A group of 17 states, through their Attorneys General (“State AGs”), filed a motion (“Motion”) on May 10, 2023, requesting that the Commission audit and investigate whether BlackRock is acting as an “activist” investor, thereby violating Section 203 of the Federal Power Act (“FPA”) and the Commission’s latest reauthorizations for BlackRock to acquire public utility securities. The Motion comes shortly after Commissioners Danly and Christie issued a joint statement regarding a different investment company, Vanguard Group, Inc. (“Vanguard”), questioning whether Vanguard’s “enormous accumulation” of utility assets may enable it to exercise “profound control” over those utilities.
Continue Reading State Attorneys General Argue BlackRock is Violating its FERC Blanket AuthorizationD.C. Circuit Upholds FERC’s NEPA Review of Alaskan LNG Project
By S. Jennifer Panahi & Mary-Kate Rigney on
On May 16, 2023, the United States Court of Appeals for the District of Columbia Circuit (“D.C. Circuit”) issued an opinion in Center for Biological Diversity v. Alaska Gasline Development Corporation, affirming FERC’s authorization for Alaska Gasline Development Corporation (“AGDC”) to construct and operate liquified natural gas (“LNG”) facilities in Alaska’s North Slope region (“Project”).
Continue Reading D.C. Circuit Upholds FERC’s NEPA Review of Alaskan LNG ProjectDivided FERC Announces Hands-Off Approach to Capacity Issues in SPP, Raises Questions About Tariff Detail Complaints
By Steven G. Boughton on
Posted in FERC Practice
On May 3, 2023, a divided FERC voted 3-1 to deny a widely-supported complaint by multiple utilities in the Southwest Power Pool (“SPP”) region arguing that the absence of the new 15% generation Planning Reserve Margin (“Reserve Margin”) from the SPP tariff rendered that tariff unjust and unreasonable. The Reserve Margin dictates exactly how much electric generating capacity load-serving utilities must own or have under contract to serve customers. The complaining utilities argued that customers in SPP could be harmed by the costs associated with the rapid increase in the Reserve Margin with little corresponding reliability benefit and asked FERC to keep closer tabs on the process. The utilities’ request for additional FERC oversight was opposed only by SPP itself. As a result of the decision, SPP is free to change the Reserve Margin without any oversight by FERC or approval by a single state commission. FERC further held that a complaint alleging that a key rate is missing from a tariff in violation of section 205 of the Federal Power Act and the Commission’s Rule of Reason fails to state a claim upon which relief could be granted.
Continue Reading Divided FERC Announces Hands-Off Approach to Capacity Issues in SPP, Raises Questions About Tariff Detail ComplaintsFERC Commissioners Answer to Senate Committee on Fleet Transformation and Other Pressing Issues
By Sahara Shrestha & Elizabeth McCormick on
On May 4, 2023, the Senate Energy and Natural Resources Committee hosted all four FERC Commissioners for an oversight hearing to focus on reliability in the face of (1) cyber-attacks, (2) coal and natural gas plant retirements, (3) severe weather, and (4) subsidies, climate policies, and market signals that encourage more intermittent resources to come online.
Continue Reading FERC Commissioners Answer to Senate Committee on Fleet Transformation and Other Pressing IssuesHouse Republicans Press FERC on Environmental Review Issues
By Juan Dawson & Elizabeth McCormick on
On March 3, 2023, the House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-WA) and Energy, Climate Change, and Grid Security Subcommittee Chair Jeff Duncan (R-SC) sent a letter to Acting FERC Chairman Willie Phillips and Commissioners asking the Commission to respond to a series of questions related to FERC’s authority as it relates to two policy statements issued in February 2022 and a Notice of Proposed Rulemaking (“NOPR”) issued in December 2022. The two policy statements concern Greenhouse Gas (“GHG”) emissions of natural gas infrastructure projects (see February 18, 2022 Troutman Pepper Insights; February 23, 2022 edition of the WER). The NOPR would require applicants proposing to build electric transmission infrastructure to prepare Environmental Justice Public Engagement Plans.
Continue Reading House Republicans Press FERC on Environmental Review IssuesBiden Issues Executive Order Increasing Agency Requirements on Environmental Justice
By Sahara Shrestha & Elizabeth McCormick on
On April 21, 2023, the President Biden issued an “Executive Order on Revitalizing Our Nation’s Commitment to Environmental Justice for All.” The new Executive Order provides that “each [federal] agency should make achieving environmental justice part of its mission.” To that end, it provides that agencies shall:
Continue Reading Biden Issues Executive Order Increasing Agency Requirements on Environmental JusticeTaking Charge: Inside the U.S. Battery Boom
Posted in Battery/Storage
In response to the transformational Inflation Reduction Act, Troutman Pepper has launched Taking Charge: Inside the U.S. Battery Boom, an in-depth report examining the accelerated growth in the U.S. battery storage sector.
We look at how the legislation is creating both opportunity and complexity, as businesses develop and adapt their strategies to navigate the industry’s substantial growth potential, as well as offering a summary of leading trends as we consider the future.
FERC Addresses Social Cost of Carbon and Environmental Justice Analysis on Remand
By Antonia Douglas & Mary-Kate Rigney on
Posted in FERC Practice, Natural Gas
On remand from the United States Court of Appeals for the District of Columbia Circuit (“D.C. Circuit”), FERC reaffirmed that Rio Grande LNG, LLC’s proposed liquified natural gas (“LNG”) terminal project (“Rio Grande LNG Terminal”) was not inconsistent with the public interest, and that the Rio Bravo Pipeline Company, LLC’s proposed pipeline project (“Rio Bravo Pipeline Project”), as amended, was required by the public convenience and necessity. In doing so, FERC addressed a variety of highly-contested issues, including whether it must apply the social cost of carbon and expand its prior environmental justice analysis. Chairman Phillips concurred, and Commissioner Clements dissented from FERC’s decision.
Continue Reading FERC Addresses Social Cost of Carbon and Environmental Justice Analysis on RemandFERC to Convene Forum on PJM Capacity Market
By Quintessa Davis & Elizabeth McCormick on
Posted in FERC Practice, Market Policy
On April 19, 2023, FERC announced it would hold a forum to discuss the PJM Interconnection, L.L.C. (“PJM”) capacity market. The Commissioner-led forum is scheduled for Thursday, June 15, 2023. There will be three panels to discuss the current state of the PJM capacity market, potential improvements, and related proposals to address resource adequacy.
Continue Reading FERC to Convene Forum on PJM Capacity MarketFERC Confirms that Orders Under Sections 210 and 211 of the Federal Power Act Would Not Generally Confer “Public Utility” Jurisdiction over Puerto Rico’s Electric Utilities
Posted in FERC Practice, Transmission
On March 16, 2023, FERC granted a petition declaring that, should it issue orders pursuant to Sections 210 and 211 of the Federal Power Act (“FPA”), which would be required for a prospective project to interconnect Puerto Rico’s transmission system to the U.S. mainland bulk electric system, such orders would “not render Puerto Rico’s electric utilities ‘public utilities’ under section 201(e) of the FPA. However, FERC reserved the right to make a fact-specific determination at the time any application for such interconnection is sought and further affirmed that, regardless of “public utility” status, FERC would retain jurisdiction over Puerto Rico’s electric utilities pursuant to sections 210, 211, 211A, 212, and 215 of the FPA.
Continue Reading FERC Confirms that Orders Under Sections 210 and 211 of the Federal Power Act Would Not Generally Confer “Public Utility” Jurisdiction over Puerto Rico’s Electric Utilities