On May 21, 2026, FERC denied a complaint filed by Gaston Green Acres Solar, LLC (Gaston) and Bethel NC Hwy 11 Solar, LLC (Bethel) (collectively, with Gaston, Complainants) against PJM Interconnection, L.L.C. (PJM) arguing: (1) PJM’s Open Access Transmission Tariff (Tariff) is unjust and unreasonable because it prevented Complainants from withdrawing their generation projects from PJM’s generator interconnection process Transition Cycle No. 1 without penalty, and (2) in the alternative, FERC should order PJM to issue Bethel its own generation interconnection agreement (GIA) if PJM’s Tariff is not deemed to be unjust and unreasonable in this regard. FERC denied the complaint, finding the Complainants did not satisfy their burden under Federal Power Act section 206, failed to identify Tariff provisions requiring the issuance of a GIA for Bethel, and did not demonstrate that PJM violated its Tariff.
FERC Sets Oil Pipeline Price Index for July 1, 2026 through June 30, 2031
On April 24, 2026, FERC issued a Final Rule establishing a Producer Price Index for Finished Goods (PPI-FG) minus 0.55% for oil pipelines. The Commission set the revised PPI-FG for a five-year period, July 1, 2026 through June 30, 2031. In setting the revised index, FERC “trimmed” the utilized cost data to the middle 80% of cost changes, declined to incorporate certain Form 6 cost data that was resubmitted in 2025, and adjusted the page 700 data set to reflect the Commission’s return on equity (ROE) policy changes based on the 2020 index review. The Final Rule is effective June 29, 2026.
FERC Orders Further Compliance Filing in PJM Co-Location Proceedings
On April 16, 2026, FERC accepted in part and rejected in part PJM Interconnection, L.L.C.’s (PJM) compliance filing proposing changes to PJM’s Open Access Transmission Tariff (Tariff). FERC accepted PJM’s clarification of procedures for using new generating facilities to serve Co-Located Load but rejected revisions to the definition of “Co-Located Load” and PJM’s incorporation of such definition in specific Tariff sections. FERC ordered PJM to submit a further compliance filing by May 18, 2026.
FERC Approves Virtualization CIP Reliability Standards and Definitions
On March 19, 2026, FERC issued Order No. 919, which approved eleven proposed Critical Infrastructure Protection (CIP) Reliability Standards, four new definitions, and eighteen proposed revised definitions to the North American Electric Reliability Corporation’s (NERC) Glossary of Terms Used in Reliability Standards (NERC Glossary). FERC asserted that the new and revised definitions and new CIP Reliability Standards will support entities’ adoption of virtualization, which will improve the reliability of the Bulk-Power System against cyber security threats. NERC’s revisions will become effective the first day of the first calendar quarter that is 24 months after Order No. 919’s May 26, 2026, effective date, or April 1, 2028.
FERC Issues Long-Awaited New England ROE Order and Backdates Lower Returns Twelve Years
On March 19, 2026, in Opinion No. 594, FERC issued a long-awaited decision in litigation about the base Return on Equity (ROE) to be earned by the New England Transmission Owners (NETOs). Previous iterations of the Commission had failed to address the 2017 remand from the U.S. Court of Appeals for the District of Columbia Circuit (D.C. Circuit) in Emera Maine v. FERC. FERC set the NETOs’ ROE at 9.57%. In addition to applying that new ROE going forward, FERC backdated the new rate to October 16, 2014, and ordered the NETOs to issue refunds with interest to implement that directive. FERC separately required refunds for the 15-month refund period from October 1, 2011, through December 31, 2012. FERC’s authority to backdate new rates under section 206 has been challenged in other cases recently.
PJM Proposes Expedited Generator Interconnection Track
On February 27, 2026, PJM Interconnection, L.L.C. (PJM) filed revisions to its Open Access Transmission Tariff (Tariff) to establish an Expedited Interconnection Track process for Generating Facilities (EIT Process). According to the filing, the proposed EIT Process would enable PJM to consider up to 10 expedited interconnection requests per calendar year for large new or uprated Capacity Resources. PJM requested an effective date of July 31, 2026, for the tariff revisions implementing the proposed EIT Process and requested an order from FERC by May 28, 2026.
DC Circuit Upholds PJM’s Sunset of EER Participation in Capacity Auctions
On February 10, 2026, the U.S. Court of Appeals for the District of Columbia Circuit (DC Circuit) upheld FERC’s order accepting revisions to the PJM Interconnection, L.L.C. (PJM) Open Access Transmission Tariff (Tariff) to prohibit Energy Efficiency Resources (EERs) from participating in PJM’s capacity market auctions starting with the 2026/2027 Delivery Year auction. The court held that FERC’s acceptance of PJM’s proposal to sunset EERs’ participation in capacity auctions did not run afoul of the filed-rate doctrine, nor was it arbitrary and capricious.
FERC Accepts SPP’s Large Load Interconnection Process
On January 14, 2026, FERC accepted the Southwest Power Pool, Inc.’s (SPP) revisions to its Open Access Transmission Tariff (Tariff) to create a High Impact Large Load (HILL) study process and High Impact Large Load Generation Assessment (HILLGA) process. The HILL study process establishes study and operational requirements for HILLs connecting to SPP’s transmission system. The HILLGA is a new interconnection process for interconnection requests of generation resources necessary to serve HILLs. The Tariff revisions are effective as of January 15, 2026.
ISO-NE Seeks to Establish a Prompt Capacity Market and Deactivation Framework
On December 30, 2025, ISO New England Inc. (ISO-NE) and the New England Power Pool Participants Committee (NEPOOL) filed proposed revisions to ISO-NE’s Transmission, Markets and Services Tariff (Tariff) to establish a prompt capacity market and deactivation framework (CAR-PD) to be implemented starting with the proposed framework’s first annual capacity auction cycle for the June 1, 2028 – May 31, 2029 capacity commitment period (2028/2029 Delivery Period). If accepted, the prompt capacity market will replace ISO-NE’s three-year Forward Capacity Market (FCM). ISO-NE requests that the Commission accept its proposed reforms, effective March 31, 2026.
FERC Orders PJM to Establish Terms and Conditions in its Tariff for Co-Location Arrangements
On December 18, 2025, FERC directed PJM Interconnection, L.L.C. (“PJM”) to revise its Open Access Transmission Tariff (“Tariff”) to:
1) establish terms that an Interconnection Customer seeking to serve co-located load must follow when effectuating a co-location arrangement;
2) clarify the scope and potential of interconnection service when interconnecting new generation to serve co-located load; and
3) require that a customer taking transmission service on behalf of co-located load take one of three new transmission services.
FERC found PJM’s Tariff was unjust and unreasonable because it did not provide the rates, terms, and conditions of service applicable to generators serving co-located load or eligible customers taking transmission service on behalf of such load with sufficient clarity or consistency. FERC separately established a paper hearing to determine just and reasonable rates for new transmission services and ordered PJM to revise the Behind the Meter Generation rules in the PJM Tariff.