On April 13, 2017 the Energy Storage Association (“ESA”) filed a complaint with FERC, alleging that PJM Interconnection, L.L.C. (“PJM”) had unilaterally implemented a series of changes to its Regulation market without FERC’s review and approval, in violation of the Federal Power Act (“FPA”). ESA contended that its members who participate in the Regulation market had “suffered significant and detrimental financial harm” as a result of PJM’s changes, and that ESA was filing its complaint “to compel PJM to give the Commission the opportunity to determine whether each of these changes are just and reasonable and not unduly discriminatory.” Continue Reading Energy Storage Association Alleges Changes to PJM Regulation Market Violate FPA
On March 31, 2017, a group of California parties, consisting of various public power utilities and the California Public Utilities Commission (the “Complainants”), alleged in their complaint at FERC that Pacific Gas and Electric Company’s (“PG&E”) proposed transmission rates in its eighteenth rate filing (“TO-18”) contained significant errors and overstated expenses. The Complainants requested that FERC investigate the proposed TO-18 rates, which FERC had already set for hearing and settlement judge procedures in a separate proceeding. In addition, the Complainants requested that FERC exercise its authority to supplement the refund effective date established for the proposed TO-18 rates, in the event that the record eventually justified establishing a revenue requirement below PG&E’s last “clean” rate, established through settlement in its seventeenth rate filing (“TO-17”). Continue Reading California Parties Request Refunds from PG&E Based on Alleged Errors in Proposed Transmission Revenue Requirement
On March 28, 2017, Dynegy Marketing and Trade, LLC and Illinois Power Marketing Company (collectively, the “Complainants”) filed a complaint against the Midcontinent Independent System Operator, Inc. (“MISO”) alleging that MISO has failed to comply with the terms of its Open Access Transmission, Energy and Operating Reserve Markets Tariff (“MISO Tariff”) with respect to resources “pseudo-tied” into PJM Interconnection, L.L.C. (“PJM”). According to the Complainants, MISO has been assessing congestion and losses charges to MISO resources pseudo-tied into PJM using “Financial Schedules” in a manner that “blatantly contravenes the MISO Tariff and that results in the unjust, unreasonable, and unduly discriminatory imposition of duplicative charges.” The Complainants request that the Commission order MISO to immediately cease and desist from imposing such charges and that MISO “refund duplicative congestion and losses charges unlawfully imposed.” Continue Reading Dynegy and IPM Allege MISO Failed to Comply with Own Tariff Regarding Resources Pseudo-Tied into PJM
On March 15, 2017, the Board of Governors of the California Independent System Operator Corporation (“CAISO”) approved the 2016-2017 Transmission Plan, which is an annual, comprehensive assessment of transmission needs of the CAISO system over a 10-year planning horizon. According to the accompanying memorandum from CAISO Management, the Transmission Plan “provides a comprehensive evaluation of the ISO’s transmission grid to identify upgrades needed to successfully meet California’s policy goals, in addition to examining conventional grid reliability requirements and transmission projects that can bring economic benefits to consumers.” Continue Reading CAISO Board Approves Annual Transmission Plan
On March 6, 2017, the Supreme Court of the United States denied a petition to review FERC’s requirement in Order No. 1000 that transmission providers remove from their tariffs and agreements provisions granting incumbent transmission owners a right of first refusal (“ROFR”) to construct transmission facilities selected in a regional transmission plan (see April 13, 2016 edition of the WER). The October 14, 2016 petition, filed by a group of Midcontinent Independent System Operator, Inc. (“MISO”) transmission owners, requested review of an April 8, 2016 decision by the United States Court of Appeals for the Seventh Circuit (“Seventh Circuit”) upholding FERC’s requirement.
The denial of the petition for writ of certiorari means that the Seventh Circuit’s April 8, 2016 ruling will stand. The case is docketed in Case No. 16-531.
On February 24, 2017, President Donald Trump issued a Presidential Executive Order on Enforcing the Regulatory Reform Agenda (“Executive Order”) which requires the heads of agencies to designate an agency official as the “Regulatory Reform Officer” within 60 days, and establish “Regulatory Reform Task Forces.” The objective of each Regulatory Reform Task Force will be to “evaluate existing regulations and make recommendations to the agency head regarding their repeal, replacement, or modification, consistent with applicable law.” Continue Reading President Trump Orders Agencies to Create “Regulatory Reform Task Forces”
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
On January 30, 2017, FERC granted in part a request for rehearing of its May 16, 2013 order, which accepted in part and rejected in part the New York Independent System Operator, Inc.’s (“NYISO”) August 19, 2011 compliance filing implementing Order No. 745. Continue Reading FERC Grants Rehearing in Part on NYISO Order No. 745 Compliance Filing
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