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Category Archives: FERC

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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

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, 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

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