On September 6, 2018, FERC denied the PJM Interconnection, L.L.C.’s (“PJM”) rehearing request of FERC’s prior order rejecting proposed revisions to PJM’s Amended and Restated Operating Agreement (“Operating Agreement”) and Open Access Transmission Tariff (“OATT”) that would allocate uplift charges to Up-to-Congest transactions (“UTCs”) similarly to other virtual transactions.  However, FERC granted rehearing in part to accept PJM’s proposal to exclude internal bilateral transactions from the calculation of supply and demand deviations for the purpose of uplift allocation. Continue Reading FERC Grants Partial Rehearing of PJM Uplift Allocation Order

On September 4, 2018, the United States Court of Appeals for the Third Circuit (“Third Circuit”) declined to review Pennsylvania’s water permit approval of Transcontinental Gas Pipe Line Company’s (“Transco”) Atlantic Sunrise Project.  The Third Circuit ruled that it had jurisdiction to hear the state agency’s certificate decision on appeal even though the certificate decision was simultaneously being appealed to another Pennsylvania agency. Continue Reading Third Circuit Rejects Multiple Challenges to Pennsylvania Water Permit for Atlantic Sunrise Project

On July 24, 2018, the U.S. Court of Appeals for the D.C. Circuit (“D.C. Circuit”) affirmed FERC’s 2015 and 2016 orders denying challenges to ISO New England’s (“ISO-NE”) ninth and tenth Forward Capacity Auctions (“FCA 9” and “FCA 10”) and approving the results of those auctions.  The D.C. Circuit found that petitioners, Utility Workers Union of America Local 464 and its President, Robert Clark, failed to establish standing to challenge the FERC orders approving the results of FCA 9 and FCA 10. Continue Reading D.C. Circuit Affirms FERC Finding of No Manipulation in ISO-NE Capacity Market Auction

On July 13, 2018, pursuant to section 205 of the Federal Power Act (“FPA”), FERC accepted and set for hearing a cost-of-service agreement between Constellation Mystic Power, LLC (“Mystic”), Exelon Generation Company, LLC (“Exelon”), and ISO New England Inc. (“ISO-NE”) providing cost-of-service compensation to Mystic for continued operation of two gas-fired generating units (“Mystic 8 and 9”) to ensure fuel security in New England.  Commissioners Powelson and Glick dissented. Continue Reading FERC Accepts and Sets for Hearing Cost-of-Service Compensation Agreement

On July 9, 2018, FERC denied Cloverland Electric Cooperative’s (“Cloverland”) application to terminate its mandatory obligation under the Public Utilities Regulatory Policies Act of 1978 (“PURPA”) to purchase electric energy and capacity from qualifying cogeneration or small power production facilities (“QF”) with a net capacity in excess of 20 megawatts.  In denying the request, FERC emphasized that direct membership in regional transmission organizations or independent system operators is necessary to meet the exemption Cloverland requested under PURPA. Continue Reading FERC Denies Application to Terminate PURPA Mandatory Purchase Obligation

On June 29, 2018, FERC rejected proposals by Calpine Corporation (“Calpine”) and PJM Interconnection, L.L.C. (“PJM”) to address what they view as shortcomings in PJM’s capacity markets resulting from what they characterize as state subsidy programs that suppress capacity prices (the “June 29 Order”).  Continue Reading FERC Rejects PJM’s Proposed Tariff Revisions and Initiates Section 206 Proceeding

On Thursday, June 28, 2018, the Senate approved ten individual hydropower bills by unanimous consent.  Seven of the ten were previously passed by the House and will now go to the President for his signature.  The remaining three bills have not yet been passed by the House, but in all three cases, the House has passed either a companion bill or bills with language similar to the Senate bills. Continue Reading Senate Approves Hydropower Bills by Unanimous Consent

On June 21, 2018, FERC approved tariff provisions proposed by the California Independent System Operator (“CAISO”).  Specifically, the Commission’s order approved, subject to compliance filing, CAISO’s proposals to revise the definition of which resources qualify as use-limited and to allow those resources to include opportunity cost adders in their bids, while rejecting CAISO’s proposed revisions relating to the Master File, an electronic database of generator-provided data on resources participating in CAISO markets, as well as its proposal to remove ramp rates as components of daily bids. Continue Reading FERC Approves CAISO’s Creation of Opportunity Cost Adder for Use-Limited Resources

On June 12, 2018, the Senate Energy and Natural Resources Committee hosted all five FERC Commissioners for an oversight hearing to discuss topics that included the agency’s approach to changes in the makeup of generating plants on the bulk power system and the efficiency of its energy infrastructure permitting processes. Continue Reading Senate Energy and Natural Resources Committee Holds Hearing on FERC Oversight