On May 12, 2017, PJM Interconnection, L.L.C. (“PJM”) submitted to FERC revisions to the PJM Open Access Transmission Tariff (“OATT”), Attachment K-Appendix and the PJM Amended and Restated Operating Agreement, Schedule 1 to implement changes to the Operating Reserve demand curves (“ORDC”) that are embedded in PJM’s real-time market clearing engines.  According to PJM, the proposed changes to the ORDC are necessary to set clearing prices relative to the degree of severity of a reserve shortage. Continue Reading PJM Proposes Changes to Operating Reserve Demand Curves to Reduce Reserve Shortage Pricing

On May 8, 2017, the nation’s Regional Transmission Organizations and Independent System Operators (“RTOs/ISOs”) submitted their respective compliance filings to implement the directives from FERC Order No. 831, which revised FERC’s regulations regarding incremental energy offer caps imposed by RTOs/ISOs. Continue Reading RTOs/ISOs Submit Order No. 831 Compliance Filings

On May 1, 2017, FERC filed a brief in the United States Court of Appeals for the District of Columbia Circuit (“D.C. Circuit”) arguing for the dismissal of United Airlines Inc. and UPS Fuel Services Inc’s (together, “Shippers”) petition for review of a 2013 FERC order in which FERC allowed Enterprise TE Products Pipeline Company LLC (“Pipeline”) to discontinue its jet fuel and diesel fuel transportation service to various shipping entities, including Shippers.  Shippers’ petition for review alleged that Pipeline’s termination of this service violated a 2013 settlement agreement (“Settlement Agreement”) requiring Pipeline to provide this service through May 31, 2015.  FERC’s brief argued that the petition should be dismissed for lack of justiciability, or in the alternative, for lack of standing.

Continue Reading FERC Seeks Dismissal of Jet Fuel and Diesel Fuel Shippers’ Petition for Review in D.C. Circuit Court of Appeals

On April 21, 2017, the California Independent System Operator Corporation (“CAISO”) requested that FERC find CAISO’s current tariff just and reasonable, and that CAISO no longer needed to implement several outstanding directives that were issued in a 2006 order conditionally approving CAISO’s Market Redesign and Technology Upgrade (“MRTU”) tariff amendments, which were designed to, among other things, implement a nodal market in the CAISO footprint. Continue Reading CAISO Requests Removal of Remaining MRTU Directives

On April 25, 2017, the U.S. Court of Appeals for the D.C. Circuit (“D.C. Circuit”) dismissed Portland General Electric Company’s (“PGE”) and PáTu Wind Farm LLC’s (“PáTu”) petitions for review of FERC’s orders finding that PGE must purchase all of the power delivered by PáTu pursuant to their power purchase agreement (“PPA”) under the Public Utility Regulatory Policies Act (“PURPA”), but that PGE was not required to use dynamic scheduling.  In doing so, the D.C. Circuit held, among other things, that: (1) it lacked jurisdiction to review FERC’s resolution of PGE and PáTu’s PURPA dispute because the orders were merely declaratory; (2) circuit court review of PURPA section 210(h) enforcement actions occurs on appeal from district courts; and (3) FERC’s Federal Power Act (“FPA”)-based regulations cited to by PáTu in support of its claim that FERC should require PGE to use dynamic scheduling only apply to the transmission customer-transmission provider relationship, which was unlike PáTu and PGE’s relationship. Continue Reading D.C. Circuit Dismisses PGE Petition for Review over PURPA Purchase Obligation, Denies PáTu Petition on the Merits

On April 14, 2017, Renewable Energy Systems Americas (“RES) and Invenergy Storage Development LLC (“Invenergy”) (collectively, the “Complainants”) filed a complaint with FERC against PJM Interconnection, L.L.C. (“PJM”), alleging that changes PJM made to a dispatch signal used in its Regulation market were unjust, unreasonable, and unduly discriminatory, and therefore in violation of the Federal Power Act (“FPA”) and FERC precedent. Continue Reading RES and Invenergy Allege PJM’s Change to Regulation Market Dispatch Signal Harms Storage Resources

According to various reports, President Donald Trump plans to appoint Kevin McIntyre as FERC Chairman, and Neil Chatterjee and Rob Powelson as FERC Commissioners, to fill the three vacant Commissioner seats at FERC. All three potential appointees are Republicans, whereas the current Commissioners—Acting Chairman Cheryl LaFleur and Commissioner Collette Honorable—are Democrats. Continue Reading Reports Suggest President Trump Plans to Appoint McIntyre as FERC Chairman, Chatterjee and Powelson as FERC Commissioners

On March 6, 2017 the Wyoming Pipeline Authority (“WPA”) requested rehearing of FERC’s February 3, 2017 Delegation Order (“Delegation Order”).  In the filing, the WPA asserted that the Delegation Order exceeds FERC’s statutory authority because it purports to authorize agency staff members to take action that would not be possible for FERC itself to take due to the current lack of quorum.  This deficiency, WPA argued, can only be cured through the appointment of new Commissioners. Continue Reading Wyoming Pipeline Authority Challenges Legality of FERC Delegation Order

Since Commissioner Norman Bay’s departure from FERC on February 3, 2017 created the absence of the requisite three-Commissioner quorum necessary for the Commission to vote (see January 31, 2017 edition of the WER), FERC Staff has continued to act on certain pending matters under the authority delegated to it by the Commission on February 3, 2017 (see February 3, 2017 Troutman Sanders Alert). Continue Reading FERC Staff Acting Under Delegated Authority in the Absence of Three-Commissioner Quorum