UPDATE 1-Louisiana's Cleco seeks to join Midwest power grid

Fri Dec 7, 2012 3:29pm EST

Related Topics

* Cleco move follows Entergy into Midwest ISO
    * Move could be another loss to SPP power grid
    * Cleco hopes to integrate into MISO by Jan. 2014


    By Scott DiSavino
    Dec 7 (Reuters) - Louisiana power company Cleco Corp 
on Friday said it filed a request with Louisiana utility
regulators to join the group that operates much of the power
grid in the U.S. Midwest.
    Cleco's decision to join the Midwest Independent
Transmission System Operator (MISO), follows a move by its much
bigger neighbor Entergy Corp in April 2011 to integrate
its transmission systems in Louisiana, Arkansas, Mississippi and
Texas into the Midwest power grid.
    Entergy, which in December 2011 said it would spin off its
transmission systems to Michigan-based power transmission
company ITC Holdings Corp in a $1.78 billion
transaction, hopes to fully join MISO and complete the ITC
transaction by the end of 2013.
    MISO operates the power system in 11 U.S. Midwest states and
the province of Manitoba in Canada.
    Cleco said in a release that MISO has a developed power
market that will produce benefits for its customers through
increased reliability and more efficient dispatch of generation.
    "As our market structure changes, Cleco is positioned well
to participate in MISO, known for the value it creates for its
members and their customers through strict market oversight,"
Bruce Williamson, president and CEO of Cleco, said in the
release.
    "Cleco's fleet is environmentally sound, well maintained and
should perform well under MISO's operating guidelines,"
Williamson said.
    Entergy also said its integration into MISO would help
customers, resulting in projected savings of $1.4 billion in the
first decade.
    Cleco did not disclose the value of the benefits it hopes to
achieve by joining MISO.
    MISO started overseeing the Entergy power system on Dec. 1,
2012 as the company's independent coordinator of transmission, a
spokesman for Entergy told Reuters Friday.
    
    SPP LOSES ANOTHER
    Before that, the Southwest Power Pool (SPP), a rival power
grid operator that has fought Entergy's move to the MISO, had
been Entergy's independent coordinator of transmission since
2006, the Entergy spokesman said.
    SPP operates the power grid in several states including,
Oklahoma, Texas, New Mexico, Kansas, Nebraska, Arkansas,
Louisiana, Missouri and Mississippi.
    Cleco spokeswoman Robbyn Cooper told Reuters that Cleco is a
non-transmission member of SPP. She said Cleco administers its
own transmission system and SPP is the company's reliability
coordinator.
    "This move by Cleco was expected and anticipated. The Cleco
transmission system is deeply imbedded within the Entergy
system," SPP spokesman Tom Kleckner told Reuters.
    SPP has long argued that it would be in the best interest of
its members if Entergy were to remain within SPP.
    In the press release, Cleco said if it is successful in
joining the MISO, Cleco will retain ownership of its
transmission and generation assets, and the MISO will take over
the operation of Cleco's transmission assets and dispatch of its
generation.
    Cleco said it hopes to integrate into the MISO in January
2014.
    Entergy hopes to integrate into the MISO on Dec. 19, 2013.
    Cleco serves about 281,000 customers in Louisiana and owns
about 2,500 megawatts (MW) of generation.
    Entergy serves about 2.8 million customers in Arkansas,
Louisiana, Mississippi and Texas and owns about 30,000 MW of
generation.
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