On June 26, 2025, FERC upheld PJM Interconnection, L.L.C.’s (PJM) proposal to revise its Capacity Performance Quantifiable Risk (CPQR) Offer Cap. Several public interest organizations and PJM’s Independent Market Monitor (Market Monitor) filed requests for rehearing, arguing that PJM’s tariff changes did not adequately differentiate between costs directly related to capacity commitments and those incurred for other reasons, potentially leading to unfair rates. FERC disagreed, stating that PJM’s definition of CPQR provides a clear principle for identifying relevant costs and prevents sellers from inflating offer caps with unrelated expenses. The Commission emphasized that the review process by PJM and the Market Monitor ensures adherence to this principle, maintaining fair and competitive market practices.

On June 20, 2025, FERC approved Southwest Power Pool, Inc.’s (SPP) revisions to its Western Energy Imbalance Service (WEIS) tariff to allow a participating balancing authority to initiate a market hold due to reliability concerns and to specify how SPP will settle the market in the event of such a market hold. FERC found that the revisions will allow participating balancing authorities to timely respond to reliability-based events while avoiding disruptions to the WEIS market.

On June 18, 2025, FERC temporarily raised the cost limits for blanket certificate natural gas pipeline projects constructed and placed into service by May 31, 2027, from $41 million to $61.65 million. Citing what it called a pressing nationwide near-term demand for expanded natural gas transportation capacity and reliability concerns…

On May 27, 2025, FERC addressed arguments raised on rehearing of a January 30, 2025 order, which accepted the Midcontinent Independent System Operator, Inc.’s (“MISO”) proposal to modify its generator interconnection study process by implementing a queue cap and exemptions to that cap (the “Queue Cap Order”). In doing so, FERC reaffirmed that MISO’s proposed queue cap and exemptions align with Order No. 2003’s independent entity variations for regional transmission organizations and independent system operators.

On May 22, 2025, the U.S. Court of Appeals for the Fifth Circuit (“Fifth Circuit”) addressed a dispute between ANR Pipeline Company (“ANR”) and FERC. The case centered on the interpretation of ANR’s tariff and whether it required shippers to deliver and take gas simultaneously, even for short-notice shipments. The Fifth Circuit denied ANR Pipeline Company’s petition for review, affirming FERC’s decision that ANR’s tariff did not require simultaneous delivery for short-notice shipments. The court found the tariff ambiguous and emphasized ANR’s longstanding practice of not requiring simultaneous delivery, which supported FERC’s position.

On May 23, 2025, FERC upheld on rehearing its prior orders authorizing Venture Global CP2 LNG, LLC to build a new liquified natural gas (“LNG”) export terminal (“CP2 LNG Terminal”) and granting Venture Global CP Express, LLC (together, with Venture Global CP2 LNG, LLC, “Venture Global”) a certificate of public convenience and necessity (“CPCN”) to construct and operate a new natural gas pipeline (“CP Express Pipeline,” together, with the CP2 LNG Terminal, the “Projects”) to connect the CP2 LNG Terminal to the existing natural gas pipeline grid (“May 23 Rehearing Order”). In its May 23 Rehearing Order, FERC continued to find that the Projects are environmentally acceptable actions and not inconsistent with the public interest.

On May 29, the Supreme Court issued a unanimous opinion in Seven County Infrastructure Coalition v. Eagle County, Colorado that dramatically changes the way courts scrutinize federal agencies’ environmental reviews under the National Environmental Policy Act (NEPA). Justice Brett Kavanaugh, writing for a five-justice conservative majority (with Justice Neil Gorsuch abstaining), held that (a) courts must afford federal agencies “substantial judicial deference” regarding both the scope and contents of their environmental analyses; and (b) courts do not need to consider the effects of the action to the extent they are “separate in time or place” from the proposed project. The ruling gives federal agencies permission to greatly streamline their NEPA analyses at a time when those agencies are rapidly being drained of their resources and facing increasing pressure to expedite lengthy permitting processes.

In this episode, guest hosts Dan Anziska and Coby Beck join Bill Derasmo for an interview with Danielle Spalding, vice president of communications and public affairs at Cirba Solutions. Spalding discusses the importance of battery recycling and building a strong battery supply chain, highlighting the growing demand for energy storage. The group explores the incentives available in the U.S. to support domestic battery manufacturing and recycling, including the Bipartisan Infrastructure Law, the Inflation Reduction Act, and various tax credits and tariffs. Listen in to hear more about Cirba Solutions’ commitment to supporting sustainable battery infrastructure.

The U.S. Court of Appeals for the D.C. Circuit on May 16, 2025, clarified the conditions under which a state waives its Clean Water Act (CWA) Section 401 water quality certification (WQC) authority. In Village of Morrisville v. Federal Energy Regulatory Commission, the D.C. Circuit rejected arguments by a hydropower licensee that Vermont waived its certification authority under Section 401 by failing to issue a WQC within one year from receipt of a certification request. The applicant unilaterally withdrew and refiled its WQC application twice in an effort to avoid unfavorable certification conditions. Because the applicant withdrew its WQC application to further its own interests, the court held that the applicant could not claim that Vermont waived its Section 401 conditioning authority by not issuing a WQC within a year from the original application.

On May 15, 2025, the FERC’s Office of Energy Policy and Innovation, in coordination with the Office of Electric Reliability, released their 2025 Summer Energy Market and Electric Reliability Assessment, highlighting key industry insights and challenges for the upcoming summer season, measured from June through September 2025. The report anticipates higher-than-average temperatures across the continental United States, coupled with increased uncertainty from extreme weather events. Load is projected to be higher than in the past four summers, leading to noticeably higher wholesale electricity prices across most regions. Despite these challenges, the North American Electric Reliability Corporation forecasts that all regions will have adequate generating resources to meet expected demand under normal conditions. However, certain areas may face tight generation availability during periods of above-normal electricity demand, low wind and solar output, and wide-area heat events, necessitating operational mitigations to maintain reliability. Overall, the report calls for careful monitoring and management of the electric grid to address these challenges and maintain reliability throughout the summer.