Category Archives: Electric

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FERC Issues Fast-Start Resources NOPR

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 … Continue Reading

FERC Issues Orders Concerning NERC Critical Infrastructure Protection Reliability Standards

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 … Continue Reading

FERC Issues NOPR on Information Collection, Rescinds Previous Iterations of Rule

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 … Continue Reading

FERC Issues a Notice of Inquiry on Primary Frequency Response

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 … Continue Reading

FERC Issues Proposal to Require Wind Generators to Provide Reactive Power

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

Update on FERC Notice of Proposed Rulemaking (NOPR) Regarding RTO/ISO Collection of Uniform Organized Market Participant Data

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 … Continue Reading

FERC Issues 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 … Continue Reading

FERC Issues Notice of Proposed Rulemaking Regarding RTO/ISO Pricing Formation

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 … Continue Reading

Clean Power Plan: EPA Issues Final Carbon Reduction Rule for Existing Stationary Sources

On August 3, 2015, the United States Environmental Protection Agency (EPA) released the final version of the Existing Source Performance Standards (ESPS) component of the Obama Administration’s Clean Power Plan (CPP), setting the first-ever carbon dioxide emission reduction goals for States. Environmental Protection Agency, Carbon Pollution Emission Guidelines for Existing Stationary Sources, 40 CFR Part … Continue Reading

D.C. Circuit Issues Opinion on Jurisdiction Under Section 210 of PURPA

On December 2, 2014, the D.C. Circuit issued its decision in Midland Power Cooperative and National Rural Electric Cooperative Association v. Federal Energy Regulatory Commission, No. 13-1184, finding that it does not have jurisdiction to review Federal Energy Regulatory Commission (FERC) decisions under Section 210 of the Public Utility Regulatory Policies Act of 1978 (PURPA). … Continue Reading

FERC Approves Fourth Settlement for 2011 Southwest Blackout Against Western Area Power Administration

On November 24, 2014, FERC approved a settlement with Western Area Power Administration – Desert Southwest Region  (Western-DSW) related to its involvement in the blackout in the southwestern U.S. on September  8, 2011.  This blackout left more than 5 million people in Southern California, Arizona, and Baja California, Mexico without power for up to 12 … Continue Reading

FERC Orders RTOs and ISOs to Report on Fuel Assurance

On November 20, 2014, FERC issued an order requiring regional transmission operators (RTOs) and independent system operators (ISOs) to file reports describing their efforts with respect to fuel assurance. The order defines “fuel assurance” as involving generator access to fuel supplies and the firmness of generators’ fuel arrangements and notes that lack of fuel assurance … Continue Reading

FERC Approves Integration of Western Area Power Administration, Basin Electric Power Cooperative and Heartland Consumers Power District into SPP

In a groundbreaking order that will have implications for the Federal Government’s participation in organized energy markets, the Federal Energy Regulatory Commission (FERC) issued an order in Docket No. ER14-2850-000 on November 10, 2014 approving numerous proposed revisions to Southwest Power Pool’s (SPP) Open Access Transmission Tariff, Bylaws and Membership Agreement that provide for Western-Upper … Continue Reading

D.C. Circuit Orders USEPA to Respond to Petition to Stop Carbon Rulemaking

Murray Energy Corp. Suit Allowed to Proceed Upon publication of the proposed “Carbon Pollution Emission Guidelines for Existing Stationary Sources: Electric Generating Units” (also referred to as the Proposal or Clean Power Plan), on June 18, 2014, Murray Energy Corp. filed a petition for writ of extraordinary relief, alleging that the United States Environmental Protection … Continue Reading

FERC Approves ISO-NE Winter Reliability Program for 2014-15, Requires Stakeholder Discussions to Address Future Reliability Concerns

FERC recently issued an order approving ISO-New England’s 2014-15 Winter Reliability Program, but ordered ISO-NE to commence stakeholder discussions by January, 2015, to develop a longer term solution to reliability problems in the region. (  ISO-NE’s Winter Reliability Program is designed to ensure electric system reliability during the winter months through out-of-market payments to generators … Continue Reading

Seventh Circuit Remands FERC for the Second Time on Cost Allocation for High-Voltage Transmission Lines in PJM

In a split decision issued on June 25, 2014, the U.S. Court of Appeals for the Seventh Circuit remanded a Federal Energy Regulatory Commission (“FERC”) order allocating costs for certain new high-voltage network transmission lines within PJM Interconnection, L.L.C. (“PJM”).  In 2009, the Court previously remanded a FERC order in the same case in Illinois … Continue Reading

FERC Approves First Settlement Stemming from the September 2011 Southwest Blackout Inquiry

Agreement with Arizona Public Service Company Suggests More to Come Background On July 7, 2014, the Federal Energy Regulatory Commission (FERC) issued the first, but likely not the last, Enforcement Order addressing the events of the September 8, 2011 Southwest Regional Blackout.  As described by the Commission in its new release, “[t]he agreement marks the … Continue Reading

Despite Customer Opposition, FERC Accepts CAISO’s Proposed Entergy Imbalance Market for the Western Interconnection and PacifiCorp’s Proposal To Be the EIM’s First Participant

On June 18, 2014, FERC issued an order conditionally accepting California Independent System Operator Corporation’s (CAISO) proposal to implement an Energy Imbalance Market (EIM).  The EIM tariff would allow neighboring balancing authorities to participate in CAISO’s real-time market to buy and sell five-minute real-time energy to meet energy imbalance needs.  Participation in the EIM is … Continue Reading

Return on Equity: After Several Years of Uncertainty, FERC Takes Action

On June 19, 2014, at its Open Meeting, the Federal Energy Regulatory Commission (FERC or Commission) adopted a new methodology for determining the rate of return on equity (ROE) for FERC-jurisdictional electric utilities, and applied this new methodology in a pending complaint case involving the New England transmission owners. The Commission also set for hearing … Continue Reading

FERC Order 745 Vacated by the Court Of Appeals, FERC to Seek En Banc Review of the Decision

June 13, 2014.  The Court of Appeals for the District of Columbia Circuit (Court), in a 2 to 1 decision in Electric Power Supply Ass’n v. FERC et al.,[1] vacated the Federal Energy Regulatory Commission’s (FERC) Order 745 in its entirety on May 23, 2014.  Order 745 standardized compensation paid to demand response providers in … Continue Reading

CFTC Proposal Would Expand Hedging Choices For Government-Owned Utilities

On June 2, 2014, the Commodity Futures Trading Commission (CFTC) published in the Federal Register a notice of a proposed amendment to the de minimis exception from the definition of “swap dealer” with respect to certain swaps entered into with government-owned utilities.  As explained below, the adoption of this proposal would expand the number of … Continue Reading

Duke v. PJM: How Gas-Electric Coordination Issues Arise in a Real World Situation

This is the first in a series of articles highlighting the economic and operational issues raised by the interdependency of the natural gas and electric markets.  This post analyzes a recent complaint filed by Duke Energy Corporation (Duke) against PJM Interconnection, LLC (PJM) in FERC Docket No. EL14-45.   The complaint involves generating units owned by … Continue Reading