On September 10, 2026, FERC approved a new version of a Reliability Standard proposed by the North American Electric Reliability Corporation (NERC), Reliability Standard CIP-014-4 (CIP-014-4) (Physical Security). The original version, CIP-014-1, was approved by Order No. 802 in November 2014. The stated purpose of the currently effective version of the standard is to “identify and protect Transmission stations and Transmission substations (transmission facilities), and their associated primary control centers, that if rendered inoperable or damaged as a result of physical attack could result in instability, uncontrolled separation, or Cascading within and Interconnection.” NERC explained in its petition that the new version of CIP-014 is intended to ensure an adequate and consistent approach for evaluating instability and identifying infrastructure that is critical to the operation of the Bulk Power System.
FERC Approves Changes to ISO-NE’s Day-Ahead Ancillary Services Market
On September 14, 2026, FERC approved changes to ISO New England Inc.’s (ISO-NE) Day-Ahead Ancillary Services (DA A/S) market to reduce costs and improve efficiency. The market incurred more than $900 million in costs during its first year, and ISO-NE estimates the revisions will save approximately $23 million annually. FERC’s approval of ISO-NE’s proposal will adjust how ISO-NE forecasts next-day energy needs and set a new floor on the price at which resources become financially exposed for failing to perform. The revisions take effect on October 22, 2026.
D.C. Circuit Rejects Pipeline Customers’ Due Process Challenge to FERC Certificate Order
On August 28, 2026, the United States Court of Appeals for the District of Columbia Circuit (D.C. Circuit) denied petitions for review of FERC’s certification of East Tennessee Natural Gas, LLC’s (East Tennessee) System Alignment Program (Project). The D.C. Circuit held that FERC did not violate customers’ due process rights…
FERC Approves Dual Transmission Rate Incentives for Empire District’s $800 Million SPP Transmission Portfolio
On August 31, 2026, FERC granted The Empire District Electric Company (Empire District) two transmission rate incentives for its portfolio of electric transmission projects in the Southwest Power Pool, Inc. (SPP) region (SPP Project Portfolio): (1) Abandoned Plant Incentive; and (2) construction work in progress (CWIP) Incentive. The Abandoned Plant Incentive will allow Empire District to recover 100% of prudently incurred costs for any SPP Project Portfolio component cancelled or abandoned for reasons beyond its control. The CWIP Incentive will allow Empire District to include 100% of prudently incurred CWIP costs in rate base during the development and construction phase of the SPP Project Portfolio.
FERC Requires MBR Applicant to Adopt Affiliate’s Mitigation Measures
On August 28, 2026, FERC granted Hillsboro Solar, LLC’s (Hillsboro) authorization to make wholesale sales of electric energy, capacity, and ancillary services at market-based rates (MBR) on the condition that Hillsboro adopt the same market power mitigation as Hillsboro’s affiliate, Duke Energy Florida, LLC (Duke Energy Florida) in certain balancing authority areas (BAAs). In doing so, FERC emphasized that long-standing Commission precedent requires an MBR seller to include the same market power mitigation as any mitigated affiliate in its tariff in order to obtain MBR authority.
Pass the Salt: A Sodium-Iron Battery Breakthrough
Host Bill Derasmo is joined by founder and CEO Antonio Baclig of Inlyte Energy. Baclig was recently featured in a Wall Street Journal article highlighting Inlyte’s sodium-iron battery technology, and announced the company’s first battery pack delivery to an energy storage facility in Alabama. Listen in to learn how Inlyte is replacing traditional nickel with iron to drive down costs, achieving superior footprint energy density for grid-scale and data center applications, and positioning for domestic manufacturing growth with the help of battery tax incentives.
FERC Modifies Bear Swamp Hydropower License Condition Governing Whitewater Releases to Address Grid Reliability Concerns
On May 13, 2026, FERC granted rehearing, in part, of its November 26, 2025 order issuing a new license to Bear Swamp Power Company, LLC (Bear Swamp) for its 676 megawatt (MW) Bear Swamp Hydroelectric Project (Project) on the Deerfield River in Berkshire and Franklin Counties, Massachusetts. FERC’s order addressed Bear Swamp’s rehearing request challenging license Article 403(2), which required maintenance of impoundment elevations between 830 and 835 feet from 10 a.m. to 12 p.m. on certain days per year to support whitewater boating. In its rehearing order, FERC revised license Article 403(2) to clarify that Bear Swamp would not be in violation of its license for deviating from the impoundment elevation requirements when doing so at ISO-NE’s direction to maintain grid reliability.
FERC Streamlines Reviews to Expedite Actions at Hydropower Projects
On July 16, 2026, the Federal Energy Regulatory Commission (FERC or Commission) unanimously approved measures in two orders streamlining its National Environmental Policy Act (NEPA) review procedures for certain hydropower-related actions with minimal environmental impacts. In the first order, FERC issued a final rule that expands an existing Categorical Exclusion (CE)—a designation that allows an agency to skip preparing a detailed environmental review document—to cover Commission-initiated terminations and revocations of hydropower licenses and exemptions where there will be little to no ground disturbance and little to no change in reservoir conditions or downstream water flows. In the second order, FERC adopted two recreation-related CEs implemented by Tennessee Valley Authority (TVA) that will allow FERC to skip detailed environmental review when authorizing small-scale recreation facility improvements, such as trails, fishing access sites, campgrounds, and parking areas, at FERC-licensed hydropower projects.
In her comments on the orders at the Commission’s July 16 open meeting, Chairman Swett stated that the Commission “must move important approvals forward quickly while ensuring we fully meet our NEPA obligations. Today’s actions are practical, common-sense solutions that streamline our hydropower environmental review process and allow us to better focus our efforts on reviewing large-scale projects.”
FERC Directs Joint CAISO-SPP Report on Coordination of Operations at Seams
On July 16, 2026, FERC issued an order directing California Independent System Operator Corporation (CAISO) and Southwest Power Pool, Inc. (SPP) to submit a joint report by September 30, 2026, on their efforts to coordinate operations along Western market seams. FERC specifically requests that CAISO and SPP: 1) provide details on efforts to date to address seams and market coordination, 2) identify seams and market coordination issues created by the development of organized markets in the West, 3) provide a plan for addressing identified issues, and 4) identify areas where market operators are not aligned on next steps.
FERC Directs NERC to Submit Rules Addressing Risks Associated with Integration of Computational Loads into Bulk Power System
On July 16, 2026, FERC directed the North American Electric Reliability Corporation (NERC) to file new or modified Reliability Standards to address reliability risks to the Bulk Power System associated with the integration of computational loads, revise its Rules of Procedure necessary for registration of computational load entities, and submit…