On November 19, 2018, FERC denied a complaint filed by CXA La Paloma, LLC (“La Paloma”) requesting that FERC use its jurisdiction over resource adequacy to direct the California Independent System Operator Corp. (“CAISO”) to implement centralized capacity procurement.  FERC found that La Paloma failed to meet its burden to demonstrate that CAISO’s tariff was unjust, unreasonable, or unduly discriminatory or preferential under section 206 of the Federal Power Act. Continue Reading FERC Declines to Require New CAISO Capacity Market

On November 26, 2018, FERC partially granted the California Independent System Operator Corp. (“CAISO”) a temporary extension of two sets of tariff provisions concerning natural gas system limitations on CAISO’s system and corresponding market operations.  While FERC temporarily extended six tariff provisions related to the Aliso Canyon gas storage facility (“Aliso Canyon”) effective November 30, 2018, and December 16, 2018, as requested, it rejected CAISO’s proposal to temporarily extend the tariff revisions regarding gas price scalars. Continue Reading FERC Partially Grants CAISO Waiver of Aliso Canyon Related Tariff Provisions

On November 15, 2018, FERC issued a Notice of Proposed Rulemaking (“NOPR”) to implement Public Law No. 115-247, which amended section 203 of the Federal Power Act (“FPA”) to clarify that FERC authorization is only required for mergers or consolidations valued at more than $10 million.  In addition, in accordance with the new law’s requirements, FERC proposes that transactions that are valued at $10 million or less, but more than $1 million, would only be subject to a notification requirement.

Continue Reading FERC Issues NOPR Implementing Changes to FPA Section 203

On November 15, 2018, Bernard L. McNamee, who has been nominated to fill the vacancy left by former FERC Commissioner Robert Powelson, testified before the Senate Committee on Energy and Natural Resources (“Committee”).  Currently, Mr. McNamee heads the Department of Energy’s (“DOE”) Office of Policy. Continue Reading FERC Nominee Bernard McNamee Testifies Before Senate Committee on Energy & Natural Resources

On October 31, 2018, FERC Chairman Neil Chatterjee submitted comments (“October 31 Comments”) on the U.S. Environmental Protection Agency’s (“EPA”) proposed rule, the Affordable Clean Energy rule (“ACE Rule”).  If approved, the ACE Rule would implement new regulations for states to develop plans to reduce Greenhouse Gas (“GHG”) emissions from certain existing Electric Utility Generating Units.  Chairman Chatterjee’s comments generally supported the ACE Rule. Continue Reading FERC Chairman Files Comments with EPA on Affordable Clean Energy Rule

On November 5, 2018, the American Wind Energy Association and the Wind Coalition (together, the “Wind Developers”) filed a complaint against Southwest Power Pool, Inc. (“SPP”) regarding SPP’s Bylaws and Membership Agreement.  Specifically, the Wind Developers object to the sections of the Bylaws and Membership Agreement which impose financial obligations (“exit fees”) on independent power producers (“IPPs”), other comparable non-transmission owners (“non-TOs”), and non-load-serving entities (“non-LSEs”).  The Wind Developers argue that the exit fee violates cost causation principles, may pose a barrier to entry into SPP to vote on critical issues, directly affects jurisdictional rates, and that therefore, the exit fee is unjust, unreasonable, and unduly discriminatory. Continue Reading Wind Developers File Complaint Against SPP Exit Fee for IPPs, non-TOs, and non-LSEs

On October 31, 2018, FERC accepted revisions to the Midcontinent Independent System Operator, Inc.’s (“MISO”) Open Access Transmission, Energy and Operating Reserve Markets Tariff (“Tariff”) to enhance the locational aspects of its resource adequacy construct (“Filing”).  In March of 2018 (“March 2018 Filing”), MISO had proposed a similar filing, which FERC rejected, without prejudice, on August 2, 2018.  There, FERC found two elements of the March 2018 Filing to be unjust and unreasonable, but FERC provided MISO with guidance with respect to any future filing.  With the exception of those two elements, MISO stated that its Filing contains the same proposal and justification for the proposal as in its March 2018 Filing. Continue Reading FERC Accepts Revisions to the Locational Aspects of MISO’s Resource Adequacy Construct

On October 31, 2018, FERC approved three proposed revisions to the Open Access Transmission, Energy, and Operating Reserve Markets Tariff (“Tariff”) of the Midcontinent Independent System Operator, Inc. (“MISO”).  These revisions establish categorical time limits to expressly bar settlement disputes submitted after these specified time periods (“Time Bar Revisions”).  The proposed Tariff revisions became effective November 1, 2018. Continue Reading FERC Conditionally Accepts MISO Tariff Revisions Establishing Time Limits to Settlement Disputes and Adjustments

On October 23, 2018, the U.S. Court of Appeals for the D.C. Circuit (“D.C. Circuit”) in Maine Council of the Atlantic Salmon Federation v. FERC rejected a challenge brought by several conservation groups (“Petitioners”) in response to a FERC order amending the licenses for three hydroelectric projects on Maine’s Kennebec River.  FERC’s order approved an an interim species protection plan for endangered Atlantic salmon and a handling and protection plan for shortnose and Atlantic sturgeon.  The Petitioners raised issues arising under the Endangered Species Act and claimed that FERC’s order violated the Kennebec Hydro Developers Group Agreement (“Kennebec Agreement”), of which the licensees are parties. Continue Reading D.C. Circuit Rejects Challenges to FERC Amendment of Hydro Project License