Washington Energy Report > Troutman Sanders LLP

Bay Assumes FERC Chairmanship; Parkinson to Head Enforcement

On Wednesday, April 15, 2015, Commissioner Norman Bay formally assumed the chairmanship of the Federal Energy Regulatory Commission (“FERC” or the “Commission”), succeeding Chairman Cheryl LaFleur, who will remain on the Commission. [Read more →]

April 17, 2015   Comments Off

FERC Issues New Policy Statement on Recovery of Pipeline Modernization Costs

On April 16, 2015, FERC approved a new policy statement that will allow interstate natural gas pipelines to recover certain capital costs used to modernize or replace the pipeline’s existing facilities through the use of a surcharge mechanism.  FERC explained that the new policy statement was created in anticipation of new, future requirements from the Pipeline and Hazardous Materials Safety Administration that will likely require interstate pipelines to upgrade their pipeline systems for improved safety and reliability. [Read more →]

April 17, 2015   Comments Off

PG&E Fined a Record $1.6 Billion by California PUC for Role in San Bruno Pipeline Explosion

On April 9, 2015, the California Public Utilities Commission (“CPUC”) voted unanimously to assess Pacific Gas & Electric Company (“PG&E”) a $1.6 billion penalty for its role in the San Bruno pipeline explosion.  The explosion, which occurred on September 9, 2010, resulted in the deaths of eight people and injuries to 58 people, as well as the destruction and/or damage to many homes and city infrastructure.  The transmission pipeline was owned and operated by PG&E. [Read more →]

April 14, 2015   Comments Off

Second Circuit Upholds FERC’s NYISO Capacity Zone Order

On April 2, 2015, the United States Court of Appeals for the Second Circuit (“Second Circuit”) upheld the Commission’s approval of a new capacity zone and demand curve for the New York Independent System Operator, Inc. (“NYISO”).  Previously, on June 4, 2014, the Second Circuit denied an emergency motion requesting a stay of the implementation of the new zone (see June 9, 2014 edition of the WER). [Read more →]

April 14, 2015   Comments Off

PJM Requests Delay in Upcoming Capacity Auction

On April 7, 2015, PJM Interconnection, L.L.C. (“PJM”) requested a one-time waiver of its tariff so that PJM may delay its upcoming Base Residual Auction (“BRA”) until after FERC has ruled on its December 2014 capacity performance tariff revision filing.  PJM requested to delay the BRA from the week of May 11-15, 2015 to a week that is 30 to 75 days after FERC’s ruling on the merits of its capacity performance proposal, but no later than the week of August 10-14, 2015.  PJM stated that the delay until after FERC acts on its capacity performance filing would allow for market participant certainty on the status, schedule, and rules for the BRA. [Read more →]

April 14, 2015   Comments Off

FERC Rejects PJM’s Proposal to Preserve Demand Response Should SCOTUS Uphold Vacating of Order No. 745

On March 31, 2015, the Commission denied a proposal from PJM Interconnection, LLC (“PJM”) to modify the manner in which demand response resources participate in capacity auctions within the RTO.  PJM’s proposal was intended as a means of maintaining the participation of demand response resources in PJM’s capacity market in the event that the U.S. Supreme Court upholds the D.C. Circuit’s May 2014 ruling vacating Order No. 745 (see May 27, 2014 edition of the WER). [Read more →]

April 6, 2015   Comments Off

FERC Approves Dynegy’s $6.25 Billion Acquisition of Merchant Generation from Duke and Energy Capital Partner

On March 27, 2015, FERC issued two separate orders approving Dynegy Inc. and Dynegy Resource I, LLC’s (collectively, “Dynegy”) $6.25 billion acquisition of merchant generators from Duke Energy Corporation (“Duke”) and Energy Capital Partners LLC (“ECP”).  Upon consummation of the acquisitions, Dynegy will own 100 percent equity interest in several ECP subsidiaries, a 49.5 percent equity interest in Elwood Energy (an ECP subsidiary), and 100 percent equity interest in Duke Energy Commercial Asset Management, LLC and Duke Energy Retail Sales, LLC. [Read more →]

April 3, 2015   Comments Off

FERC Revises Date for Available Transfer Capability Calculations Workshop

FERC has updated the date that it will convene a workshop to discuss standards for calculating Available Transfer Capability (“ATC”) for wholesale electric transmission services.  The workshop will now be held in the FERC Meeting Room on April 21, 2015. [Read more →]

April 3, 2015   Comments Off

President Signs Executive Order Mandating GHG Reductions for the Federal Government

On March 19, 2015, the White House issued an executive order directing federal agencies to reduce their direct greenhouse gas (“GHG”) emissions by at least 40 percent from 2008 levels by 2025 (“Executive Order”).  The Executive Order also directs federal agencies to increase the use of renewable energy by its buildings by at least 30 percent by 2025.  According to the Executive Order, agencies must begin complying with the various reductions and mandates in fiscal year 2016. [Read more →]

March 27, 2015   Comments Off

FERC Denies Wisconsin Power and Light’s Request for Waiver of MISO Tariff Provisions

On March 24, 2015, the Commission denied Wisconsin Power and Light Company’s (“WPL”) request for waiver of certain provisions of the Midcontinent Independent System Operator’s (“MISO”) Open Access Transmission, Energy and Operating Reserve Markets Tariff (the “MISO Tariff”) dealing with annual capacity obligations.  Despite denying WPL’s request, the Commission noted that it was concurrently issuing a separate order to modify the MISO Tariff which would, according to the Commission, provide WPL with the relief it sought. [Read more →]

March 27, 2015   Comments Off