On April 6, 2017, Potomac Economics, Ltd. (“Potomac Economics”), the market monitor for the Midcontinent Independent System Operator, Inc. (“MISO”), New York Independent System Operator, Inc. (“NYISO”), and ISO New England Inc., requested that FERC eliminate PJM Interconnection, L.L.C.’s (“PJM”) requirement that external Capacity Performance Resources must be pseudo-tied to PJM. In doing so, Potomac Economics argued that, among other issues, the requirement has caused congestion management issues for MISO and could impose similar and more significant costs on NYISO. Continue Reading Potomac Economics Requests That FERC Eliminate PJM’s Pseudo-Tie Requirement for External Capacity Performance Resources
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 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.