain operations.
In a separate action on March 30, FERC established a 10.4% ROE for Southwest Power Pool, Inc. et al. under dockets ER26-102-000 and ER26-102-001.
This determination includes a 9.90% base ROE for Upper Missouri. The final figure incorporates a conditionally granted 50 basis point adder for Upper Missouri’s participation in the SPP Regional Transmission Organization.
FERC also addressed the First Complaint proceeding involving Bangor Hydro-Electric Company et al. in a March 19 order. The commission set a replacement ROE of 9.57% for the Non-Electric Transmission Owners (NETOs).
This 9.57% rate replaces a previous 11.14% ROE, which FERC found to be unjust and unreasonable.