On December 15, 2016, the Federal Energy Regulatory Commission (FERC) issued a Notice of Proposed Rulemaking (NOPR) in Docket No. RM17-3-000 regarding fast-start resources operating in markets run by independent system operators (ISOs) and regional transmission organizations (RTOs). Specifically, the NOPR addresses the manner in which ISOs and RTOs should incorporate offers from fast start-resources into their Day Ahead and Real Time energy prices. FERC claims that these efforts are another step to improve price formation in wholesale electricity markets. Continue Reading FERC Issues Fast-Start Resources NOPR

On June 21, 2016, the Federal Energy Regulatory Commission (FERC or Commission) issued three orders related to the North American Electric Reliability Corporation’s (NERC) critical infrastructure protection reliability standards (CIP reliability standards). The Commission issued a final rule directing NERC to develop a new or modified reliability standard, an Order Denying Rehearing and a Notice of Inquiry. Continue Reading FERC Issues Orders Concerning NERC Critical Infrastructure Protection Reliability Standards

On July 21, 2016, the Federal Energy Regulatory Commission (FERC) issued a Notice of Proposed Rulemaking (NOPR) in Docket No. RM16-17-000 to revise regulations regarding the collection of data for analytics and surveillance purposes from market-based rates (MBR) sellers and entities trading virtual products or holding financial transmission rights (Virtual/FTR Participants). FERC also withdrew two earlier NOPRs in Docket Nos. RM15-23-000 and RM16-3-000. FERC indicated that the newly-issued NOPR would address many of the issues in the withdrawn NOPRs. Continue Reading FERC Issues NOPR on Information Collection, Rescinds Previous Iterations of Rule

On April 4, 2016, the U.S. Commodity Futures Trading Commission (CFTC) announced that it had unanimously approved proposed guidance regarding the appropriate treatment of certain electric power and natural gas contracts under the definition of the term “swap.” Continue Reading CFTC and SEC Approves Proposed Guidance on Regulatory Treatment of Certain Electric Power and Natural Gas Contracts

Last week, the Federal Energy Regulatory Commission issued a Notice of Inquiry (NOI) seeking comment on the need for reforms regarding the provision of and compensation for primary frequency response. The NOI notes that fewer generation resources may currently be providing primary frequency response than in the past. The Commission expects this trend to continue as more Variable Energy Resources (VER), such as solar or wind generators, are integrated into the nation’s electric grid. As the Commission explained, the NOI is necessary due to the significance of primary frequency response to the reliable operation of the electric grid. Continue Reading FERC Issues a Notice of Inquiry on Primary Frequency Response

On November 19, 2015 the Federal Energy Regulatory Commission (Commission) issued a proposal titled “Reactive Power Requirements for Non-Synchronous Generation.” In this proposal, the Commission proposes to revise standard generator interconnection agreements (GIAs) to eliminate the exemptions for non-synchronous generation, including wind generators, from the requirement to provide reactive power. Continue Reading FERC Issues Proposal to Require Wind Generators to Provide Reactive Power

This updates our September 28, 2015 report on FERC’s NOPR to require “market participants” in RTO and ISO organized electricity markets to obtain a Legal Entity Identifier (LEI), an alpha-numeric identifier issued through the Global LEI System, and to provide information regarding their “Connected Entities” to the RTO/ISO in which they operate.

Our September 28 report contains a detailed description of the NOPR.  To briefly recapitulate, the NOPR defines a market participant as any seller or buyer of services offered in those markets.  Continue Reading Update on FERC Notice of Proposed Rulemaking (NOPR) Regarding RTO/ISO Collection of Uniform Organized Market Participant Data

Introduction

FERC’s September 17, 2015 notice of proposed rulemaking (NOPR) in Docket No. RM15-23-000 would impose significant information-gathering requirements on participants in markets operated by Regional Transmission Organizations (RTOs) and Independent System Operators (ISOs). The rule would require each market participant to obtain a Legal Entity Identifier (LEI) and to report its LEI and extensive additional information about itself and its Connected Entities to its RTO/ISO who would submit it to FERC. FERC has designed the information requirement, which applies on a regular ongoing basis and must be updated as facts and circumstances change, to reveal direct as well as indirect, third party links between market participants that could afford the incentive and ability to engage in joint action to manipulate and defraud the markets. Continue Reading FERC Issues Notice of Proposed Rulemaking (NOPR) Regarding RTO/ISO Collection of Uniform Organized Market Participant Data

On September 17, 2015, FERC issued a notice of proposed rulemaking (NOPR) regarding settlement intervals and shortage pricing in regional transmission organization (RTO) and independent system operator (ISO) real time electricity markets. The NOPR states FERC’s preliminary finding that RTO/ISO real time use of different time intervals for the dispatch (e.g., five minutes) and the settlement (e.g., one hour) of energy and operating reserve transactions is unjust, unreasonable and unlawful. FERC proposes to require that all RTOs/ISOs use the same time interval for the settlement and dispatch of these transactions. Continue Reading FERC Issues Notice of Proposed Rulemaking Regarding RTO/ISO Pricing Formation