Dixon Wallace

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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.

On February 20, 2025, FERC denied Great Basin Transmission, LLC’s (“Great Basin”) request for two transmission incentives for Great Basin’s Southwest Intertie Project-North Transmission Line and associated upgrades to Great Basin’s existing One Nevada Transmission Line (together, the “Project”). FERC found that Great Basin did not demonstrate that the Project…

On January 28, 2025, FERC accepted the New York Independent System Operator, Inc.’s (“NYISO”) proposed revisions to its Market Administration and Control Area Services Tariff (“Services Tariff”).  The revisions define the demand curves in the Installed Capacity (“ICAP”) Market for the 2025/2026 Capability Year and implement a quadrennial process, known as the Demand Curve reset (“DCR”), which outlines the methodologies and inputs for subsequent annual updates to the ICAP Demand Curves for the 2026/2027, 2027/2028, and 2028/2029 Capability Years.    

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”).

On December 5, 2024, the U.S. Court of Appeals for the Third Circuit heard oral arguments in Transource Pennsylvania LLC v. Steven M. Defrank, et.al. The case presents the question of potential tension between FERC’s exclusive authority over transmission planning and a state’s siting authority. The court has not yet decided the case.

On September 10 and 11, 2024, FERC staff held a two-day workshop at its headquarters in Washington, DC on opportunities to further refine the generator interconnection queue process. Panelists and FERC staff discussed potential enhancements to transmission planning and processing interconnection requests over the course of six panels on discrete…

On July 25, 2024, FERC issued an order granting in part and denying in part a complaint raised by American Municipal Power, Inc., the People’s Counsel for the District of Columbia, and the PJM Industrial Customer Coalition (collectively, “Complainants”) against PJM Interconnection, L.L.C. (“PJM”) arguing, principally, that PJM violated Schedule 6 of the PJM Operating Agreement by failing to execute Designated Entity Agreements in all situations with each “Designated Entity,” or the entity designated to build transmission projects that PJM selects in the PJM Regional Transmission Expansion Plan (“RTEP”). FERC also granted in part and denied in part a separate request by PJM under section 206 of the Federal Power Act to revise Schedule 6 of the PJM Operating Agreement (the “PJM 206 Filing”) governing the RTEP process and associated requirements for Designated Entity Agreements. FERC established paper hearing procedures to develop a record to determine PJM’s responsibilities concerning Designated Entity Agreements for certain RTEP projects already in process and whether remedial actions are required to address the Operating Agreement violations.

On July 9, 2024, the United States Court of Appeals for the District of Columbia Circuit (“D.C. Circuit”) declined to stay a new Environmental Protection Agency (“EPA”) rule that seeks to limit methane emissions in the oil and gas industries (“Methane Rule”), thereby allowing the Methane Rule to remain in effect while litigation proceeds.

On June 27, 2024, FERC issued an advance notice of proposed rulemaking (“ANOPR”) regarding potential reforms to require transmission providers to use dynamic line ratings (“DLRs”) to encourage more accurate and transparent line ratings. The Commission seeks comment on a proposed DLR framework and whether other transmission line rating reforms are needed to ensure just and reasonable and not unduly discriminatory or preferential FERC-jurisdictional rates. Initial and reply comments are due 90 and 120 days after the ANOPR’s publication in the Federal Register, respectively. After the comment period in this proceeding ends, FERC may consider issuing a formal Notice of Proposed Rulemaking, which would be a prerequisite to issuing any final rule.