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Category Archives: FERC

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President Trump to Restore Quorum at FERC

Posted in FERC
It has been widely reported that President Donald J. Trump is preparing to nominate three new commissioners to fill existing vacancies at the Federal Energy Regulatory Commission.  The prospective nominees are Kevin J. McIntyre, Neil Chatterjee, and Robert F. Powelson.  A little bit about each: Kevin McIntyre is co-head of the energy practice of Jones… Continue Reading

FERC and CPUC Approve Utilities’ Innovative Request to Own a 50 MW Solar Project in Partnership with a Tax Equity Investor

Posted in California, FERC
For the first time, a regulated electric utility, Liberty Utilities (CalPeco Electric) LLC (“Liberty”), recently obtained all state and federal regulatory approvals to partner with a tax equity investor to acquire, own, and operate a utility-scale solar project.  By using a tax equity partnership, the utility can more efficiently take advantage of federal solar tax… Continue Reading

Can Electric Storage Resources Collect Both Cost-Based and Market-Based Revenue?

Posted in FERC
The short answer is: yes, with a few caveats. On January 19, 2017, the Federal Energy Regulatory Commission (“FERC”) issued a policy statement that, under appropriate circumstances, electric storage resources may concurrently receive cost- and market-based revenues for providing separate services. If an electric storage resource owner/operator wants to receive cost-based rate recovery and market-based… Continue Reading

FERC Proposes New Market Rules to Better Integrate Energy Storage and Distributed Resources into Organized Markets

Posted in FERC
On November 17, 2016, the Federal Energy Regulatory Commission (“FERC”) issued a Notice of Proposed Rulemaking seeking comments on its proposal to remove barriers to the participation of electric storage resources and distributed energy resource aggregators in the organized wholesale electric markets. If successful, these new rules could unlock huge new market opportunities for distributed… Continue Reading

FERC Seeks Comments on Potential Changes to Review of Mergers and Acquisitions

Posted in Federal, FERC
The Federal Energy Regulatory Commission (“FERC” or “Commission”) has asked for comments on procedures established for its review of mergers and acquisitions pursuant to section 203 of the Federal Power Act (“FPA”). In a Notice of Inquiry (“NOI”) issued on September 22, 2016, the Commission explained that it is seeking to “harmonize” its analysis of… Continue Reading

FERC Requires New England Generators to Reveal How Bids Formulated

Posted in Electric Power, FERC
On August 8, 2016, the Federal Energy Regulatory Commission (FERC) issued its order on remand from the D.C. Circuit on FERC’s approval of ISO New England’s (ISO-NE) 2013-14 winter reliability program, results, and rates. (TransCanada Power Marketing Ltd v. FERC, No. 14-1103). In a ruling that could have a significant impact on the rates that… Continue Reading

Securing New Pipeline Capacity in Today’s Turbulent Gas Market: Best Practices and Things to Know

Posted in FERC, Oil & Gas
With the rapid growth of natural gas production from shale plays and growing demand due to low gas prices, pipeline companies have been scrambling to expand and reconfigure their systems to serve the needs of a changing gas marketplace.  Federal Energy Regulatory Commission (FERC) rules generally govern the commercial terms pipelines can offer prospective capacity… Continue Reading

FERC, NERC and Business Blackout: New CIP Standards and Fictional Cyber Attacks

Posted in FERC, NERC, Rulemakings
The Federal Energy Regulatory Commission (FERC) issued a Notice of Proposed Rulemaking (NOPR) July 16, 2015, proposing to approve various Critical Infrastructure Protection (CIP) reliability standards proposed by the North American Electric Reliability Corporation (NERC) and further proposed to direct NERC to develop a new CIP reliability standard to protect the bulk electric system (BES)… Continue Reading

FERC Proposes Tighter “Hold-Harmless” Commitment Standards for Utility Mergers

Posted in Electric Power, FERC
The Federal Energy Regulatory Commission (FERC) is proposing to revise its standards for determining whether proposed utility mergers and other asset transfer transactions subject to its jurisdiction under Section 203 of the Federal Power Act have the potential to have an adverse effect on cost-based rates for transmission service or wholesale electric service. FERC’s policy… Continue Reading

FERC ORDERS NEW YORK ISO TO REFUND OVER-CHARGES RESULTING FROM HURRICANE SANDY

Posted in FERC, Rulemakings
The Federal Energy Regulatory Commission has ordered the New York Independent System Operator, Inc. to reopen and resettle billings for electricity it supplied during the November/December 2012 billing periods, and to refund to DWT client GDF Suez Energy Resources, NA over-charges erroneously billed to Suez as a result of Hurricane Sandy.  GDF Suez Energy Resources,… Continue Reading

FERC Announces Technical Conferences Focused on Clean Power Plan

Posted in Electric Power, Federal, FERC
The Federal Energy Regulatory Commission has announced plans to hold a series of technical conferences around the country to discuss the impact of the proposed Clean Power Plan on electric utilities.  The first of these conferences will be a National Overview technical conference to be held at the FERC on February 19, 2015.  Subsequent regional… Continue Reading

FERC Accepts PJM’s Proposal to Limit Imported Capacity

Posted in Federal, FERC, Rulemakings
Owners of generation capacity in PJM have often complained of what they perceive as favorable treatment under rules governing PJM’s annual forward capacity auctions when applied to competing resources, namely generation located outside the region and demand resources located within the region.  On April 22, the Federal Energy Regulatory Commission (FERC) accepted tariff changes proposed… Continue Reading

FERC Provides Important Guidance Regarding Confidentiality Agreements and “Duty to Support” Clauses

Posted in Federal, FERC, Oil & Gas, Rulemakings
Yesterday, I wrote a blog post describing a FERC order that, for the first time ever, would have allowed an interstate oil pipeline to grant preferential rates and capacity rights to shippers making volume commitments through an open season process conducted outside the context of a pipeline project.  FERC’s order is also noteworthy for the general… Continue Reading

FERC Rejects Preferential Rates and Capacity Rights for Committed Shippers on Pre-Existing Oil Pipeline Capacity

Posted in Federal, FERC, Oil & Gas, Rulemakings
The Federal Energy Regulatory Commission (FERC) issued an order on March 20, 2014, rejecting Colonial Pipeline Company’s (Colonial) petition for a declaratory order (PDO) that, for the first time ever, would have allowed an interstate oil pipeline to grant preferential rates and capacity rights to shippers making volume commitments through an open season process conducted outside… Continue Reading

The CFTC and FERC Agree to Disagree on the Reach of Each Agency’s Jurisdiction to Police Energy Markets

Posted in Federal, FERC, Rulemakings
The Federal Energy Regulatory Commission (FERC) and the Commodity Futures Trading Commission (CFTC) have entered into a long-overdue, congressionally mandated Memorandum of Understanding (MOU) to establish procedures to resolve conflicts between the agencies over their respective overlapping jurisdictions to police, respectively, physical energy markets (i.e., contracts for physical delivery) and financial energy markets (i.e., futures,… Continue Reading

FERC Requires Generators to File Reactive Power Rate Schedules

Posted in Federal, FERC
By Margaret Claybour, Jim Mitchell, and Glenn Benson FERC, on October 17, 2013, adopted a new generic policy requiring all generators that provide jurisdictional reactive power service to have a rate schedule on file with FERC setting forth the rates, terms, and conditions under which reactive power is provided, regardless of whether the generator is… Continue Reading

FERC Extends Deadline for Filing Q3 2013 EQRs

Posted in Federal, FERC, Test
Yesterday, on October 10, 2013, FERC issued a long-anticipated order granting public utilities and non-public utilities an extension of time to file their third quarter (Q3) Electric Quarterly Reports (EQRs).  FERC will notify EQR filers at a time yet to be determined, when its new web-based approach is available and provide the new deadline for… Continue Reading

FERC Approves Enforcement Settlement Regarding California Bidding Practices

Posted in California, Federal, FERC
By Mark Perlis On July 30, 2013, FERC approved an enforcement settlement agreement with JP Morgan, which requires JP Morgan to pay a civil penalty of $285 million and disgorgement of unjust profits of $125 million in connection with abusive bidding practices in CAISO Day-Ahead and Real Time markets for generating units scheduled by JP… Continue Reading

D.C. Court of Appeals Sets New Precedent in Affirming FERC Enforcement Penalties Against a Seller Making False or Misleading Submissions to FERC or to a FERC-Approved Market Organization

Posted in Federal, FERC
By Mark Perlis The District of Columbia Circuit Court of Appeals, in Kourouma v. FERC, (Docket No. 11-1283, July 23, 2013), has set new precedent affirming FERC’s authority to enforce penalties for a seller’s violation of its Market Behavior Rule (18 CFR § 35.41(b)) prohibiting the submission of false or misleading information or the omission… Continue Reading

FERC Relaxes Rules for Sales of Ancillary Services

Posted in Federal, FERC
The Federal Energy Regulatory Commission has expanded the ability of owners of generation facilities to sell certain generation-related ancillary services needed by public utility transmission providers at market-based rates.  In its order, the FERC explained that it was doing so to foster competition and transparency in ancillary services markets.  The revised rules are expected to… Continue Reading

FERC Lays Groundwork for Open Communication Between Natural Gas and Electric Industries

Posted in Electric Power, Federal, FERC, Oil & Gas
The Federal Energy Regulatory Commission, in a Notice of Proposed Rulemaking issued on July 18, 2013, is proposing to facilitate increased coordination between electric transmission operators and natural gas pipelines. FERC is proposing to amend its regulations to provide explicit authority for interstate natural gas pipelines and electric transmission system operators to share non-public operational information… Continue Reading