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.
On January 26, 2017, President Trump appointed Commissioner Cheryl LaFleur Acting Chairman of FERC. Acting Chairman LaFleur has been a member of the Commission since 2010, and previously served as Acting Chairman from November 2013 to July 2014, and as Chairman from July 2014 until April 2015. Continue Reading Commissioner LaFleur Appointed Acting Chairman of FERC; Commissioner Bay Resigns, Preventing Quorum Needed for FERC Action
On January 19, 2017, FERC issued a Policy Statement providing guidance on the ability of electric storage resources to receive cost-based rate recovery for certain services, while also receiving market-based revenues for providing separate market-based rate services in Regional Transmission Organizations (“RTOs”) and Independent System Operators (“ISOs”). Continue Reading FERC Issues Policy Statement on Electric Storage Cost Recovery
On January 6, 2017, FERC accepted PJM Interconnection, L.L.C.’s (“PJM”) proposal to change its pricing methodology for the release of excess capacity in its upcoming Third Incremental Auction for the 2017/18 Delivery Year. FERC concluded that PJM will be permitted to use the revised pricing rules to release excess capacity exclusively for PJM’s Third Incremental Auction for the 2017/18 Delivery Year.
As part of the ongoing legal fallout from the 2000-2001 California energy crisis, on January 9, 2017, FERC issued an order clarifying that, for purposes of that proceeding, “pricing umbrella” evidence is relevant only for contextual purposes and cannot serve as a basis for finding refund liability. In this order, FERC clarified that “pricing umbrella” evidence may be introduced solely for the purposes of providing context for FERC’s consideration, and that such evidence should not constitute the basis for finding refund liability. Continue Reading FERC Clarifies the Relevance of “Pricing Umbrella” Evidence in the California Energy Crisis Proceeding
On December 30, 2016, FERC accepted the California Independent System Operator Corporation’s (“CAISO”) proposed revisions to the definition of “Load Serving Entity” under its tariff. In particular, CAISO’s proposed tariff revisions seek to add a new class of end user Load Serving Entities that: (1) are the ultimate consumers of electricity; (2) have legal authority to serve load through the purchase of energy from an entity that is not a Load Serving Entity; and (3) have exercised their right to purchase electricity from a party that is not serving as the Load Serving Entity for the transaction. Continue Reading FERC Approves Revised Definition of “Load Serving Entity” in CAISO
On January 4, 2017, FERC issued an order conditionally accepting certain Open Access Transmission Tariff (“Tariff”) revisions submitted by the Southwest Power Pool, Inc. (“SPP”) in November 2016. The proposed Tariff revisions amend Attachment AE of the SPP Tariff, including the sections governing the Auction Revenue Right (“ARR”) Allocation and Transmission Congestion Right (“TCR”) Offer and Bid submittal processes in SPP’s Integrated Marketplace. Continue Reading FERC Conditionally Accepts Modifications to SPP Integrated Marketplace
On December 15, 2016, FERC issued a notice of proposed rulemaking (“NOPR”) that proposed to establish a set of fast-start pricing requirements applicable to regional transmission organizations (“RTO”) and independent system operators (“ISO”). FERC indicated it was issuing the NOPR to address concerns that rates for fast-start resources in RTO and ISO day-ahead and real-time markets do not reflect the value of fast-start resources. Continue Reading FERC Proposes Fast-Start Resource Pricing Rules for RTOs and ISOs
On December 6, 2016, FERC issued an order partially denying and partially granting a complaint brought by a coalition of transmission customers (“Coalition”) of the Midcontinent Independent System Operator, Inc. (“MISO”). The Coalition argued that MISO misapplied portions of its open access transmission tariff (“OATT” or “Tariff”) regarding the 2016/2017 planning year resource auction. Although the Commission rejected the Coalition’s argument that MISO utilized an unjust and unreasonable methodology for calculating Sub-Regional Export and Import constraints for the 2016/2017 auction, FERC found that prospective application of those methodologies was no longer just and reasonable, and directed MISO to modify its Tariff accordingly. Continue Reading FERC Partially Denies and Grants Customer Complaint Regarding MISO Planning Auction and Sub-Regional Export and Import Constraints
On November 30, 2016, FERC issued an order accepting tariff revisions filed by Public Service Company of Colorado (“PSCo”) regarding penalty charges for energy imbalance and generator imbalance services under Schedules 4 and 9 of PSCo’s open access transmission tariff (“OATT”). FERC found the revisions, which PSCo filed to address the influx of variable wind generation on its system, to provide incentives for accurate scheduling from transmission customers. Continue Reading FERC Approves PSCo Tariff Revisions Regarding Energy and Generator Imbalance Penalty Charges