EXHIBIT D-3
UNITED STATES OF AMERICA
BEFORE THE
FEDERAL ENERGY REGULATORY COMMISSION
ALLIANT ENERGY CORPORATE SERVICES, INC. ) DOCKET NO. EC99- -000
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APPLICATION TO TRANSFER OPERATIONAL CONTROL OVER
TRANSMISSION FACILITIES TO THE MIDWEST INDEPENDENT
TRANSMISSION SYSTEM OPERATOR, INC.
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Pursuant to section 203 of the Federal Power of the Federal Power Act
("FPA"), 16 U.S.C. ss. 824b, Alliant Energy Corporate Services, Inc. 1 ("Alliant
Energy Corporate Services") hereby petitions for approval of the transfer of
operational control over substantial portions of the jurisdictional transmission
facilities of the Alliant Energy Operating Companies to the Midwest Independent
Transmission System Operator, Inc. ("Midwest ISO") to be effective on the
Transfer Date as defined in the Midwest ISO Agreement. In support thereof,
Alliant Energy Corporate Services states the following.
Alliant Energy Corporation ("Alliant Energy") was formed on April 21, 1998
as a result of the merger between WPL Holdings, Inc., IES Industries Inc. and
IPC. Alliant Energy is a registered public utility holding company and is
regulated by the Securities and Exchange Commission under the Public Utility
Holding Company Act of 1935. Alliant Energy has three direct public utility
subsidiaries; WPL, IPC and IES. In addition, WPL has a wholly owned utility
subsidiary, SBWGE. All of Alliant Energy's direct public utility subsidiaries
are engaged in the production, transmission, and distribution of electricity for
domestic, commercial and industrial use in the states of Iowa, Wisconsin,
Illinois and Minnesota.
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1 Alliant Energy Corporate Services Inc. is a service company affiliate of
Wisconsin Power & Light Company ("WPL"), IES Utilities Inc. ("IES"), Interstate
Power Company ("IPC") and South Beloit Water, Gas & Electric Company ("SBWGE").
For the purposes of this application WPL, IES, IPC and SBWGE shall be
collectively refered to as the "Alliant Energy Operating Companies."
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Alliant Energy, as part of its merger approval process filed, in Commission
Docket No. ER96-2560-000, a system coordination and operating agreement to,
among other things, govern on a single-system basis the coordinated operations
and joint planning of Applicants' transmission facilities. In order to implement
the Coordination Agreement and perform other system-wide tasks, Alliant Energy
formed a subsidiary service company, Alliant Energy Corporate Services
("Services"). Services acts as an agent for the Alliant Energy Operating
Companies' to, among other things, operate their transmission facilities as a
single integrated system pursuant to Alliant Energy's open access transmission
tariffs ("OATT").
I. INTRODUCTION
On January 15, 1998, certain Midwest ISO Public Utilities 1
("Participants") filed an application in Docket No. EC98-24 ("January 15th
Filing"), pursuant to Section 203 of the FPA, for approval of the transfer of
operational control of substantial portions of their jurisdictional transmission
facilities to the Midwest ISO.2 Participants filed in Docket No. ER98-1438 an
open access transmission tariff, an agreement setting forth the structure of the
Midwest ISO and establishing the rights and obligations of the ISO and the
various ISO members,3 and other documents intended to implement the Midwest
ISO.
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1 The Midwest ISO Public Utilities that were the subject of the January 15th
Filing were The Cincinnati Gas & Electric Company, Commonwealth Edison Company,
Commonwealth Edison Company of Indiana, Illinois Power Company, PSI Energy,
Inc., Wisconsin Electric Power Company, Union Electric Company, Central Illinois
Public Service Company, Louisville Gas & Electric Company, and Kentucky
Utilities Company.
2 In addition, Hoosier Energy Rural Electric Cooperative, Inc., ("Hoosier") and
Wabash Valley Power Association, Inc. ("Wabash") were signatories to the Midwest
ISO Agreement. Collectively, Hoosier, Wabash and the Midwest ISO Public
Utilities are referred to as the Midwest ISO Participants. Because Hoosier and
Wabash are not subject to this Commission's jurisdiction, they did not join in
the section 203 filing.
3 The full name of this agreement is the Agreement of Transmission Facilities
Owners to Organize the Midwest Independent. Transmission System Operator, Inc.,
a Delaware" Non-Stock Corporation.
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By order issued on September 16, 1998, the Commission found that the
transfer proposed in the January 15th Filing was in the public interest and
approved the section 203 application, subject to certain conditions. Midwest
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Independent System Transmission Operator, Inc., et al, 84 FERC P. 61,231, at
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62,161, 62,181 (1998) ("September 16th Order"). The Commission, however, noted
that some of the Midwest ISO Participants that executed the ISO agreement after
the initial filings had not submitted Section 203 filings. 84 FERC at 62,139
n.5. The Commission, however, ordered the submission of the Section 203 filings.
Therefore, the instant filing is being submitted to allow the Alliant
Energy Operating Companies to transfer operational control of the facilities
identified herein to the Midwest ISO effective on the Transfer Date. As the
Commission has previously found, the establishment of the Midwest ISO, along
with the transfer of the facilities referenced in the January 15th Filing, is
consistent with the public interest. For the same reason, the Commission should
find that the proposed transfer reflected in this filing is consistent with the
public interest, and approve Services' application subject to the same
conditions that have been imposed on the other Midwest ISO Public Utilities.4
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4 On October 16, 998, the Midwest ISO Participants have filed a request for
rehearing of the 1, September 16th Order. Nothing stated in the instant pleading
should be deemed as a waiver of any argument raised in the request for
rehearing.
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II. ALLOWING THE ADDITIONAL MIDWEST ISO PUBLIC UTILITES
TO TRANSFER THE SUBJECT FACILITIES WILL PROVIDE
SUBSTANTIAL PUBLIC BENEFITS
In the September 16th Order, the Commission found that the establishment of
the Midwest ISO, along with the proposed transfer of facilities reflected in the
January 15th Filing, was consistent with public interest and would provide
substantial operational and economic benefits. 84 FERC at 62,163, 62,181; see
also 84 FERC at 62,185 (Massey, concurring) (stating "[t]here is a great deal to
like about today's proposal"). As has been shown, the Midwest ISO will serve to
benefit sellers and buyers of electricity alike by providing for regional
transmission service at non-pancaked rates (84 FERC at 62,167), and increasing
reliability and the ability to address transmission constraints on a region-wide
basis (84 FERC at 62,163). The fact that the Alliant Energy Operating Companies
have joined the Midwest ISO serves to increase the Midwest ISO's ability to
provide these benefits by enlarging the transmission system under the Midwest
ISO's control.
III. DESCRIPTION OF FACILITIES
The transmission facilities the Alliant Energy Operating Companies are
transferring to the Midwest ISO's functional control ("Transferred Facilities")
are shown in the system schematics included as Exhibit I to today's filing.
These facilities consist of virtually all network facilities above 100 kV and
network transformers whose two highest voltages are above 100 kV. The guidelines
for the facilities to be transferred are set forth at Article 1, Section L of
the ISO Agreement and in Appendix H to ISO Agreement.
IV. PUBLIC INTEREST OF THE PROPOSED TRANSFER
As stated in the January 15th Filing (at 6), and as the Commission found in
the September 16th Order, the proposal to vest the Midwest ISO with operational
control over the Transferred Facilities is clearly consistent with the public
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interest. By enhancing reliability, increasing the Midwest ISO's ability to
address transmission constraints, and expanding the region over which sellers
and buyers can transmit power at non-pancaked rates, the addition of these new
members further substantiates the fact that the proposed transfer is in the
public interest.
V. THE MIDWEST ISO PUBLIC UTILITIES
The Alliant Energy Operating Companies, along with the public utilities who
were the subject of the January 15th Filing, own electric transmission
facilities that are subject to this Commission's jurisdiction. In accordance
with Atlantic City Elec. Co., 76 FERC P. 61,306, at 62,513 (1996), and with the
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Midwest ISO order, 84 FERC at 62,139 n.5, the Alliant Energy Operating Companies
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require prior Commission approval to transfer operational control over their
transmission facilities to the Midwest ISO.
VI. REQUEST FOR WAIVER
In the January 15th Filing (at 3), the Midwest ISO Public Utilities noted
that the Commission generally has not applied the filing requirements set forth
at 18 C.F.R. ss.ss. 33.2 and 33.3 to the transfers of facilities pursuant to the
establishment of an independent system operator, and requested waiver of these
regulations. The Commission granted that waiver, and the Commission should grant
a similar waiver here. Good cause exists for granting such a waiver. These
filing requirements are intended to ensure that section 203 applicants supply
the Commission with sufficient information to determine whether the proposed
transfer is consistent with the public interest. The detailed information
contained in the January 15th filing and today's application provide the
Commission with more than enough information to evaluate today's filing.
Accordingly, the Commission, which already has found that the transfer of
similar facilities by the initial group of Midwest ISO Public Utilities is in
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the public interest, has a sufficient record upon which it can conclude the
proposed transfer is similarly consistent with the public interest.
VII. NOTICE
To fulfill the requirement of section 203 that the Commission provide
reasonable notice to certain identified officials and agencies, a copy of this
filing has been served on the utility regulatory commissions for each state in
which any of the Transferred Facilities reflected in this filing are located.
This filing will also be served today on affected customers and consumer
advocates, along with all parties on the official service lists maintained by
the Commission in Docket Nos. EC98-24 and ER98-1438.
In addition, we request that correspondence and communications with respect
to this pleading be sent to, and that the Commission's Secretary include on the
official service list established in this proceeding, the following:
Kent M. Ragsdale Douglas C. Collins
Managing Attorney General Manager-Delivery System Planning
Alliant Energy Corporate Services, Inc. Alliant Energy Corporate Services, Inc.
200 First Street, SE 1000 Main Street
P.O. Box 351 P.O. Box 769
Cedar Rapids, IA 52406-0351 Dubuque, IA 52004-0769
319.398.7765 - telephone 319.557.2217 - telephone
319.398.4533 - fax 319.557.2202 - fax
[email protected] e-mail [email protected] e-mail
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VIII. CONCLUSION
WHEREFORE, the Commission shall issue an order pursuant to section 203 of
the Federal Power Act, finding that the proposed transfer of operational control
over the Transferred Facilities to the Midwest ISO reflected in this filing
effective on the Transfer Date is consistent with the public interest.
Respectfully submitted,
Kent M. Ragsdale
Managing Attorney
Alliant Energy
200 First Street SE
P.O. Box 351
Cedar Rapids, IA 52406-0351
(319) 398-7765 - telephone
(319) 398-4533 - fax
[email protected] - e-mail
December 3, 1999
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