Category — FERC News

On May 16, 2013, FERC issued an order on an investigation (“Investigation Order”) that will require revisions to the formula rate protocols of the Midcontinent (previously Midwest) Independent System Operator, Inc. (“MISO”) and its Transmission Owners (“TOs”).  The formula rate protocols are used by the TOs when calculating annual charges pursuant to their formula transmission rates.  As a result of FERC’s Investigation Order, MISO and the TOs must revise their formula rate protocols to: (1) allow for increased participation in the annual update of the TOs formula rates; (2) provide interested parties with additional and more specific information regarding the annual update process; and (3) allow interested the opportunity to challenge those updates. [Read more →]

On May 16, 2013, the Commission issued Order No. 779, “Reliability Standards for Geomagnetic Disturbances,” directing the North American Electric Reliability Corporation (“NERC”) to submit for approval reliability standards that address the impact of Geomagnetic Disturbances (“GMD”) on the “reliable operation of the Bulk Power System.”  Order No. 779 follows an October 12, 2012 Notice of Proposed Rulemaking (“NOPR”), and reflects comments on the NOPR received by the Commission (see October 21, 2012 edition of the WER). [Read more →]

On May 8, 2013, FERC denied Linden VFT, LLC’s (“Linden”) complaint against two power marketers, Brookfield Energy Marketing, L.P. (“Brookfield”) and Cargill Power Markets, LLC (“Cargill”), for failure to pay pass-through charges related to PJM Interconnection, LLC (“PJM”) transmission upgrades.  In denying the complaint, FERC determined that Linden lacked the contractual authority to charge for the additional costs. [Read more →]

On May 9, 2013, FERC issued a notice that it will hold a special Commission meeting on May 16, 2013 to hear presentations from representatives of Regional Transmission Organizations (“RTOs”) and Independent System Operators (“ISOs”) on natural gas and electric coordination.  The meeting follows a November 15, 2012 order requiring RTOs and ISOs to brief FERC on their experiences during the winter and spring seasons, share any advances made in increased coordination between the two industries, and voice any concerns that have emerged. [Read more →]

On May 7, 2013, FERC announced that it will hold a Commissioner-led Technical Conference on reliability on Tuesday, July 9, 2013 from 9:00 AM to 5:00 PM.  While the conference will discuss policy issues related to reliability of the Bulk-Power System, the Commission will issue a more formal agenda for the conference at a later date. [Read more →]

On April 29, 2013, FERC accepted PJM Interconnection, L.L.C.’s (“PJM”) proposed Open Access Transmission Tariff revisions aimed at incentivizing the participation of an efficient mix of demand resource (“DR”) products in the PJM capacity auction.  PJM’s tariff revisions set up an additional test to establish the Limited DR Reliability Target for certain types of DR capacity products. [Read more →]

On April 29, 2013, three U.S. Senators sent a letter to FERC and the Commodity Futures Trading Commission (“CFTC”) urging greater cooperation between the two agencies.  Senators Dianne Feinstein (D-CA), Lisa Murkowski (R-AK), and Ron Wyden (D-OR) penned the open-letter requesting that FERC and the CFTC “execute more robust Memorandums of Understandings” (“MOUs”) to prevent market manipulation. [Read more →]

On April 23, 2013, FERC approved a Stipulation and Consent Agreement (“Settlement”) with Seneca Falls Power Corporation (“Seneca Falls”) for violations of its hydropower license.  In the Settlement, Seneca Falls agreed to pay a $150,000 civil penalty and invest $300,000 in project enhancements. [Read more →]

On April 19, 2013, FERC granted a complaint by Comverge, Inc., Viridity Energy, and Energy Curtailment Specialists (the “Demand Response Coalition”) alleging that PJM Interconnection L.L.C.’s (“PJM”) revisions to its Manual 18, PJM Capacity Market are unenforceable and violate section 205 of the Federal Power Act (“FPA”). [Read more →]

On April 23, 2013, FERC’s Director of Office of Energy Projects, Jeff C. Wright, testified before the Senate Committee on Energy and Natural Resources concerning draft legislation aimed at increasing hydropower production in the United States.  The draft legislation at issue included S. 545, “Hydropower Improvement Act of 2013” and H.R. 267, “Hydropower Regulatory Efficiency Act of 2013.”  In his testimony, Wright discussed FERC’s authority under the Federal Power Act (“FPA”) to issue licenses or exemptions for hydropower projects under its jurisdiction.  Wright further detailed FERC’s recent efforts to support small and “innovative” projects, including marine and hydrokinetic projects, and pumped storage projects. [Read more →]