On October 5, 2018, FERC accepted revisions to the New York Independent System Operator, Inc.’s (“NYISO”) methodology used to determine Locational Installed Capacity Requirements (“LCRs”) in NYISO’s Installed Capacity (“ICAP”) market. In doing so, FERC found that the proposed Alternative LCR Methodology was just and reasonable because, among other things, the Alternative LCR Methodology results in LCRs, and thus capacity costs, that are reasonably aligned with the associated reliability benefits.
On October 3, 3018, President Donald Trump announced his intent to nominate Bernard L. McNamee to fill the vacant seat on FERC, for the term expiring June 30, 2020, resulting from Commissioner Robert Powelson’s resignation. If nominated, confirmed, and sworn in, Mr. McNamee would restore the Republican majority among FERC Commissioners.
On September 20, 2018, FERC partially accepted tariff amendments proposed by the California Independent System Operator Corporation (“CAISO”) aimed at improving the efficiency of its congestion revenue rights (“CRR”) market rules. Specifically, CAISO proposed to decrease the percentage of transmission system capacity available in the annual CRR allocation and auction processes from 75 percent to 65 percent (“Capacity Release Reduction Proposal”). FERC accepted the Capacity Release Reduction Proposal, finding it just and reasonable. CAISO also proposed to eliminate full funding of CRRs and instead scale CRR payouts, on a constraint-by-constraint basis, up to the extent that CAISO collects sufficient revenue through the day-ahead market congestion charges and charges to counterflow CRRs (“Scaling Proposal”). FERC, however, rejected the Scaling Proposal as not just and reasonable. Continue Reading FERC Partially Accepts CAISO Tariff Amendments Aimed at Improving Efficiency of Congestion Revenue Rights Market Rules
On September 20, 2018, FERC dismissed Nevada Hydro Company, Inc.’s (“Nevada Hydro”) request that (1) the Lake Elsinore Advanced Pumped Storage (“LEAPS”) facility is a transmission facility and (2) LEAPS is entitled to cost-based rate recovery under the California Independent System Operator Corporation’s (“CAISO”) Transmission Access Charge. FERC found that Nevada Hydro’s request is premature because LEAPS has not been studied in the CAISO Transmission Planning Process (“TPP”) to determine whether it addresses a transmission need identified through that process, and, if such a need were met, how the facility would be operated. Continue Reading FERC Finds Request to Treat Pumped Storage as Transmission Facility Premature
On September 6, 2018, FERC mostly denied rehearing of its February 20, 2018 order (“Proposal Order”) that accepted PJM Interconnection, L.L.C.’s (“PJM”) proposal to reduce the number of bidding points at which virtual transactions may be submitted by market participants (“Virtual Transactions Proposal”), finding PJM’s Virtual Transactions Proposal just and reasonable. However, FERC did grant rehearing with respect to PJM’s request to modify the effective date of the revisions accepted in the Proposal Order to February 22, 2018. Continue Reading FERC Mostly Denies Rehearing of Order Accepting PJM Proposal to Reduce Bidding Points for Virtual Transactions