Chip Cannon Discusses FERC Challenge Against Midwest Transmission Owners
Chip Cannon, a partner in Akin Gump’s energy regulatory practice, was quoted by the media on a recent complaint filed with the Federal Energy Regulatory Commission (FERC) against the Midcontinent Independent System Operator, Inc. (MISO). The complainants comprise a group of industrial and commercial end-users in the Midwest who argue that the base return on equity (ROE) rates used by transmission companies within MISO are no longer just or reasonable due to the current state of the capital markets.
Law360 notes this is one of several recent ROE rate challenges, including a successful one in New England in August. Cannon said it’s not surprising there would be filings such as these in different markets across the country and he expected to see “some of the same arguments in this [MISO] proceeding that [we] saw in the New England ISO proceeding.”
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Cannon also spoke about the matter with Inside FERC, telling the publication that the MISO and New England cases are “both part of the same issue”—that being whether ROEs established during the economic downturn are still valid. FERC’s decision in the New England case, he added, “will be very enlightening as we move forward in the MISO proceeding,”