On October 24, 2014, FERC dismissed requests for rehearing on the notice placing the ISO New England Inc.’s (“ISO-NE”) eighth annual Forward Capacity Auction (“FCA”) results into effect (“FCA Notice”). FERC ruled that because the results of the auction took effect by operation of law, rather than a FERC-issued order, there was no order to rehear.
ISO-NE’s FCA results were allowed to take effect when a divided FERC was unable to reach a majority decision regarding whether to accept or reject the results of the FCA (see September 22, 2014 edition of the WER). As a result of that stalemate, and the subsequent 60 day inaction period by FERC, the results became effective pursuant to section 205 of the Federal Power Act (“FPA”). Accordingly, FERC issued the FCA Notice, announcing that the ISO-NE’s FCA results became effective by operation of law. Subsequently, two parties filed requests for rehearing of the FCA Notice, requesting that FERC reconsider allowing the FCA results to become effective by operation of law.
In its notice of dismissal, FERC noted that under section 313a of the FPA, any person aggrieved by an order issued by FERC may request rehearing of that order. However, FERC stated that because the FCA results took effect by operation of law pursuant to section 205 of the FPA, and only a notice of the effectiveness was issued, rather than an order accepting or rejecting the FCA results, “[r]ehearing therefore does not lie.”
A copy of the notice of dismissal is available here.