On April 4, 2017, the United States Court of Appeals for the District of Columbia Circuit (“DC Circuit”) held that FERC had erred in finding that the terms of an interconnection agreement between NextEra Desert Center Blythe, LLC (“NextEra”), Southern California Edison Company (“SCE”), and the California Independent System Operator (“CAISO”) clearly and unambiguously bars NextEra from receiving Congestion Revenue Rights (“CRR”).  The DC Circuit remanded the case to FERC for consideration in light of the identified ambiguity.

Continue Reading D.C. Circuit Rules Against FERC in NextEra Contract Interpretation Dispute

On March 24, 2017, the United States Department of State (“State Department”) issued a presidential permit to TransCanada Keystone Pipeline, L.P. (“TransCanada”) authorizing TransCanada to import crude oil from Canada to the United States as part of TransCanada’s Keystone XL pipeline project. The presidential permit was issued under the authority of Executive Order 13337 and the January 24, 2017 Presidential Memorandum Regarding Construction of the Keystone XL Pipeline (see January 30, 2017 edition of the WER).

After TransCanada first submitted its presidential permit application for the Keystone XL pipeline on January 31, 2014, it resubmitted its application on January 26, 2017 after Executive Order 13337 was issued. TransCanada’s President and Chief Executive Officer, Russ Girling, issued a statement calling the issuance of the presidential permit a “significant milestone for the Keystone XL project.”

The presidential permit is available here.

On March 24, 2017, the United States Department of State (“State Department”) issued a presidential permit to TransCanada Keystone Pipeline, L.P. (“TransCanada”) authorizing TransCanada to import crude oil from Canada to the United States as part of TransCanada’s Keystone XL pipeline project. The presidential permit was issued under the authority of Executive Order 13337 and the January 24, 2017 Presidential Memorandum Regarding Construction of the Keystone XL pipeline (see January 30, 2017 edition of the WER). Continue Reading State Department Issues Presidential Permit for Keystone XL Pipeline

On March 9, 2017, FERC issued notice that FERC staff will convene a technical conference on June 26, 27, and 28, 2017 to explore opportunities for increasing market and planning efficiency through improved software. FERC staff will facilitate a discussion regarding advances in market modeling that have the potential to improve efficiency. FERC will accept comments following the conference, with a deadline of July 31, 2017. Continue Reading FERC to Convene Technical Conference on Increasing Real-Time and Day-Ahead Market Efficiency through Improved Software

On March 3, 2017, Southwest Power Pool, Inc. (“SPP”) filed revisions to its Open Access Transmission Tariff (“Tariff”) to implement a Resource Adequacy Requirement (“RAR”) applicable to all entities responsible for serving load (“LREs”) within the SPP Balancing Authority Area (“BAA”). SPP seeks to implement the RAR for the forthcoming summer period from June 1, 2017 through September 30, 2017, while delaying the assessment of penalties for non-compliance until the 2018 RAR cycle.

Continue Reading Southwest Power Pool Files Resource Adequacy Requirements

On February 24, 2017, the Balancing Authority of Northern California (“BANC”) – acting on behalf of its member, Sacramento Municipal Utility District – entered into an Implementation Agreement with the California Independent System Operator Corporation (“CAISO”) to participate in CAISO’s western Energy Imbalance Market (“EIM”). BANC had announced in October of 2016 that it would begin negotiations on behalf of its members to develop the Implementation Agreement. Going forward, participation in the EIM will require participating transmission service providers in the BANC balancing authority area to revise their open access transmission tariffs to reflect CAISO’s rules and procedures governing the EIM and to execute service agreements associated with the EIM.

Continue Reading BANC Enters California Energy Imbalance Market

ISO New England, Inc. (“ISO New England”) has published its 2017 Regional Electricity Outlook, an annual report intended to keep stakeholders informed about issues affecting the grid and the ISO’s actions to ensure a modern, reliable power system for New England. The report includes an address from each of ISO New England’s Board Chair and its Chief Executive Officer. Both addresses warn against the threat that inadequate supply of natural gas to fuel generators poses to the ISO New England transmission system’s reliability. Additionally, the report examines the challenge of balancing competitive markets with state environmental policies. The report also provides performance metrics and updates on ISO New England’s initiatives related to cyber security, stakeholder processes, and compliance with the standards and directives issued by the Federal Energy Regulatory Commission, the North American Electric Reliability Corporation, and the Northeast Power Coordinating Council.

ISO New England’s 2017 Regional Electricity Outlook can be found here.

On February 15, 2017, the PJM Interconnection, L.L.C. (“PJM”) Board authorized more than $1.5 billion in electric transmission projects in the PJM-region as part of the Regional Transmission Enhancement Plan process. According to PJM President and CEO Andy Ott, the current round of project approvals addresses “the growing need to replace aging infrastructure, energy efficiency, and the resulting reduction in the growth of demand for electricity.” Both the list of approved projects and the proposed cost allocation for each project will be the subject of future filings with FERC.

Continue Reading PJM Board Authorizes $1.5 Billion in Transmission Projects

On February 3, 2017, FERC accepted Southwest Power Pool, Inc’s. (“SPP”) proposal to modify its Open Access Transmission Tariff (“Tariff”) to permit combined cycle resources to register as Multi-Configuration Resources (“MCR”) in its Integrated Marketplace. FERC accepted the modifications subject to SPP submitting a compliance filing to provide further clarification and refinement to address certain areas of ambiguity in SPP’s proposed tariff language.

Continue Reading FERC Accepts SPP’s Tariff Modifications to Implement Multi-Configuration Resources in Integrated Marketplace

On February 2, 2017, FERC rejected the Midcontinent Independent System Operator, Inc’s. (“MISO”) proposed Competitive Retail Solution (“CRS Proposal”), which would have bifurcated the MISO capacity market into two distinct market clearing processes – the existing Planning Resource Auction (“PRA”) and a newly proposed, three-year forward capacity auction (“FCA”) for jurisdictions that had implemented retail choice initiatives. FERC found that the proposed bifurcated construct could potentially have adverse impacts on price formation in both the PRA and the FCA.

Continue Reading FERC Rejects MISO’s Proposal for Bifurcated Capacity Market Clearing Processes