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June 24, 2015

RMU Receives FERC Order for $ 1.2 M per Year Transmission Tariff

Rochelle Municipal Utilities is pleased to announce the receipt of a FERC (Federal Energy Regulatory Commission) Order for its Transmission Tariff.

Rochelle Municipal Utility applied on April 7th 2015 for a tariff for its 20 miles of 138 kV transmission assets.

The tariff allows for $ 1.2 Million per year in operational revenue requirements which essentially comes into RMU as power purchase credits.

Next year this tariff will increase to $ 1.7 Million per year. Over a 30 year period the net present value of these credit streams amount to tens of millions of dollars.

According to Dan Westin of RMU: “This amazing result is a game changer for RMU and Rochelle. Another very unique asset in Rochelle has been positioned for maximum value for RMU’s customers and the citizens of Rochelle. In addition to these credits this project has also created a full inventory of RMU’s electrical enterprise’ capital assets as well as a complete set of operational procedures in the areas of PJM integration agreement, zonal Interconnect agreement, zonal restoration plan, Data Interconnection diagrams and other key procedures for the provision of electrical service reliability. It also provides for new job function opportunities for RMU’s personnel.”