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Category Archives: FERC

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FERC Raises the Bar for Public Participation in Gas Pipeline Certificate Proceedings

Posted in FERC
The Federal Energy Regulatory Commission (FERC) has a long-standing reputation for non-partisan decision-making. This was reinforced by its January 2018 rejection of the Department of Energy’s demand that electric pricing rules be changed to incentivize coal-fired and nuclear electric generation.  More recent FERC actions, however, suggest that this independent regulatory agency is trending towards greater… Continue Reading

FERC Should Reconsider Its Bias in Favor of Incremental Pricing of Pipeline Expansions

Posted in FERC
At his first Federal Energy Regulatory Commission (FERC) meeting this past December, Chairman Kevin McIntyre announced the agency will be soliciting comments on whether to revise its 1999 Certificate Policy Statement (CPS), which FERC uses to evaluate applications to build new pipelines or expand existing ones. Under the CPS, the pipeline must show that the… Continue Reading

FERC Allows Electric Storage Participation in Wholesale Markets; Sets Technical Conference for Distributed Energy Resource Aggregation

Posted in FERC
Electric Storage On February 15, 2018, the Federal Energy Regulatory Commission (“FERC” or “Commission”) issued a final rule (Order No. 841, the “Order”) requiring each independent system operator (“ISO”) and regional transmission organization (“RTO”) to adjust their tariffs to better accommodate energy storage resources. Eligible storage facilities include any “resource capable of receiving electric energy… Continue Reading

Industry Petition Pushes FERC to Require Gas Pipelines and Storage Companies to Immediately Reflect Lower Tax Rates in Shipper Rates

Posted in FERC
In light of reduced corporate tax rates as the result of Tax Cuts and Jobs Act of 2017 (Tax Act), a broad coalition of gas industry trade associations and gas producers recently filed a petition with the Federal Energy Regulatory Commission (FERC) urging the agency to lower gas pipeline and storage company rates to reflect tax rate… Continue Reading

FERC Rejects FirstEnergy’s Application To Transfer Generating Facility to an Affiliated Utility

Posted in FERC
In an order issued on January 12, 2018, the Federal Energy Regulatory Commission (“FERC” or “Commission”) rejected an application by Monongahela Power Company (“Mon Power”), a franchised public utility subsidiary of FirstEnergy Corp. (“FE”) engaged in providing electric service in West Virginia, to acquire needed generation capacity from an affiliate. Mon Power had concluded through… Continue Reading

New Tax Law Exerts Downward Pressure on Incremental Project Recourse Rates

Posted in FERC
Pipeline expansion capacity is priced at the incremental cost of service of the new facilities to be constructed. This causes the incremental recourse rate to generally be higher than the otherwise applicable system recourse rate. That is no longer necessarily the case. In an order issued to Transcontinental Gas Pipe Line Company January 18, 2018, FERC… Continue Reading

2018 Tax Law to Reduce Pipeline Expansion Recourse Rates

Posted in FERC
FERC staff has asked gas pipelines with pending expansion applications how 2018 tax law changes will impact their proposed project’s cost of service and the project’s proposed incremental rates.  FERC has imposed a quick, three business day turnaround on responses. In identical data requests sent to a number of pipelines within the last week, FERC… Continue Reading

Trump Track: FERC Rejects DOE Coal/Nuclear Rule Proposal But Initiates A New One

Posted in FERC, Trump Track
On January 8, 2018, the Federal Energy Regulatory Commission (“FERC” or “Commission”) issued an order declining to conduct a rulemaking proposed by Department of Energy Secretary Rick Perry to that would create rate incentives for the coal and nuclear industries (“Proposed Rule”). The Proposed Rule would have required FERC-jurisdictional Independent System Operators (“ISOs”) and Regional… Continue Reading

Trump Track: DOE Proposes FERC Action to Benefit Coal and Nuclear Power

Posted in FERC, Trump Track
On September 28, 2017, the Department of Energy (“DOE”) issued a Notice of Proposed Rulemaking (“NOPR”) to the Federal Energy Regulatory Commission (“FERC”) pursuant to §403(a) of the DOE Organization Act.  Regulations proposed in the NOPR would require FERC-jurisdictional Independent System Operators (“ISOs”) and Regional Transmission Organizations (“RTOs”) to develop rules for compensation of certain… Continue Reading

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

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