On October 6, 2017, FERC accepted a tariff filing from ISO New England Inc. (“ISO-NE”) proposing updated calculations for various Forward Capacity Market input values, including Cost of New Entry (“CONE”), Net CONE, and Offer Review Trigger Price (“ORTP”).  As part of its order, FERC also approved ISO-NE’s choice of a simple cycle gas turbine as the reference technology for establishing CONE and Net CONE values—thereby replacing the combined cycle natural gas turbine that had been used as a reference technology by ISO-NE since 2014. Continue Reading FERC Accepts ISO-NE’s Updated CONE and Other Forward Capacity Market Values

On October 2, 2017, FERC issued notice of the September 29, 2017 Notice of Proposed Rulemaking (“NOPR”) from the United States Department of Energy (“DOE”) under section 403 of the Department of Energy Organization Act.  In the NOPR, DOE urges FERC to act quickly to enact rules requiring regional transmission organizations and independent system operators (“RTOs/ISOs”) to provide just and reasonable rates for “fuel-secure” generation units (see October 2, 2017 edition of the WER).  Shortly thereafter, on October 4, FERC staff issued a Request for Information, listing various questions for commenters to address in aiding the Commission to better understand the NOPR’s implications.  Commenting parties have until October 23, 2017 to file initial comments and until November 7, 2017 to file reply comments.  In recent testimony before the Senate’s Committee on Energy and Natural Resources, FERC General Counsel, James Danly, confirmed that FERC intends to review the comments and take final action within 60 days of the NOPR’s publication, as requested by the DOE. Continue Reading FERC Sets Comment Deadline and Poses Questions for Commenters on DOE Proposed Rule

On September 27, 2017, FERC issued an order granting a request from the New York Independent System Operator, Inc. (“NYISO”) to waive certain sections of its Market Administration and Control Area Services Tariff (“Tariff”) as they pertain to particular transmission shortage cost provisions.  NYISO submitted the waiver request in January 2017 to allow time to correct certain discrepancies with its Tariff and software used to resolve transmission constraints.  Continue Reading FERC Grants NYISO Waiver Request on Transmission Shortage Cost Provisions While NYISO Resolves Inconsistencies

On September 20, 2017, FERC issued two final rules and a notice of proposed rulemaking (“NOPR”) on reliability standards for the bulk power system. The final rules—Order Nos. 836 and 837—will become effective sixty days after their publication in the Federal Register.  Parties interested in filing comments on matters discussed in the NOPR must do so within sixty days of when that notice is published in the Federal Register. Continue Reading FERC Issues Final Rules and NOPR to Enhance Bulk Electric System Resilience, Reliability

On September 8, 2017, FERC rejected an unexecuted amendment to an interconnection service agreement (“Agreement”), which PJM Interconnection, LLC (“PJM”) filed on behalf of Hudson Transmission Partners, LLC (“HTP”). The amended Agreement sought to allow HTP to convert 320 MW of Firm Transmission Withdrawal Rights to Non-Firm Transmission Withdrawal Rights—a conversion opposed by another party to the Agreement, Public Service Electric and Gas Company (“PSEG”), due to its alleged potential impact on PJM’s pending Regional Transmission Expansion Plan (“RTEP”) cost allocation proceedings.  Along with its rejection of the amended Agreement, FERC initiated a Federal Power Act (“FPA”) section 206 proceeding into whether the Agreement, and PSEG’s withholding of consent for the conversion, unjustly and unreasonably restrict HTP’s ability to convert its Firm Transmission Withdrawal Rights. Continue Reading FERC Commences Look into Proposed Conversion of PJM Transmission Withdrawal Rights

On September 7, 2017, the Senate Committee on Energy and Natural Resources (“Committee”) held a hearing to consider the nominations of Kevin McIntyre and Richard Glick—President Trump’s final nominees for FERC Commissioner.  Mr. McIntyre and Mr. Glick, who were joined by two nominees also being considered for Department of Interior positions, fielded questions from Committee members but largely avoided opining on matters currently pending at FERC.  Knowing that FERC only just recently reestablished the required quorum to resume regular business (see August 11, 2017 edition of the WER), Committee Chairman Sen. Lisa Murkowski (R-AK) stated that she was eager to advance the FERC nominees to the full Senate for confirmation. Continue Reading Senate Committee on Energy and Natural Resources Holds Hearing to Consider FERC Nominees

On August 10, 2017, Robert Powelson was officially sworn-in as a FERC Commissioner, restoring the three-Commissioner quorum necessary for FERC to resume regular business and vote on matters before it.  Commissioner Powelson joins Commissioner Neil Chatterjee, who was sworn in on August 8, 2017, and Commissioner Cheryl LaFleur.  On the same day as Commissioner Powelson’s swearing-in, President Trump named Commissioner Chatterjee to be Chairman until one of the remaining FERC Commissioner nominees, Kevin McIntyre, is confirmed by the Senate and sworn in. Continue Reading FERC Quorum Restored Following the Swearing-in of Commissioner Powelson; Commissioner Chatterjee Named Interim Chairman

On the evening of August 3, 2017, the U.S. Senate voted unanimously to confirm Neil Chatterjee and Robert Powelson, two of President Donald Trump’s nominees to join Acting Chairman Cheryl LaFleur as FERC Commissioners.  Once Chatterjee and Powelson are officially sworn in at the Commission, the quorum that has been lacking since former Chairman Norman Bay resigned earlier this year will be restored, enabling the Commission to vote on matters before it.  On September 7, 2017, the Senate Committee on Energy and Natural Resources also is scheduled to consider the nominations of Richard Glick and Kevin McIntyre—the final two nominees for the five-member Commission whose names the White House sent to the Senate in August. Continue Reading FERC Quorum Soon to Be Restored as Senate Confirms Neil Chatterjee and Robert Powelson to Serve as Commissioners

On July 25, 2017, two weeks after an Illinois federal judge issued a similar ruling, the U.S. District Court of the Southern District of New York (“District Court”) issued an order dismissing challenges to a New York state “zero emission credit” (“ZEC”) program established by the New York Public Service Commission (“NYPSC”).  As with the Illinois court’s decision regarding the Illinois ZEC program (see July 25, 2017 edition of the WER), the District Court found the New York ZEC program constitutional and determined that the challengers lacked a private right of action to challenge the New York ZEC program on preemption and dormant commerce clause grounds.  Nevertheless, the District Court reached, and rejected, the merits of those challenges. On August 24, 2017 the case was appealed to the U.S. Court of Appeals for the Second Circuit.  Continue Reading Federal District Court Dismisses Challenges to New York ZEC Program

On July 14, 2017, the United States District Court for the Northern District of Illinois, Eastern Division (“District Court”), issued a memorandum opinion and order dismissing various challenges to an Illinois “zero emission credit” (“ZEC”) program passed into law at the end of 2016 (“ZEC Program”).  After finding that the plaintiffs largely lacked standing to bring their claims, the District Court nonetheless reached the merits of, and rejected, the plaintiffs’ preemption, equal protection, and dormant commerce clause challenges to the ZEC Program.  Three days after its release, the ruling was appealed to the U.S. Court of Appeals for the Seventh Circuit (“Seventh Circuit”). Continue Reading Federal District Court’s Standing Analysis and Dismissal of Illinois ZEC Challenges Heads to Court of Appeals