On September 30, 2025, the United States Court of Appeals for the District of Columbia Circuit (“D.C. Circuit”) vacated and remanded FERC’s order approving a two-tiered fuel rate structure for Antero Resource Corporation’s (“Antero”) usage of Tennessee Gas Pipeline Company, L.L.C.’s (“Tennessee Gas”) Broad Run Expansion Project (“Expansion Project”). The D.C. Circuit held FERC’s approval of the rate structure was arbitrary and capricious because it required Antero to always pay for the highest fuel rates irrespective of the segment’s actual operations.
FERC Requires New England Transmission Owners to Answer 2023 Annual Update Information Requests
On September 18, 2025, FERC accepted in part and denied in part the Maine Office of Public Advocate’s (“Maine OPA”) request for eight New England Transmission Owners (“Identified NETOs”) to answer information requests as part of the Information Exchange Period within their Formula Rate Protocols (“Protocols”). Three of the Identified NETOs must now answer Maine OPA’s information requests regarding procedures for evaluating the need for asset condition projects; all Identified NETOs must provide information on their respective procedures for ensuring asset condition projects are not placed in service before such projects are needed.
FERC Clears the Way for the California Independent System Operator’s Extended Day-Ahead Market
On August 29, 2025, FERC issued three orders accepting tariff revisions proposed by PacifiCorp and Portland General Electric (“PGE”) to enable both utility’s participation in the California Independent System Operator Corporation’s (“CAISO”) Extended Day-Ahead Market (“EDAM”) and accepting CAISO’s proposed tariff revisions which modify the EDAM’s allocation of congestion revenues. The three orders issued by FERC clear the way for PacifiCorp and PGE, the first two entities to file tariff revisions to participate in the EDAM, to enter the market in 2026.
FERC Launches FPA 206 Investigation to Assess Necessity of the WECC Soft Price Cap
On July 15, 2025, FERC initiated an investigation, pursuant to section 206 of the Federal Power Act (“FPA”), to assess whether the Western Electricity Coordinating Council’s (“WECC”) soft price cap on spot market energy sales should be eliminated. FERC preliminarily concluded that the WECC soft price cap is no longer just and reasonable because of changes in the circumstances in the WECC market, and thus proposed its elimination pending the results of the investigation. FERC requested that interested parties submit comments within 30 days of its order (i.e., by August 14, 2025). FERC expects to issue an order on the results of its investigation by December 30, 2025.
FERC Accepts SPP’s Revised High Priority Transmission Study Planning Process
On May 14, 2025, FERC accepted Southwest Power Pool, Inc.’s (“SPP”) proposed revisions to its Open Access Transmission Tariff (“OATT”) to modify its high priority transmission study planning process. SPP argued these changes will allow transmission studies to better address transmission issues identified by stakeholders by expanding the scope of such studies to allow for considerations beyond economic benefits and costs, such as short-circuit and dynamic stability. FERC accepted the proposed OATT revisions as just and reasonable, finding the revised process to satisfy the goals of FERC Order No. 890 and allow SPP’s studies to address the specific needs of stakeholders.
FERC Approves Uncontested Rate Case Settlements in 2024 Rate Cases Filed by Algonquin Gas Transmission and Maritimes & Northeast Pipeline
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.