Energy & Environmental Law Blog

Energy & Environmental Law Blog

Analyzing the critical energy and environmental issues of the day

Tag Archives: FERC

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

Small Solar Generators to Find It Easier to Connect to the Grid

Posted in Federal, Renewables
Yesterday, the Federal Energy Regulatory Commission (FERC) unanimously approved a rule that would reduce existing hurdles for small solar generators attempting to connect to the electric grid, an especially helpful move in states in which the solar industry is booming. Stemming from a petition filed last year by the Solar Energy Industries Association (SEIA), the … Continue Reading

FERC Approves Enforcement Settlement Regarding California Bidding Practices

Posted in California, Federal, Uncategorized
From Partner Mark Perlis of our DC office: FERC today 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 the California Independent System Operator (“CAISO”) Day-Ahead and Real Time … Continue Reading

FERC Relaxes Rules for Sales of Ancillary Services at Market-Based Rates

Posted in Federal, Rulemakings
From energy partner Jim Mitchell of our DC office: 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 … Continue Reading

7th Circuit Affirms Socializing Costs of Multi-Value Electric Transmission Projects

Posted in Federal, FERC
A recent advisory from DWT partner Glenn Benson: On June 7, 2013, the U.S. Court of Appeals for the 7th Circuit issued a decision in Illinois Commerce Commission, et al. v. Federal Energy Regulatory Commission, affirming Federal Energy Regulatory Commission (“FERC”) orders that conditionally approved proposed tariff sheets filed by the Midcontinent Independent Transmission System … Continue Reading

NYISO’s Proposal to Constrain Market Power in New Capacity Zones Approved by FERC

Posted in Federal, FERC
A recent advisory from DWT partner Glenn Benson: On June 6, 2013, the Federal Energy Regulatory Commission (“FERC”) issued an Order conditionally accepting the New York Independent System Operator, Inc.’s (“NYISO”) proposal to implement buyer-side and supplier-side market power mitigation measures for monthly installed capacity (“ICAP”) spot markets in new capacity zones similar to measures … Continue Reading

EEI Urges FERC to Support Transmission Investment

Posted in Electric Power, Federal, FERC
The Edison Electric Institute recently issued a White Paper discussing the need for utilities to receive rates of return on investments in transmission facilities sufficient to enable them to attract capital for expansion of the nation’s electric transmission grid.  FERC has encouraged utilities to create a robust interstate transmission network capable of protecting the reliability … Continue Reading

Senator Wyden Urges FERC to Support Regional Flexibility in Order No. 1000 Compliance Filings by Northwestern Utilities

Posted in Electric Power, FERC, Northwest
From Jim Mitchell of our DC office and John Cameron of our Portland office: In a letter to FERC Chairman Jon Wellinghoff dated March 5, 2013, Senator Ron Wyden (D-OR), the new Chairman of the Senate Energy and Natural Resources Committee, strongly urged the FERC to support principles of regional flexibility when reviewing filings by … Continue Reading

FERC Adopts Guidelines for Allocation of Capacity on New Merchant Transmission Projects & New Cost-Based Participant-Funded Transmission Projects; Proposes Reforms for Small Generator Interconnections

Posted in Electric Power, Federal, FERC, Renewables
The Federal Energy Regulatory Commission acted at its meeting on January 17, 2013, to facilitate non-discriminatory access to the transmission grid by (a) issuing guidelines for allocation of capacity on new merchant transmission projects and cost-based participant-funded transmission projects, and (b) proposing new rules for interconnection of small generators (20 MW or smaller) to the … Continue Reading

FERC Suspension of Market-Based Rate Authority May Affect Existing Power Supply Arrangement

Posted in Federal, Rulemakings
From our colleague Jim Mitchell in DC: The authority of J. P. Morgan Ventures Energy Corporation (“JP Morgan”) to sell electric energy, capacity, and ancillary services at market-based rates for six months, beginning in April 2013, was recently suspended by the Federal Energy Regulatory Commission (the “FERC”) for violation of certain FERC rules. Although the … Continue Reading

FERC Suspension of Market-based Rate Authority May Affect Existing Power Supply Arrangement

Posted in Federal, FERC
The authority of J. P. Morgan Ventures Energy Corporation (“JP Morgan”) to sell electric energy, capacity, and ancillary services at market-based rates for six months, beginning in April 2013, was recently suspended by the Federal Energy Regulatory Commission (“FERC”) for violation of certain FERC rules. Although the Order only affects the market-based rate authority of … Continue Reading

FERC to Revise Rules for Allocation of New Transmission Capacity By Non-Incumbent Developers

Posted in Federal, FERC
The Federal Energy Regulatory Commission (FERC) has proposed to provide developers of new merchant transmission projects and new cost-based, participant-funded transmission projects with increased flexibility to offer terms and conditions of service that may be desired by potential transmission service customers.  Under this proposal, transmission developers would be permitted to allocate up to 100% of … Continue Reading

FERC Proposes to Revise Definition of “Bulk Electric System” for Determining Who Must Comply with Federal Reliability Standards

Posted in Federal, Rulemakings
From my D.C. colleague Jim Mitchell: The Federal Energy Regulatory Commission (FERC) has issued a Notice of Proposed Rulemaking (NOPR) to revise the definition of “Bulk Electric System” (BES). This definition is important because it determines which transmission system elements are subject to mandatory electric reliability standards designed to ensure the uninterrupted operation of the … Continue Reading

Proposed Settlement Between Environmental Groups and Federal Agencies Would Revise Procedures for Designation of Western Energy Corridors

Posted in California, FERC, Land Use, Northwest, Renewables
Procedures for designation of West-wide Energy Corridors pursuant to Section 368 of the Energy Policy Act of 2005 are to be revised to allay concerns that (i) construction of energy-related facilities within such corridors would adversely affect environmentally sensitive areas and (ii) that procedures for designation of such corridors improperly support development of new coal-fired … Continue Reading

FERC Proposes to Revise Definition of “Bulk Electric System” for Determining Who Must Comply with Federal Reliability Standards

Posted in Federal, FERC, NERC
The Federal Energy Regulatory Commission (FERC) has issued a Notice of Proposed Rulemaking (NOPR) to revise the definition of “Bulk Electric System” (BES). This definition is important because it determines which transmission system elements are subject to mandatory electric reliability standards designed to ensure the uninterrupted operation of the electric grid. Owning or operating a facility … Continue Reading

Finding the Balance: FERC Carves Out Its Role on EPA’s Mercury and Air Toxics Standards

Posted in Environmental Quality, EPA, Federal, FERC
The following post by Margaret Claybour is in response to an advisory by Brian Gish of our DC office titled, ”FERC Seeks Comments on How to Advise EPA Regarding the Reliability Impact of Clean Air Act Rules”. Last month, FERC gave us a glimpse into its ongoing efforts to monitor the impact of the Environmental Protection Agency’s Mercury and Air Toxics Standards … Continue Reading

FERC Denies Preference for Reservation of Transmission Capacity on Merchant Transmission Line for Renewable Energy Resources

Posted in Federal, Renewables
From my DC colleague Jim Mitchell Rock Island Clean Line LLC is proposing to build a 500-mile, 600 kV HVDC merchant transmission line and associated facilities capable of delivering up to 3,500 MW of capacity and associated energy from generation projects in eastern South Dakota, eastern Nebraska, western Iowa and western Minnesota to customers in … Continue Reading

FERC Denies Preference for Reservation of Transmission Capacity on Merchant Transmission Line for Renewable Energy Resources

Posted in Federal, FERC, Renewables
Rock Island Clean Line LLC is proposing to build a 500-mile, 600 kV HVDC merchant transmission line and associated facilities capable of delivering up to 3,500 MW of capacity and associated energy from generation projects in eastern South Dakota, eastern Nebraska, western Iowa and western Minnesota to customers in Illinois and other states.  In a … Continue Reading

FERC Reaffirms Controversial Regional Transmission Planning Requirement for Transmission Providers

Posted in Federal, FERC
From Brian Gish of our DC Office: On May 17, 2012, the Federal Energy Regulatory Commission issued Order No. 1000-A that denies rehearing of its Order No. 1000, thus leaving in place the requirement that all FERC-jurisdictional electric transmission providers must participate in regional and inter-regional processes to plan for new transmission facilities.  Such transmission … Continue Reading

FERC Reaffirms Controversial Regional Transmission Planning Requirement for Transmission Providers

Posted in Federal, Uncategorized
From Brian Gish of our DC Office: On May 17, 2012, the Federal Energy Regulatory Commission issued Order No. 1000-A that denies rehearing of its Order No. 1000, thus leaving in place the requirement that all FERC-jurisdictional electric transmission providers must participate in regional and inter-regional processes to plan for new transmission facilities.  Such transmission … Continue Reading

FERC Asks: When Does a Generation Developer Become a Transmission Provider?

Posted in Federal, FERC, NERC
Margaret Claybour of our DC Office provides the following report. Generation developers on the West Coast should take special note as the FERC orders described in this blog all involve facilities out West. When an unwary generation developer builds a tie-line to the nearest transmission line, it might assume that the use of that line can … Continue Reading

FERC Asserts Jurisdiction Over Certain Sales of Renewable Energy Credits

Posted in Federal, FERC, Renewables
Jim Mitchell of our DC Office provides the following report: The Federal Energy Regulatory Commission ruled last week that the sale of renewable energy credits (“RECs”) as part of a bundled transaction that also includes the sale of electricity is subject to its regulatory jurisdiction under Part II of the Federal Power Act.  However, the … Continue Reading