On April 19, 2017, the U.S. Court of Appeals for the D.C. Circuit unanimously upheld the Federal Energy Regulatory Commission’s (FERC) implementation of Order No. 1000 with respect to ISO-New England (ISO-NE). The D.C. Circuit had previously upheld the legality of the order itself in 2014, and the Seventh Circuit upheld FERC’s implementation of Midcontinent Independent System Operator Inc.’s Order No. 1000 compliance plan in 2016. This week’s decision represents another success for FERC and its Order No. 1000 policy objectives. Continue Reading FERC Prevails Again in Order No. 1000 Appellate Proceedings

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 FERC indicated that the newly-issued NOPR would address many of the issues in the withdrawn NOPRs.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 May 19, 2016, the Federal Energy Regulatory Commission (FERC or Commission) issued a Final Policy Statement clarifying FERC’s implementation of hold harmless commitments in Federal Power Act (FPA) Section 203 applications seeking change of control authorization. The Final Policy Statement largely tracks a Proposed Policy Statement that was issued in January of 2015.

For FERC approval under Section 203, a transaction must be “consistent with the public interest.” The Commission considers three factors in determining whether a transaction meets this requirement: the effect of the transaction on (1) competition; (2) rates; and (3) regulation. The Policy Statement relates to the second prong of FERC’s analysis (the effect on rates). Continue Reading FERC Issues Policy Statement Clarifying Hold Harmless Commitments Under FPA § 203

A slowly developing renewable fuels market, several well-publicized fraud cases, and EPA’s delayed volumetric designations that frustrated industry participants have led EPA and the CFTC to a new era of cooperation. On March 17, 2016, the Commodity Futures Trading Commission (CFTC) and the Environmental Protection Agency (EPA) announced that they would share Renewable Fuel Standard data and analysis pursuant to a Memorandum of Understanding (MOU). Under the MOU, the CFTC and EPA can share information and conduct joint or separate investigations into potential fraud, market abuse, deceptive practices, commodity market manipulation, or other violations relating to the generation of, and trading in, Renewable Identification Numbers (RINs). Continue Reading CFTC and EPA sign Memorandum of Understanding on Renewable Fuel Markets

The Federal Energy Regulatory Commission (FERC) has issued a Notice of Proposed Rulemaking (NOPR) to revise its pro forma Small Generator Interconnection Agreement (SGIA). The new rule would require small generators (those that are 20 MW or less) to “ride through” through or to stay connected to and synchronized with the transmission system during a system disturbance. Continue Reading Small Generators May Soon Be Required to “Ride Through” System Disturbances

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

Since the issuance of Order No. 697-A, FERC has required market based rate sellers to include a comprehensive description of all upstream owners. In its latest notice of proposed rulemaking, FERC recognizes that the level of upstream ownership related detail currently required is not essential to a determination of the seller’s market power. FERC also points out the difficulty that many sellers face in accurately capturing and describing all upstream owners given the often numerous and types of ownership interests (e.g., full versus partial, passive versus controlling, direct versus indirect, etc.). Continue Reading FERC Proposes to Ease Reporting Obligations for Market Based Rate Sellers