Laserfiche WebLink
Page 1 of 2 <br />nbirkholz@goslawfirm.com <br />From: "Jablon, Robert A." <robert.jablon@spiegelmcd.com> <br />To: "Marv" <marvg@windom-mn.com>; <nbirkholz@goslawfirm.com> <br />Cc: <alucero@northlc.com>; <SStein@rwbeck.com>; <DPainter@rwbeck.com>; "Bob Schulte" <br /><rhs@schulteassociates.com>; "Steve Thompson" <stevet@utplus.com>; <br /><amcMahon@nixonpeabody.com>; "Colleen Knudtson" <colleenk@utplus.com>; "'Central Files" <br /><central@SpiegelMcD.com>; "Shamraj, Larissa" <larissa.shamraj@spiegelmcd.com>; "Coleman, <br />Sharon" <sharon.coleman@spiegelmcd.com> <br />Sent: Thursday, April 03, 2008 4:10 PM <br />Subject: RE: CMMPA -Transmission Assignment Agreement -Request for Execution <br />I send this a-mail after having spoken with Mike Gavin and Andrew, whom I believe are agreement. <br />The term "operational control" comes out of FERC orders in which FERC wanted to recognize a wholesale <br />transmission grid over which all wholesale transmission users (as opposed to retail users -- i. e., end electricity <br />users or utility residential and business customers) could transmit without utilities like Xcel or Windom giving up <br />transmission ownership. Practically, operational control in a physical sense means that MISO can force <br />transmission over facilities as part of the grid, including to offset transmission congestion or protect against <br />emergencies. However, practically for Windom little if anything will change. Power flows over the grid now as it <br />flows and realistically I do not anticipate that uses of your facilities will change. <br />Thus, Windom may be entitled to receive payment for your transmission essentially for its use as it is being used <br />now. But MISO can only pay you if it has "operational control" over the transmission. Because transmission <br />costs are included in MISO's transmission costs and the rates all pay for transmission, MISO can only justify <br />payment to Windom if MISO has "operational control." The above refers to "operational control" in a physical <br />sense, that is the operation of the transmission system. <br />MISO will not get "operational control" of Windom's transmission in a financial sense. All that is happening is that <br />Windom will give CMMPA authority to submit Windom's transmission costs to MISO (i.e., acost-of-service for <br />Windom to recover your "revenue requirements" or as it is known in the trade your ATRR). MISO will review <br />Windom's ATRR (i.e., the costs for your transmission, including an allowed return similar to that which Xcel earns) <br />and if it approves, it will pay CMMPA who will pay Windom. No financial rights will be transferred to MISO. <br />However, all grid users will help pay for Windom transmission (just as you now pay for other grid owners <br />transmission now through transmission rates). At present Windom pays for IOU and cooperative transmission <br />through transmission rates plus all of its own transmission costs. <br />I hope that this helps. <br />If you have questions, please call. <br />Privileged and Confidential <br />Robert A. Jablon <br />robert. jablon~spiegelmcd. com <br />Spiegel & McDiarmid t,t,P <br />1333 New Hampshire Ave., NW <br />Washington, DC 20036 <br />Direct Dial 202.879.4070 <br />Home 202.333.5332 <br />Cell 202.669.4820 <br />Fax 202.393.2866 <br />07802.004 <br />From: Marv [mailto:marvg@windom-mn.com) <br />Sent: Thursday, April 03, 2008 3:47 PM <br />To: nbirkholz@goslawfirm.com <br />4/ 16/2008 <br />