Citing a 62% jump in requests for interconnections by developers of new generation between 2006 and 2007, the Midwest ISO on June 26 asked FERC to approve changes to its generator interconnection queue process.

"With 402 active projects currently in the queue - including 135 that have been submitted to date in 2008 - the Midwest ISO plan is designed to speed development of approximately 83,000 megawatts (MWs) of requested generation," MISO explained in a related release.

MISO said much of the increase in new generation projects is due to the development of numerous new renewable energy projects, many of which are aimed at meeting state imposed renewable mandates. Wind projects in the Buffalo Ridge, Minn., area alone are seeking to transmit 23,000 MW of new generation, the RTO explained, and another 17,000 MW of renewable resources may be needed to fulfill policy mandates.

After beginning discussions with its stakeholders more than nine months ago on ways to expedite the growing backlog of interconnection cases, MISO developed several reforms to its current interconnection queue process.

The first key component of the reforms would involve Midwest ISO and a potential customer engaging in dialogue before an interconnection application is even submitted, "in order to assure the customers are as prepared as possible when entering the queue." Specifically, MISO said it will meet with potential interconnection customers "to provide training and answer questions on the queue process" before they enter the queue.

"This new phase provides the opportunity to discourage uneconomic and potentially frivolous projects from entering the queue upfront, thereby maximizing the savings for both the Midwest ISO and the potential Interconnection Customer," MISO stated.

Next, MISO is proposing to create a "fast-lane" for generation projects that are ready to proceed and for which interconnection solutions are relatively simple. Projects that meet these criteria will be assigned a shortened study timeline, which is a departure from the first-come, first-served approach currently in effect.

The goal, according to MISO's filing, is to move to a "first-ready, first served" approach to queue management. In this way, projects located where significant transmission constraints exist do not delay interconnection of other projects that could otherwise move ahead. The proposal would also establish an optional process for customers who wish to have their projects studied without entering the queue.

In addition, MISO plans to impose a sliding scale for determining deposits that is meant to reflect more accurately the actual study costs that will be incurred for any given project - the bigger the interconnection request, the greater the required deposit. The proposal would also allow the RTO to use funds deposited by a project that later withdraws from the queue to pay for the restudy that would be required to determine the effect of the withdrawal on lower queued projects.

As several other RTOs have proposed, MISO is also seeking to adopt new, more rigorous progress milestones to ensure that projects that remain in the queue are viable and their sponsors are committed to their completion. Finally, the proposal would allow generation projects to be suspended in a queue position only under extreme conditions, such as force majeure, in order to provide greater certainty to projects further down in the queue.

"We've worked long and hard with our stakeholders to come up with a solution to increasing study costs, and to find the most logical, cost effective way to unclog the queue. On the whole, we are very optimistic that the Midwest ISO and our stakeholders have found a solution that will benefit everyone," said Clair Moeller, MISO vice president of transmission asset management.

Moeller warned, however, that the proposal is not a cure-all, citing the continuing problem of insufficient transmission in highly congested areas and other hurdles facing the projects under development. Nevertheless, she said that the proposal will "allow projects in uncongested areas to proceed in a more timely fashion."

As for those projects being developed in locations where transmission constraints occur frequently, Moeller said MISO is continuing to work with its stakeholders and state agencies to find a way to pre-plan transmission to meet the expected demand for renewable energy projects in these areas. MISO also pledged to continue working with its stakeholders on a process for assessing the impact and effectiveness of the proposed tariff revisions.