On October 31, 2018, FERC approved three proposed revisions to the Open Access Transmission, Energy, and Operating Reserve Markets Tariff (“Tariff”) of the Midcontinent Independent System Operator, Inc. (“MISO”). These revisions establish categorical time limits to expressly bar settlement disputes submitted after these specified time periods (“Time Bar Revisions”). The proposed Tariff revisions became effective November 1, 2018.
On May 16, 2018, MISO submitted the Time Bar Revisions to improve market certainty, promptness, and availability of information. Specifically, MISO proposed to set time limits for the initiation by market participants of market and transmission settlement disputes and alternative dispute resolution (“ADR”), and any related changes to settlement statements. Regarding market and transmission settlement disputes, MISO proposed a set of Tariff revisions. First, MISO proposed to add a new section 12A (Limitations on Claims and Adjustments) to sections 12 and 14.1 of the Tariff, including Attachment HH (Dispute Resolution Procedures) of the Tariff, that will establish a 120-calendar day time limit for a market participant’s initiation of a transmission or market settlement dispute. For transmission settlements, the 120 days would commence from the date of the first transmission settlement statement, invoice or bill issued for the related transaction. For market settlements, 120 days would start from the operating day. Second, MISO proposed to add new sections 12A(c) and 12A(d) to install a two-year time limit for the resettlement of settlement statements for any MISO system or software error occurring after the effective date of section 12A and that may be discovered in the course of MISO’s handling of a timely settlement dispute. This two-year limit applies when MISO unilaterally discovers the error, without a related dispute submission by a market participant. For ADR disputes, MISO proposed a new section I.B (Period for Submitting ADR Requests) to Attachment HH. As part of this new section, market participants must bring their claim involving a transmission or market settlement within the 120-day time limit of the new section 12A before the claim can be eligible as an informal or formal ADR dispute. Under the new section I.B.2, MISO would establish a 90-calendar day time limit for initiating an informal ADR dispute, beginning on the day the timely market or transmission settlement dispute was “resolved or determined” by MISO. In addition, a new section I.B.3 of Attachment HH establishes a similar 90-calendar day time limit initiating a formal ADR dispute.
FERC approved MISO’s proposed Tariff revisions, finding them each just and reasonable. FERC agreed with MISO that limiting corrections to continuing errors strikes an appropriate balance between requiring market participants to promptly initiate claims involving readily discoverable one-time MISO errors and the correction of more long-lasting MISO errors that may not be readily discoverable. FERC conditioned its approval on MISO submitting a compliance filing to make certain minor revisions to the language in sections 12A(b) and 12A(d), and Attachment HH, Sections I.B.3, and I.B.4. MISO was directed to make a compliance filing within 30 days of the date of the issued order.
A copy of FERC’s order is available here.