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.
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.
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 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.
On February 3, 2017, FERC partially granted a complaint against the New York Independent System Operator, Inc. (“NYISO”) regarding the application of buyer-side market power mitigation rules to demand response resources in NYISO’s installed capacity market (“ICAP”). In its order, FERC found that NYISO’s application of its mitigation rules was unjust and unreasonable as to future demand-side generators. FERC allowed prospective exemptions for such resources, but denied exemptions for such resources currently subject to NYISO market power mitigation. Separately, outgoing Commissioner Bay wrote a lengthy concurrence in which he argued that FERC should reconsider the rationale behind its minimum offer price rule policy (“MOPR”) and its applicability in wholesale electricity markets. Continue Reading FERC Exempts Certain Demand Response Resources from Buyer-Side Mitigation in NYISO; Bay Questions FERC’s Minimum Offer Price Rule Policy Rationale in Concurrence
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 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.
On January 9, 2017, FERC approved ISO New England Inc.’s (“ISO-NE”) proposed revisions to its Transmission, Markets and Services Tariff (“Tariff”) to change the source of natural gas prices used in calculating the daily energy market offer threshold for Import Capacity Resources, the Peak Energy Rent Strike Price, and the Forward Reserve Threshold Price under ISO-NE’s Tariff. In doing so, FERC found that ISO-NE’s proposal to calculate these thresholds using the Intercontinental Exchange’s (“ICE”) AGT-CG (Non-G) hub instead of ICE’s AGT-CG hub was just and reasonable because it changes the natural gas price index from one that is rarely liquid to one that is reliably liquid and satisfies FERC’s requirements for using price indices in tariffs. Continue Reading ISO-NE Modifies Natural Gas Price Source Used to Calculate Market Thresholds
On January 3, 2017, FERC accepted the Midcontinent Independent System Operator, Inc.’s (“MISO”) proposed revisions to its Generator Interconnection Procedures (“GIP”) and its pro forma Generator Interconnection Agreement (“GIA”) contained in Attachment X of its Open Access Transmission, Energy and Operating Reserve Markets Tariff (“Tariff”). MISO’s revisions result from an extensive stakeholder process intended to improve the efficiency of its queue for generator interconnection projects. Continue Reading FERC Accepts MISO’s Revisions to Generator Interconnection Procedures