On April 19, 2018, FERC issued a final rule (“Order No. 845”) revising its pro forma Large Generator Interconnection Procedures (“LGIP”) and the pro forma Large Generator Interconnection Agreement (“LGIA”) to address reforms of generator interconnection procedures and agreements for generators of more than 20 megawatts. FERC adopted a majority of the reforms proposed in FERC’s December 15, 2016 Notice of Proposed Rulemaking (“NOPR”). Continue Reading FERC Finalizes Generator Interconnection Procedures and Agreements Reforms
On April 10, 2018, FERC approved the Midcontinent Independent System Operator, Inc.’s (“MISO”) proposed revisions to Attachment X of its Open Access Transmission, Energy and Operating Reserve Markets Tariff (“Tariff”). Specifically, MISO proposed to require interconnection customers seeking to modify their elected level of Network Resource Interconnection Service (“NRIS”), to do so earlier on in the generator interconnection process. Continue Reading FERC Approves MISO Interconnection Revisions Regarding Modifications to NRIS Designations
On April 2, 2018, FERC denied a complaint alleging that the interconnection process under Midcontinent Independent System Operator, Inc.’s (“MISO”) tariff was unjust and unreasonable because certain wind generators were experiencing delays in the process, such that those customers would not receive a Generator Interconnection Agreement (“GIA”) in time to receive Federal Production Tax Credit (“PTC”) benefits. In doing so, FERC found that there was no evidence that MISO was not making reasonable efforts to meet interconnection deadlines, as required by its tariff. FERC added that prior precedent does not require MISO to ensure wind generators receive their GIA in time to receive full PTC benefits. Continue Reading FERC Holds that MISO Interconnection Process Need Not Ensure that Interconnection Customers Receive PTC Benefits
On March 23, 2018, FERC accepted ISO New England Inc.’s (“ISO-NE”) filing to terminate a portion of the Capacity Supply Obligation (“CSO”) for a wind-powered electric generation facility (the “Disputed Portion”) owned by Blue Sky West, LLC (“Blue Sky West”). Despite protests from Blue Sky West, FERC approved the requested termination, effective March 1, 2018. Continue Reading FERC Accepts ISO-NE Termination of Portion of Capacity Supply Obligation for Wind Generator; Clarifies Timing of ISO-NE Termination Provisions
On March 16, 2018, the U.S. Court of Appeals for the District of Columbia Circuit (“D.C. Circuit”) affirmed FERC’s (1) reduction in NorthWestern Corporation’s (“NorthWestern”) Schedule 3 regulation service rate by removing “regulation-down” capacity from the rate’s numerator and increasing the denominator to the full nameplate capacity of NorthWestern’s generating facility and (2) decision to order NorthWestern to refund customers the difference between NorthWestern’s proposed rate and FERC’s approved rate. Continue Reading D.C. Circuit Affirms FERC’s Modifications to NorthWestern’s Regulation Service Rate
On February 21, 2018, FERC accepted PJM Interconnection, L.L.C.’s (“PJM”) Order No. 825 compliance filing, subject to condition. In Order No. 825, FERC directed each regional transmission organization (“RTO”) and independent system operator (“ISO”) to align settlement and dispatch intervals, and modify certain rules regarding when shortage pricing is triggered. Continue Reading FERC Conditionally Accepts PJM’s Order No. 825 Compliance Filing on Shortage Pricing and Settlement and Dispatch Alignment
On February 15, 2018, FERC issued a notice that staff will hold a technical conference on April 10-11, 2018 to discuss the participation of distributed energy resources (“DER”) in markets operated by Regional Transmission Organizations and Independent System Operators. As FERC stated in the notice, the two-day conference will host several panels on two broad DER-related agendas: first, to continue considering the DER-related reforms initially proposed in the rulemaking culminating in the concurrently-issued Order No. 841 on electric storage participation in organized markets; and second, to broadly explore issues related to the potential effects of DERs on the bulk power system.
Additional details will be provided in a supplemental notice to be issued closer to the conference date. The deadline to submit a nomination form to participate in the conference as a panelist is March 15, 2018. Those interested in attending in person are encouraged to register online by April 3, 2018.
A copy of FERC’s notice, and a description of the panels to be convened during the conference, can be found here.
In response to concerns regarding the changing nature of the nation’s energy supply portfolio and the emergence of promising energy storage technologies, the Commission in recent years issued several notices of inquiry, notices of proposed rulemaking, and policy statements regarding various energy storage and ancillary service supply issues. Additionally, the Commission considered but ultimately declined to pursue the Department of Energy-initiated rulemaking on grid resiliency and reliability. On February 15, 2018, however, the Commission took concrete action by issuing a pair of Final Rules, addressing (i) storage participation in regional markets; and (ii) the provision of primary frequency response, a critical grid support service. Continue Reading FERC Issues Final Rules on Electric Storage Participation in RTOs/ISOs and Primary Frequency Response for New Generators
On February 2, 2018, the United States Court of Appeals for the District of Columbia Circuit (“D.C. Circuit”) remanded FERC’s decision denying complaints that the ISO New England, Inc.’s (“ISO-NE”) rules locking in prices for new entrants to ISO-NE’s Forward Capacity Market (“FCM”) result in price suppression and discriminatory rates for existing suppliers. In doing so, the D.C. Circuit held that FERC did not adequately explain why its prior decision to reject a similar proposal did not apply to ISO-NE’s rules. Continue Reading D.C. Circuit Remands FERC Decision Upholding ISO-NE FCM Rules Locking in Prices for New Entrants
On February 5, 2018, FERC conditionally accepted a proposal by the PJM Interconnection, L.L.C. (“PJM”) to amend its Open Access Transmission Tariff (“OATT”) and Amended and Restated Operating Agreement (“Operating Agreement”) to accommodate additional pseudo-tied and dynamically scheduled resources into the PJM region. FERC accepted the proposal and provided an effective date of November 9, 2017, provided that PJM submits a compliance filing addressing FERC’s limited concerns in the order. Continue Reading FERC Conditionally Accepts PJM Tariff Amendments Related to Pseudo-Ties and Dynamic Schedules