On May 8, 2013, FERC denied Linden VFT, LLC’s (“Linden”) complaint against two power marketers, Brookfield Energy Marketing, L.P. (“Brookfield”) and Cargill Power Markets, LLC (“Cargill”), for failure to pay pass-through charges related to PJM Interconnection, LLC (“PJM”) transmission upgrades.  In denying the complaint, FERC determined that Linden lacked the contractual authority to charge for the additional costs. [Read more →]

On May 9, 2013, FERC issued a notice that it will hold a special Commission meeting on May 16, 2013 to hear presentations from representatives of Regional Transmission Organizations (“RTOs”) and Independent System Operators (“ISOs”) on natural gas and electric coordination.  The meeting follows a November 15, 2012 order requiring RTOs and ISOs to brief FERC on their experiences during the winter and spring seasons, share any advances made in increased coordination between the two industries, and voice any concerns that have emerged. [Read more →]

On May 7, 2013, FERC announced that it will hold a Commissioner-led Technical Conference on reliability on Tuesday, July 9, 2013 from 9:00 AM to 5:00 PM.  While the conference will discuss policy issues related to reliability of the Bulk-Power System, the Commission will issue a more formal agenda for the conference at a later date. [Read more →]

On April 29, 2013, FERC accepted PJM Interconnection, L.L.C.’s (“PJM”) proposed Open Access Transmission Tariff revisions aimed at incentivizing the participation of an efficient mix of demand resource (“DR”) products in the PJM capacity auction.  PJM’s tariff revisions set up an additional test to establish the Limited DR Reliability Target for certain types of DR capacity products. [Read more →]

On April 29, 2013, three U.S. Senators sent a letter to FERC and the Commodity Futures Trading Commission (“CFTC”) urging greater cooperation between the two agencies.  Senators Dianne Feinstein (D-CA), Lisa Murkowski (R-AK), and Ron Wyden (D-OR) penned the open-letter requesting that FERC and the CFTC “execute more robust Memorandums of Understandings” (“MOUs”) to prevent market manipulation. [Read more →]

On April 23, 2013, FERC approved a Stipulation and Consent Agreement (“Settlement”) with Seneca Falls Power Corporation (“Seneca Falls”) for violations of its hydropower license.  In the Settlement, Seneca Falls agreed to pay a $150,000 civil penalty and invest $300,000 in project enhancements. [Read more →]

On April 18, 2013, the New York State Public Service Commission (“NYPSC”) approved construction of the 1,000 MW Champlain-Hudson direct current transmission line.  When built, the Champlain-Hudson line is anticipated to deliver primarily hydroelectric power from Canada to New York City. [Read more →]

On April 19, 2013, FERC granted a complaint by Comverge, Inc., Viridity Energy, and Energy Curtailment Specialists (the “Demand Response Coalition”) alleging that PJM Interconnection L.L.C.’s (“PJM”) revisions to its Manual 18, PJM Capacity Market are unenforceable and violate section 205 of the Federal Power Act (“FPA”). [Read more →]

On April 23, 2013, FERC’s Director of Office of Energy Projects, Jeff C. Wright, testified before the Senate Committee on Energy and Natural Resources concerning draft legislation aimed at increasing hydropower production in the United States.  The draft legislation at issue included S. 545, “Hydropower Improvement Act of 2013” and H.R. 267, “Hydropower Regulatory Efficiency Act of 2013.”  In his testimony, Wright discussed FERC’s authority under the Federal Power Act (“FPA”) to issue licenses or exemptions for hydropower projects under its jurisdiction.  Wright further detailed FERC’s recent efforts to support small and “innovative” projects, including marine and hydrokinetic projects, and pumped storage projects. [Read more →]

On April 15, the Internal Revenue Service (the “IRS”) released notice 2013-29 (the “Notice”) which provides guidance on what constitutes “beginning of construction” for purposes of the American Taxpayer Relief Act of 2012 (“ATRA”).  A copy of the Notice can be found here.  Under ATRA, a qualified facility (as described in section 45(d) of the Internal Revenue Code) will be eligible to receive the renewable electricity production tax credit (“PTC”) under section 45 of the Code, or the energy investment tax credit (“ITC”) under section 48 of the Code in lieu of the PTC, if construction of such facility begins before January 1, 2014. [Read more →]