The approved proposal creates a new category of transmission projects called Multi Value Projects (MVPs), which are evaluated based on their benefits to the public.
MVPs, the transmission projects that have a regional impact and are part of a regional plan, will now have a 100% regional allocation of costs, ensuring that the cost to upgrade the transmission system is distributed fairly to all involved, Midwest ISO said.
The approved proposal offers a functional approach to identifying which projects should be classified as MVPs as those that have broad benefits to the membership.
It outlines three specific criteria that will be the basis of those evaluations, and sets forth a specific process that will lead to the development of a robust transmission system.
The two existing cost allocation methods for reliability and market efficiency transmission upgrades, also known as RECB I and RECB II, remain largely in their current form.
New generation interconnection projects will continue to pay the cost of their individual network upgrades, as they do under the current tariff.
As a next step, Midwest ISO plans to submit to the FERC two additional compliance filings relating to MVPs and congestion rights as conditions to the approval of the proposal.
