On March 31, 2025, FERC granted in part and denied in part Basin Electric Power Cooperative’s (Basin Electric) petition for declaratory order seeking transmission incentives for the Roundup-Kummer Ridge Project, the Tande-Finstad-Leland Olds Project (LOS-Tande Project), and the NE Williston-Folvag 115 kV-Judson-East Fork-Tande Project (Springbrook Project) (collectively, “Projects”). FERC granted the Hypothetical Capital Structure Incentive and the Abandoned Plant Incentive to both the LOS-Tande Project and Springbrook Project, but denied the Hypothetical Capital Structure Incentive for the Roundup-Kummer Ridge Project.
The Projects were identified in Southwest Power Pool, Inc.’s (SPP) 2021 Integrated Transmission Planning (ITP) Assessment Report to satisfy a need for transmission following a specific target area analysis covering the Western North Dakota region. The Roundup-Kummer Ridge Project and LOS-Tande Project both consist of 345 kV transmission lines and necessary substations. The Roundup-Kummer Ridge Project was expected to reach commercial operation in November 2024 and cost $84.5 million. The LOS-Tande Project is expected to reach commercial operation in the first quarter of 2026 and cost $376 million. The Springbrook Project is a new 345/115 kV load-serving substation. The Springbrook Project is expected to reach commercial operation in the fourth quarter of 2025 and cost $39 million.
Basin Electric requested the Abandoned Plant Incentive for both the Springbrook Project and the LOS-Tande Project. Basin Electric argued the two projects faced significant risk from permitting delays, construction delays, and potential policy changes which merited the Abandoned Plant Incentive for both projects. FERC thus approved the Abandoned Plant Incentive for both projects. FERC found that Basin Electric satisfied Order No. 679’s rebuttable presumption requiring a project to “enhance reliability and/or reduce congestion” through both projects’ approval in SPP’s ITP process, and that the total package of incentives for these two projects was narrowly tailored to address the associated risks and challenges.
Basin Electric requested a Hypothetical Capital Structure of 50% debt and 50% equity for the Projects for a 30-year term. Basin Electric argued that its petition was consistent with similar prior approvals of a hypothetical capital structure for the life of the project’s financing. FERC approved the Hypothetical Capital Structure for the Projects except for the Roundup-Kummer Ridge Project. FERC denied the incentive for the Roundup-Kummer Ridge project, finding that Basin Electric had not demonstrated that the project had any remaining risks or challenges given that the in-service date was in the past.
Chairman Christie issued a separate statement both concurring and dissenting in part. Chairman Christie concurred in the denial of the Hypothetical Capital Structure Incentive to the Roundup-Kummer Ridge Project and dissented in the approval of the two incentives for both the LOS-Tande Project and Springbrook Project. Chairman Christie indicated that he dissented on the same reasoning as his prior dissents on this topic, where he has argued that FERC should revisit granting such transmission incentives because they unfairly transfer wealth and risk.
FERC’s order on Basin Electric’s petition, issued in Docket No. EL24-140-000, is available here.
