Energy & Environmental Law Blog

Energy & Environmental Law Blog

Analyzing the critical energy and environmental issues of the day

Tag Archives: FERC

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

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

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 to Streamline Its Decisions on Rehearing

Posted in Federal, Rulemakings
At its monthly public meeting earlier today, FERC announced the formation of a new Rehearings Group, under the direction of Office of the General Counsel attorney Robert Kennedy.  This group will focus exclusively on drafting rehearing orders and will be taking a much more streamlined approach in doing so, eliminating from such orders the recitation… 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

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