On March 9, 2017, FERC issued notice that FERC staff will convene a technical conference on June 26, 27, and 28, 2017 to explore opportunities for increasing market and planning efficiency through improved software. FERC staff will facilitate a discussion regarding advances in market modeling that have the potential to improve efficiency. FERC will accept comments following the conference, with a deadline of July 31, 2017. Continue Reading FERC to Convene Technical Conference on Increasing Real-Time and Day-Ahead Market Efficiency through Improved Software
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 15, 2017, the PJM Interconnection, L.L.C. (“PJM”) Board authorized more than $1.5 billion in electric transmission projects in the PJM-region as part of the Regional Transmission Enhancement Plan process. According to PJM President and CEO Andy Ott, the current round of project approvals addresses “the growing need to replace aging infrastructure, energy efficiency, and the resulting reduction in the growth of demand for electricity.” Both the list of approved projects and the proposed cost allocation for each project will be the subject of future filings with FERC.
On December 15, 2016, FERC issued a Notice of Proposed Rulemaking (“NOPR”) in which it proposed to revise its regulations and the pro forma Large Generator Interconnection Procedures (“LGIP”) and pro forma Large Generator Interconnection Agreement (“LGIA”). According to FERC, the proposed reforms could help “improve the efficiency of processing interconnection requests for both transmission providers and interconnection customers, maintain reliability, increase energy supply, balance the needs of interconnection customers and transmission owners, and remove barriers to needed resource development.” Comments on the proposed reforms in FERC’s NOPR are due 60 days after publication of the NOPR in the Federal Register. Continue Reading FERC Proposes Generator Interconnection Changes
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 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
On November 17, 2016, FERC issued Order No. 831, revising its regulations regarding incremental energy offer caps imposed by Regional Transmission Organizations (“RTOs”) and Independent System Operators (“ISOs”). As a result, RTOs and ISOs will be required to cap each resource’s “incremental energy offer”—the portion of an energy resource’s supply market offer that can vary depending on output or demand levels—at the higher of $1,000/megawatt-hour (“MWh”) or that resource’s verified actual or expected cost-based incremental energy offer. RTOs and ISOs must also cap verified cost-based incremental energy offers at $2,000/MWh when calculating locational marginal prices (“LMP”). According to FERC, Order No. 831 will reduce the likelihood that offer caps will suppress LMPs below the marginal cost of production, as well as ensure fair compensation for generators and more efficient resource dispatching from grid operators. Continue Reading FERC Revises Offer Caps in Regional Wholesale Electricity Markets
On November 4, 2016, FERC issued an order denying a complaint filed by HORUS Central Valley Solar 1, LLC and HORUS Central Valley Solar 2, LLC (jointly, “HORUS”) against the California Independent System Operator Corporation (“CAISO”). In the complaint, HORUS requested that the Commission prevent CAISO from imposing interconnection procedures and study requirements in addition to those already imposed on HORUS by the Western Area Power Administration (“WAPA”). In denying the complaint, FERC reaffirmed its existing policy that generators must obtain transmission service at or beyond the point where facility ownership changes, as well as beyond the interconnection point with the wider integrated grid. Because HORUS sought to connect to WAPA-owned interconnection facilities, and those facilities in turn interconnected with CAISO, HORUS was required to comply with both WAPA’s and CAISO’s interconnection procedures. Continue Reading FERC Upholds Applicability of CAISO Interconnection Procedures for Third-Parties Directly Interconnecting to WAPA-Owned Facilities
On November 8, 2016, FERC approved the California Independent System Operator Corporation’s (“CAISO”) proposed tariff revisions intended to improve the effectiveness of its local market power mitigation procedures by reducing the frequency of instances where such procedures under-predict congestion. Going forward, CAISO will apply mitigation measures at real-time dispatch intervals. Continue Reading FERC Approves CAISO’s Revisions to Local Market Power Mitigation Procedures
On October 31, 2016, FERC approved PJM Interconnection, L.L.C.’s (“PJM”) proposed revisions to Schedule 1 of the PJM Amended and Restated Operating Agreement (“Operating Agreement”) and the parallel provisions of Attachment K-Appendix of the PJM Open Access Transmission Tariff (“Tariff”). The approved revisions modify PJM’s compensation procedures for load reductions during emergency conditions.