On March 6, 2020, FERC rejected ISO New England Inc.’s (“ISO-NE”) and the New England Power Pool Participants Committee’s proposed revisions to the ISO-NE Tariff intended to eliminate ISO-NE’s ability to retain a resource for local transmission reliability needs if that resource has been previously retained for fuel security purposes (“Proposed Tariff Revisions”). FERC found that the Tariff Revisions were not just and reasonable because they would limit ISO-NE’s ability to address potential future transmission reliability issues without alternative transmission solutions yet being in place. Continue Reading FERC Rejects ISO-NE Tariff Revisions Preventing Further Retention of Retained Fuel Security Resources

On February 27, 2020, FERC granted Southwest Power Pool, Inc.’s (“SPP”) request to further delay implementation of reforms designed to facilitate energy storage resource (“ESR”) participation in SPP’s markets. SPP requested the deferral in December 2019, explaining that it would not be able to implement its ESR participation model as scheduled due to ongoing delays in the development of a new market and transmission settlement system and software changes associated with FERC’s Order No. 841 reforms. FERC accepted SPP’s deferral request and ordered a new, August 5, 2021 effective date for SPP’s underlying Order No. 841 tariff changes. Commissioner Bernard McNamee issued a separate opinion concurring with FERC’s order. Continue Reading FERC Permits SPP to Delay Implementing Storage Resource Participation Rules Until August 2021

On March 4, 2020, FERC denied rehearing of its prior order rejecting the New Jersey Board of Public Utilities’ (“NJBPU”) complaint alleging unjust and unreasonable cost allocations for the Bergen-Linden Corridor transmission project (“BLC Project”). FERC found that it had already fully addressed the issues raised in the original complaint and that there was no need for an evidentiary hearing to evaluate disputed facts related to the BLC Project. Continue Reading FERC Denies Rehearing of Order Dismissing Cost Allocation Complaint for Bergen-Linden Corridor Project

On February 28, 2020, FERC rejected Midcontinent Independent System Operator, Inc.’s (“MISO”) Tariff proposal to subject generation resources that are not designated as capacity resources (“Non-Capacity Resources”) to MISO’s physical withholding rules in MISO’s day-ahead market. FERC determined that MISO’s proposed revisions lacked sufficient clarity and would effectively subject Non-Capacity Resources to a must-offer rule obligation without a corresponding capacity payment. Continue Reading FERC Rejects MISO Proposal to Impose Physical Withholding Penalty Charges on Non-Capacity Resources

On March 5, 2020, the United States Senate approved a motion to proceed on the American Energy Innovation Act (“AEIA”), S. 2657, after a cloture vote was called on the motion by Senate Majority Leader Mitch McConnell (R-Ky.) in order to move the bill to the Senate floor. However, on March 9, 2020, at least two measures to limit debate on the bill itself were rejected—opening the door for numerous floor amendments, including legislative language to limit greenhouse gas emissions that is projected to be offered by Senate Democrats.

The AEIA is a compendium of energy-related statutory provisions which was released in an omnibus, bipartisan legislative package on February 27, 2020 by Energy and Natural Resources Committee Chair Senator Lisa Murkowski (R-Alaska) and Ranking Member Senator Joe Manchin (D-W. Va.). Senators Murkowski and Manchin offered a substitute amendment featuring the full text of the AEIA (Amendment 1407) after the motion to proceed was voted-out affirmatively, and they are acting as floor managers for the bill.

Among other things, the bill focuses on advancements and development of energy storage and hydropower resources. In particular, as described in greater detail below, the bill directs FERC to initiate a rulemaking on cost recovery for energy storage assets and extends authorization for certain incentives to develop generation at non-powered or already-powered dams. The Committee held approximately 12 months of hearings on many of the proposed legislation’s components. If enacted, the bill would constitute the first major piece of national energy legislation since the Energy Policy Act of 2005, after a twelve-year hiatus in significant congressional activity. Continue Reading Bipartisan American Energy Innovation Act Being Considered on Floor of U.S. Senate

On Monday, March 2, FERC staff issued three virtually identical orders extending the license terms for 20 hydroelectric projects along the Wisconsin River that have licenses set to expire between 2026 and 2035, to align their license expiration dates and better coordinate the FERC relicensing process.  The three orders each address licenses for projects located in certain sub-basins of the Wisconsin River: the northern sub-basin, which includes eight projects; the central sub-basin, which includes 10 projects, and the southern sub-basin, which includes two projects. Continue Reading FERC Grants Extension of Hydropower License Terms

On February 21, 2020, FERC issued an order accepting ISO New England Inc.’s (“ISO-NE”) November 5, 2019 informational filing about the parameters of its fourteenth Forward Capacity Auction (“FCA 14”) for the 2023-24 Capacity Commitment Period (“Informational Filing”).  In so doing, FERC rejected arguments from ISO-NE’s External Market Monitor and others that ISO-NE over-mitigated the bids of various energy storage resources by relying on improper assumptions and historical data. FERC’s order sparked a dissent from Commissioner Richard Glick.

Continue Reading FERC Accepts ISO-NE’s Informational Filing Regarding FCA 14

On February 27, 2020, FERC accepted a compliance filing from PJM Interconnection, L.L.C. (“PJM”) that proposed identical revisions to Attachment K of the PJM Tariff and Schedule 1 of the PJM Operating Agreement, finding that the revisions met the requirements of Opinion No. 566, issued August 26, 2019. In accepting PJM’s compliance filing, FERC found that the PJM Tariff now includes greater transparency regarding the process used to evaluate requests to build network upgrades in order to obtain Incremental Auction Revenue Rights (“IARRs”). Continue Reading FERC Accepts Revisions to PJM’s Tariff Regarding Incremental Auction Revenue Right Study Process

On February 12, 2020, the U.S. International Trade Commission (“ITC”) issued a notice stating that it will investigate and report on the potential economic effects of renewable energy commitments, including the role of renewable energy imports, in Massachusetts and the broader New England region as requested by the Committee on Ways and Means of the U.S. House of Representatives (“Committee”). The ITC intends to send the report to the Committee by January 25, 2021. Continue Reading U.S. International Trade Commission to Investigate Impacts of Renewable Energy Imports in New England

On February 14, 2020, FERC rejected ISO New England Inc.’s (“ISO-NE”) and the New England Power Pool Participants Committee’s (together with ISO-NE, the “Filing Parties”) proposed revisions to the ISO-NE tariff intended to allow for the termination of ISO-NE’s Fuel Security Reliability Retention Mechanism (“Fuel Security Mechanism”) at the end of Forward Capacity Auction (“FCA”) 14 – one year earlier than currently provided in the tariff. The Fuel Security Mechanism allows ISO-NE to retain resources for fuel security that seek to retire in FCAs 13, 14, or 15 and was initially implemented following ISO-NE’s 2018 petition for waiver seeking to retain two retiring Mystic Units through FCA 15 (“Mystic Units”). FERC rejected the filing because ISO-NE had not yet submitted its proposed long-term solutions to address fuel security concerns and because it found that that ISO-NE’s proposed interim solutions were inadequate. FERC Commissioner Richard Glick dissented from the order, arguing the majority lacked a reasoned basis to find that ISO-NE’s filing was not just and reasonable. Continue Reading FERC Rejects ISO-NE’s Proposed Early Sunsetting Revisions to Fuel Security Mechanism