On March 6, 2019, FERC denied GridLiance GP, LLC’s (“GridLiance”) proposal (“Proposed Transaction”) to acquire from People’s Electric Cooperative certain transmission lines and related facilities (“Assets”).  In its order, FERC concluded that GridLiance failed to demonstrate that the benefits of its ownership of the facilities would offset the rate increases that GridLiance acknowledged would result from the Proposed Transaction.  However, because FERC denied the proposal without prejudice, GridLiance can make a new filing that, according to FERC “proposes adequate ratepayer protection and demonstrates specific additional benefits to offset a rate increase.”

Continue Reading FERC Issues Rare Denial of Proposed Transmission Line Acquisition

On February 21, 2019, FERC issued a Final Rule, Order No. 856, amending its regulations related to interlocking officers and directors in response to a Notice of Proposed Rulemaking (“NOPR”) issued on July 18, 2018 to revise Parts 45 and 46 of its regulations (see July 24, 2018 edition of the WER).

Continue Reading FERC Amends Its Interlocking Officers and Directors Regulations

On December 14, 2018, Vineyard Wind, LLC (“Vineyard Wind”) filed a Petition with FERC to waive the pro-rata proration requirements of the ISO New England, Inc. (“ISO-NE”) Transmission, Markets and Services Tariff (“Tariff”) so that Vineyard Wind could participate in the upcoming ISO-NE Forward Capacity Auction 13 (“Auction 13”) as a Renewable Technology Resource (“RTR”).  Because time was of the essence, Vineyard Wind asked FERC to render an expedited decision no later than January 29, 2019.  FERC took no action on the Petition, however, and as of this writing, has also not taken any action on Vineyard Wind’s subsequent Emergency Motion for relief, rendering it all but certain that Vineyard Wind will be unable to participate in Auction 13. Continue Reading FERC Takes no Action on Vineyard Wind’s Petition for RTR Status

On January 18, 2019, FERC accepted PJM Interconnection, L.L.C.’s (“PJM”) proposed revisions to both PJM’s Amended and Restated Operating Agreement and Open Access Transmission Tariff (“Tariff”) designed to allow PJM to stop using certain resources to calculate the frequency regulation (“regulation”) market clearing price and reduce spikes in the clearing price in PJM’s regulation market.  FERC found the proposal to be a narrowly-tailored solution to the price spike problem, while noting that broader issues raised in protests regarding PJM’s proposal were beyond the scope of the proceeding and are currently pending before the Commission in other dockets regarding PJM’s regulation market design. Continue Reading FERC Accepts “Targeted” PJM Tariff Revisions on Regulation Service

On January 17, 2019, FERC denied North Carolina Electric Membership Corporation’s (“NCEMC”) Formal Challenge and Complaint against Duke Energy Progress, LLC’s (“DEP”) transmission formula rate and Joint Open Access Transmission Tariff (“Joint OATT”) for failing to reflect in its wholesale transmission rates reductions related to federal, and North Carolina state, corporate income tax changes.  For various reasons discussed below, FERC denied NCEMC’s Complaint because it found that DEP had correctly applied its historical test year formula rate methodology. Continue Reading FERC Rejects Complaint Alleging Duke Failed to Account for Tax Changes in Formula Rate

On December 18, 2018, FERC eliminated the requirement for hydroelectric project licensees to file Form 80, which solicited information on the use and development of recreation facilities at FERC-licensed hydropower projects.  FERC also revised Sections 8.1 and 8.2 of its regulations to (1) modernize licensee public notice practice, (2) clarify recreational signage requirements, and (3) provide flexibility to assist licensees’ compliance with these requirements.  The Final Rule will go into effect 90 days after it is published in the Federal Register. Continue Reading FERC Eliminates Form 80 for Hydroelectric Projects

On December 11, 2018, FERC approved the Midcontinent Independent System Operator, Inc.’s (“MISO”) proposed tariff revisions to remove the service territory of Entergy New Orleans, LLC (“Entergy New Orleans”) from Cost Allocation Zone 9 to its own new Cost Allocation Zone 12 (“Proposal”).  FERC found that the Proposal was just and reasonable because it would result in an allocation of costs that is at least roughly commensurate with MISO’s Transmission Expansion Plan (“MTEP”) economic project benefits. Continue Reading MISO to Establish New Rate Zone for Entergy New Orleans

On December 6, 2018, the United States Senate confirmed Bernard L. McNamee as a FERC Commissioner.  President Donald Trump nominated McNamee to fill the vacancy left by Commissioner Robert Powelson following Powelson’s August 2018 resignation from FERC to become president and CEO of the National Association of Water Companies (see October 9, 2018 edition of the WER).  McNamee was sworn in on December 11, 2018, returning FERC to its full five-member complement. Continue Reading Bernard McNamee Seated as FERC Commissioner