At last week’s Commission meeting, I asked how much our jurisdictional utility, SWEPCO, pays to be a member of the Southwest Power Pool (“SPP”), one of two Regional Transmission Organizations (“RTOs) doing business in our state, but the SPP representatives in attendance were not able to answer that question. I have since found the answer — $14 million per year. I have also found out that our other Louisiana utilities – Entergy Louisiana, Entergy New Orleans and CLECO – as well as Louisiana co-ops and municipalities, jointly pay the other RTO, the Midcontinent Independent System Operator (“MISO”) about $48 million per year.
The RTOs see fit to spend our ratepayers’ money on exorbitant salaries, lavish corporate offices, and expensive travel. According to its most recent tax filing (2023), SPP paid its President and Chief Executive Officer $2.5 million in compensation and benefits, while it paid its Chief Operating Officer $1.5 million in compensation and benefits. SPP’s 19 other executives were paid a range of $968 thousand to $290 thousand per year in compensation and benefits. SPP also has a board of directors that meets approximately 5 times a year. SPP pays the nine board members a range of $181 thousand to $121 thousand per year for what SPP estimates to be 5 hours of work per week. That is a rate of $724 per hour, or $36,000 per meeting, for its most highly compensated board member.
MISO pays its executives even more. According to MISO’s most recent tax filing (2023), MISO pays its Chief Executive Officer $4.7 million per year and its President $1.8 million per year in compensation and benefits. MISO pays its 17 other executives a range of $1.2 million to $535 thousand per year in compensation and benefits, even paying a “former officer” $682 thousand in compensation for zero hours of work. MISO also has a board of directors with nine members who are compensated in the range of $201 thousand to $178 thousand per year to work an estimated 10 hours per week attending five meetings per year.
I served as the Louisiana Public Service Commission’s representative to the SPP’s Regional State Committee from 2018 to 2019. In that capacity I attended SPP’s annual meeting at its corporate headquarters in Little Rock, Arkansas. The headquarters is a huge modern complex in a park-like setting, with a parking lot outfitted with its own charging station and full of expensive cars. The annual meeting included social events, catered food and restaurant meals. I represent some of the poorest people in this country who cannot afford such luxuries. I complained about these expenditures when I was the Regional State Committee representative and resigned from that position when my complaints were ignored.
This issue has come up again because both SPP and MISO directed our utilities to shut off the power three times in Louisiana this spring, twice in my district. I simply cannot fathom how Louisiana citizens benefit from paying $62 million in fees to organizations that cannot even keep the lights on. It is difficult to imagine what service these RTO executives provide to the people of Louisiana that warrants such huge annual salaries that are many times greater than what the average Louisiana citizen makes. I urge my fellow commissioners to hold these organizations to account and to take a close look at whether these organizations are worth our people’s hard-earned dollars.
FOSTER CAMPBELL
Public Service Commissioner
Bossier City