On April 25, 2025, FERC approved two uncontested stipulation and agreements that propose to settle the Natural Gas Act (“NGA”) section 4 general rate cases filed on May 30, 2024, by two interconnected pipelines, Algonquin Gas Transmission, LLC (“Algonquin”) and Maritimes & Northeast Pipeline, L.L.C. (“Maritimes”). Both settlements established a 13.5% return on equity (“ROE”) for the calculation of rates for new incremental expansion projects following the settlements’ effective dates, and for the equity component of Allowance for Funds Used During Construction (“AFUDC”).
Order No. 1920-B Affirms FERC’s Long-Term Transmission Planning and Cost Allocation Rule
On April 11, 2025, FERC issued Order No. 1920-B, which clarified and maintained key requirements from Order No. 1920-A regarding long-term transmission planning and cost allocation. FERC clarified that transmission providers are not obligated to plan for the long-term needs of unenrolled non-jurisdictional transmission providers, but voluntary arrangements are allowed. The order also upheld the requirement for transmission providers to include Relevant State Entities’ agreed-upon cost allocation methods in their compliance filings. Additionally, FERC sustained the consultation requirement with Relevant State Entities before amending cost allocation methods. Lastly, FERC declined to expand the definition of “Relevant State Entity” and rejected certain rehearing requests as procedurally barred. Overall, FERC explained that Order No. 1920-B reinforces the importance of long-term, forward-looking, and comprehensive transmission planning and cost allocation processes to meet the demands of the modern transmission grid. The order was approved by four Commissioners, with Commissioner See not participating.
FERC Grants and Denies in Part Basin Electric’s Transmission Incentive Petition
On March 31, 2025, FERC granted in part and denied in part Basin Electric Power Cooperative’s (Basin Electric) petition for declaratory order seeking transmission incentives for the Roundup-Kummer Ridge Project, the Tande-Finstad-Leland Olds Project (LOS-Tande Project), and the NE Williston-Folvag 115 kV-Judson-East Fork-Tande Project (Springbrook Project) (collectively, “Projects”). FERC granted the Hypothetical Capital Structure Incentive and the Abandoned Plant Incentive to both the LOS-Tande Project and Springbrook Project, but denied the Hypothetical Capital Structure Incentive for the Roundup-Kummer Ridge Project.
FERC Grants Waiver Request to Prevent Termination of Interconnection Service to the Palisades Nuclear Plant
On February 28, 2025, FERC granted a request by Holtec Palisades, LLC (“Holtec”) for waiver of certain provisions of the Midcontinent Independent System Operator, Inc. (“MISO”) Open Access Transmission, Energy and Operating Reserve Markets Tariff (“Tariff”) to prevent the termination of interconnection service to the Palisades Nuclear Plant (“Palisades”). Absent the requested waiver, Palisades’ interconnection service in MISO was set to terminate on May 20, 2025, which would have delayed its return to commercial operations as Palisades progresses through the recommissioning process. According to Holtec’s waiver request, Palisades is set to become the first suspended nuclear plant to return to active service in the United States.
FERC Announces Commissioner-led Technical Conference on Resource Adequacy in RTOs/ISOs
On February 20, 2025, FERC Chairman Mark Christie announced an upcoming Commissioner-led technical conference on resource adequacy in Regional Transmission Organization (“RTO”) and Independent System Operator (“ISO”) regions. The technical conference will take place over two days at FERC headquarters in Washington, D.C. on June 4, 2025, and June 5, 2025.
FERC Withdraws Draft GHG Policy Statement and Terminates Associated Proceeding
On January 24, 2025, FERC withdrew its 2022 draft Greenhouse Gas (“GHG”) Policy Statement and terminated the associated proceeding. FERC determined that, after reviewing the entire record, issues concerning GHG emissions are better analyzed on a case-by-case basis when raised by parties in proceedings. Commissioners Phillips, Rosner, and Chang issued a joint concurrence noting that, although FERC is withdrawing its draft GHG Policy Statement, FERC still considers GHG emissions under its National Environmental Policy Act (“NEPA”) analysis and balances project benefits with potential adverse consequences under the Natural Gas Act (“NGA”).
PSE&G to Pay $6.6 Million Penalty for Failing to Provide Full and Accurate Information to PJM
On December 5, 2024, the Federal Energy Regulatory Commission (“FERC”) approved Public Service Electric and Gas Company’s settlement agreement (“PSE&G”) to pay a $6.6 million civil penalty to resolve an ongoing investigation with FERC’s Office of Enforcement (“FERC Enforcement”). According to FERC’s order, the underlying investigation involved PSE&G’s alleged failure to provide full and accurate information when seeking approval from PJM Interconnection, L.L.C. (“PJM”) to replace a transmission line in New Jersey as part of the PJM Regional Transmission Expansion Plan (“RTEP”) process. PSE&G also agreed to submit to annual compliance monitoring for up to two years as part of the approved Stipulation and Consent Agreement (“Stipulation”).
High-Level Summary of FERC Order No. 1920-A on Transmission Planning and Cost Allocation
On November 21, 2024, FERC issued Order No. 1920-A, which modified Order No. 1920 to expand the states’ roles in long-term transmission planning and clarified requirements for such planning as set forth in Order No. 1920. FERC made changes in three broad areas, amongst many other modifications: (1) expanding the role of state entities in the transmission planning process, (2) requiring transmission providers to create additional transmission planning scenarios to inform implementation of cost allocation methods upon the request of state entities, and (3) removing the requirement for transmission providers to include corporate financial commitments in Factor Category Seven when developing long-term transmission planning scenarios.
FERC Holds Technical Conference on Large Loads Co-Locating at Generating Facilities
On November 1, 2024, FERC Commissioners led a technical conference at their headquarters in Washington, DC, on issues pertaining to co-locating large loads at generating facilities. FERC Commissioners asked questions of individuals across the energy industry into how large loads, and data centers in particular, are impacting the grid and
FERC Accepts SPP’s Proposed Tariff Revisions Allowing Make-Whole Payments
On September 19, 2024, FERC approved Southwest Power Pool, Inc.’s (“SPP”) proposed tariff revisions allowing make-whole payments for incremental energy costs for offers affected by the incremental energy offer cost caps required by FERC’s Order No. 831. In doing so, FERC found that the tariff revisions appropriately provide an opportunity