On May 17, 2018, FERC issued Order No. 833-A wherein it denied rehearing of Order No. 833 and granted, in part, Edison Electric Institute’s (“EEI”) request for clarification of Order No. 833.  Order No. 833 amended FERC’s regulations regarding Critical Energy Infrastructure Information (“CEII”), as directed by the FAST Act.  The FAST Act, signed into law on December 4, 2015, added section 215A to the Federal Power Act (“FPA”) to improve the security and resilience of energy infrastructure in the face of emergencies.  The FAST Act also directed FERC to issue regulations on the procedures for designating certain material as CEII, provided for the imposition of sanctions on any party who knowingly discloses CEII, and authorized the voluntary sharing of CEII material. Continue Reading FERC Clarifies CEII Rules

On March 17, 2018, FERC issued a Notice of Proposed Rulemaking (“NOPR”) proposing to eliminate the Licensed Hydropower Development Recreation Report, designated as FERC Form No. 80 (“Form 80”), which collects information on the use and development of recreational facilities at licensed hydropower projects.  In addition, FERC proposed in the NOPR to revise related regulations in order “to modernize public notice practices, clarify recreational signage requirements, and provide flexibility to assist licensees’ compliance efforts.”  Continue Reading FERC Proposes to Eliminate Form 80 for Hydroelectric Projects

On May 8, 2018, FERC rejected PJM Interconnection, L.L.C.’s (“PJM”) proposed revisions to its Open Access Transmission Tariff (“Tariff”) and Reliability Assurance Agreement Among Load Serving Entities in the PJM Region.  PJM stated that these revisions would reform its Incremental Auctions and its method for addressing excess capacity in the PJM region (“Incremental Auction Proposal”).  PJM specified that its current market rules do not protect against, and may in fact provide an incentive to engage in, speculative behavior, which distort price signals on the value of capacity.  FERC rejected PJM’s Incremental Auction Proposal because, according to FERC, PJM did not support its argument that speculative behavior is actually transpiring, and PJM already had procedures in place to address this activity if it is actually occurring. Continue Reading FERC Rejects PJM Tariff Proposal to Reduce Capacity Market Arbitraging

On April 27, 2018 (“April 27 Order”), FERC denied a rehearing request of Basin Electric Power Cooperative (“Basin Electric”), Heartland Consumers Power District (“Heartland”), and Missouri River Energy Services (“Missouri River”; collectively, “Rehearing Parties”).  The Rehearing Parties contended that their grandfathered agreement regarding the Missouri Basin Power Project was eligible for carve-out treatment under the Southwest Power Pool, Inc. (“SPP”) Open Access Transmission Tariff (“SPP Tariff”).  In this proceeding, “carve-out treatment” refers to an exemption from congestion charges and marginal losses.  FERC ultimately rejected the rehearing request because it found, among other reasons, that Rehearing Parties are not similarly situated to another party, who had already been given carve-out treatment. Continue Reading FERC Rejects Rehearing Request Regarding SPP Congestion Charge Exemptions

On April 25, 2018, FERC approved a Stipulation and Consent Agreement (“Settlement”) between the Office of Enforcement (“OE”) and PSEG Resources & Trade, LLC (“PSEG).  The Settlement resolves an investigation into whether PSEG violated certain sections of the PJM Interconnection, L.L.C. (“PJM”) Tariff, Operating Agreement, and FERC’s Market Behavior Rule, when PSEG submitted incorrect cost-based offers into the PJM energy market between 2005 and 2014.  FERC determined that the Settlement was a fair and equitable resolution of the matter, and that the penalty imposed upon PSEG reflected the nature and seriousness of the violations.  Continue Reading FERC Approves Settlement with PSEG Subsidiary over Allegations of Inaccurate Cost-Based Offers in PJM Energy Market

On April 19, 2018, FERC issued a final rule (“Order No. 844”) addressing transparency in markets operated by Regional Transmission Organizations (“RTOs”) and Independent System Operators (“ISOs”).  FERC required that each RTO/ISO establish in its tariff: requirements to report information about uplift payments for each resource and transmission zone; requirements to report information on each operator-initiated commitment; and the transmission constraint penalty factors used in its market software.  Order No. 844 will become effective 75 days after publication in the Federal Register. Continue Reading FERC Issues Final Rule Regarding Transparency in Price Formation

On April 10, 2018, FERC approved a Stipulation and Consent Agreement (“Settlement”) among the Office of Enforcement (“OE”), ETRACOM LLC (“ETRACOM”), and Michael Rosenberg (together, with ETRACOM, “Respondents”) as in the public interest.  OE claimed that Respondents violated federal law and FERC’s rules against anti-manipulation in the California Independent System Operator Corp. (“CAISO”) wholesale electric market.  FERC determined that the Settlement was fair and reasonable and resolved all outstanding claims and proceedings between OE and the Respondents. Continue Reading FERC Approves Settlement with ETRACOM for Market Manipulation Allegations

On March 30, 2018, FERC rejected PJM Interconnection, L.L.C.’s (“PJM”) October 17, 2017 proposed tariff revisions to improve the performance of the PJM frequency regulation (“Regulation”) market (the “Regulation Proposal”).  According to PJM, the revisions were needed in light of a number of ongoing operational and market issues that had developed in the Regulation market.  FERC rejected the Regulation Proposal because it did not comply with the requirements of Order No. 755 and FERC’s regulations to compensate all Regulation resources based on the actual quantity of Regulation service provided. Continue Reading FERC Rejects PJM’s Regulation Market Tariff Revision

On March 28, 2018, FERC partially accepted the Midcontinent Independent System Operator, Inc.’s (“MISO”) Order No. 831 compliance filing (“March 28 Order”).  In Order Nos. 831 and 831-A, FERC required Regional Transmission Organizations (“RTOs”) and Independent System Operators (“ISOs”) to amend their respective tariff provisions governing existing offer caps on incremental energy offers, which FERC determined was necessary to: (1) avoid suppressing Locational Marginal Prices (“LMPs”) below the marginal cost of production; and (2) fully compensate generation resources for the costs incurred to serve load (see November 21, 2016 edition of the WER).  Continue Reading FERC Partially Accepts MISO Order No. 831 Compliance Filing, Orders Further Modifications to MISO Tariff

On March 20, 2018, FERC extended the time for entities to submit reply comments to the filings submitted by the Regional Transmission Organizations (“RTOs”) and Independent System Operators (“ISOs”) in the new grid resiliency proceeding.  Several trade associations requested additional time to respond to the “significant” comments that the RTOs/ISOs submitted to FERC, pertaining to the resilience of the bulk power system in their regions. Continue Reading FERC Extends Deadline for Comments on Resiliency Proceeding