On November 21, 2024, FERC issued an Order partially accepting NorthWestern Energy Corporation’s (“NorthWestern”) compliance filing, effective July 10, 2024. FERC found that NorthWestern’s filing partially complies with the requirements of Order Nos. 2023 and 2023-A and directed NorthWestern to submit a further compliance filing within 60 days.
On May 10, 2024, NorthWestern submitted proposed revisions to its Montana Open Access Transmission Tariff (“Tariff”) to comply with Order Nos. 2023 and 2023-A. These revisions amended the pro forma Large Generator Interconnection Procedures (“LGIP”), Large Generator Interconnection Agreement (“LGIA”), Small Generator Interconnection Procedures (“SGIP”), and Small Generator Interconnection Agreement (“SGIA”). In its Order, FERC found that NorthWestern met the requirements to define regulatory limitations relevant to its service territory, publicly post the definition, and provide a narrative description of how it defines these limitations in its compliance filing.
In its filing, NorthWestern proposed certain variations from FERC’s Order Nos. 2023 and 2023-A requirements, which FERC reviewed under the “consistent with or superior to” standard. FERC viewed many of these variations as typographical or minor errors that NorthWestern inadvertently included in its compliance filing. Consequently, FERC directed NorthWestern to submit a further compliance filing to either adjusts these variations to reflect the pro forma procedures and agreements or to justify them as consistent with or superior to the established pro forma procedures and agreements.
NorthWestern also proposed revisions to LGIP and LGIA to incorporate the cluster study process framework adopted in Order No. 2023. FERC found these revisions partially compliant, accepting the proposal for additional language regarding cluster studies for the Colstrip Transmission System and revisions to Appendix 3 of the LGIP. However, FERC rejected the proposal to study SGIP interconnection requests in the same cluster study process as LGIP requests, as it was outside the scope of Order Nos. 2023 and 2023-A. Additionally, NorthWestern proposed to allocate 50% of cluster study costs on a per capita basis among interconnection customers in the cluster, and 50% of cluster study costs on a pro rata basis by megawatts among interconnection customers. In its determination, FERC found this compliant with Order Nos. 2023 and 2023-A.
NorthWestern proposed revisions to its LGIP and LGIA that provide for the allocation of system network upgrade costs based on the proportional impact of each generating facility. FERC found that the proposed revisions adopt the Commission’s pro forma provisions, without modification, and thus determined the revisions were compliant with Order Nos. 2023 and 2023-A.
NorthWestern also sought to incorporate the transition process framework from Order Nos. 2023 and 2023-A, allowing interconnection customers to request a one-time extension to their commercial operation date by December 31, 2028. FERC found these revisions compliant with the requirements of Order Nos. 2023 and 2023-A.
Lastly, NorthWestern proposed changes to its LGIP to address various network upgrades. While the previous network upgrades methodology focused solely on thermal performance criteria, NorthWestern’s proposed methodology would have included thermal, voltage, and short circuit performance, as well as necessary upgrades without performance metrics. NorthWestern also suggested replacing “system impact study” with “cluster study.” However, FERC determined these changes were beyond the scope of compliance with Order Nos. 2023 and 2023-A and directed NorthWestern to submit a revised compliance filing removing this language from its LGIP. A copy of FERC’s Order, issued in Docket No. ER24-1993, is available here.