On January 31, 2019, Commissioner Cheryl LaFleur announced that she is no longer seeking a third term and will be leaving FERC this year.  Commissioner LaFleur stated that she plans to stay at least until her current term expires, on June 30, 2019, and may stay longer depending on her plans and the appointment of her successor. Continue Reading Commissioner LaFleur Will Not Pursue Another Term

On January 23 and 24, 2019, the Department of Energy (“DOE”) announced $78 million in federal funding to improve existing coal-fired power plants and for grid modernization.  Both funding programs come from DOE’s Office of Fossil Energy. Continue Reading DOE Announces New Funding for Improvements to Existing Coal-Fired Power Plants and Grid Modernization

On January 8, 2019, FERC approved revisions to the PJM Interconnection, L.L.C. (“PJM”) Tariff and Operating Agreement regarding the use of transmission constraint penalty factors in its market operations.  PJM’s filing responds to new market transparency requirements set out in Order No. 844, the result of FERC’s rulemaking addressing uplift cost allocation and transparency in Regional Transmission Organizations (“RTOs”) and Independent System Operators (“ISOs”).  In accepting PJM’s proposed revisions, FERC found the revisions would provide transparency regarding PJM’s transmission constraint penalty factor procedures and also produce more transparent and appropriate pricing and investment signals that correspond to an underlying transmission constraint. Continue Reading FERC Approves PJM Tariff Revisions Regarding Transmission Constraint Penalty Factors

On December 20, 2018, FERC issued a series of nine orders addressing how certain public utilities calculate accumulated deferred income tax (“ADIT”) balances in their transmission formula rates.  The orders were the result of separate proceedings under Section 206 of the Federal Power Act (“FPA”), which FERC initiated after concluding in a June 21, 2018 order (“June Order”) that the use of its former “two-step” ADIT averaging methodology may be unjust and unreasonable. Continue Reading FERC Addresses ADIT-Related Formula Rate Calculations for Certain Utilities

On December 3, 2018, several states filed an amicus brief urging the U.S. Court of Appeals for the D.C. Circuit (“D.C. Circuit”) to vacate an order issued by FERC that announced a shift in policy limiting the Commission’s review of greenhouse gas impacts during pipeline permitting. Continue Reading States Chime in During D.C. Circuit Review of FERC Pipeline Permitting Policy

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 15, 2018, FERC issued a Notice of Proposed Rulemaking (“NOPR”) addressing the effect of the Tax Cuts and Jobs Act of 2017 (“TCJA”), which lowered the federal corporate tax rate from 35 percent to 21 percent, on accumulated deferred income tax (“ADIT”) balances. Specifically, FERC proposed to require transmission companies to remove excess ADIT or add deficient ADIT to their rate bases. In addition, FERC issued a policy statement providing accounting and ratemaking guidance related to the treatment of ADIT (“Policy Statement”). Continue Reading FERC Proposes Rule, Provides Guidance on Treatment of Impact of Tax Reductions on ADIT

On November 6, 2018, clean energy ballot initiatives failed in several states.  In particular, voters rejected Arizona’s 50 percent renewable energy mandate, Washington’s fee on carbon emissions, Colorado’s limits on oil and gas drilling and Nevada’s retail choice initiative.  However, voters passed Nevada’s 50 percent renewable energy portfolio. Continue Reading Voters Reject Some State Ballot Initiatives on Clean Power and Deregulation