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On April 22, 2022, the Commission on remand from the United States Court of Appeals for the District of Columbia Circuit (“D.C. Circuit”), reversed its approval of the California Independent System Operator Corporation’s (“CAISO”) proposed Capacity Market Adder (“20% adder”). The Commission ordered CAISO to submit a compliance filing that removes the 20% adder from its Open Access Transmission Tariff (“OATT”) and replace it with an alternative methodology that excludes the 20% adder.
Continue Reading FERC Reverses Approval of CAISO Capacity Market Adder

On April 21, 2022, FERC issued an order assessing a civil penalty of $600,000 to Ampersand Cranberry Lake Hydro, LLC (“Ampersand”), licensee for the 595 kilowatt (kW) Cranberry Lake Hydroelectric Project in St. Lawrence County, New York, for violation of Article 5 of the project’s license, which requires a licensee to retain possession of all project property covered by the license.
Continue Reading FERC Assesses $600,000 Civil Penalty to Hydro Licensee

On March 25, 2022, FERC found that Nopetro LNG, LLC’s (“Nopetro”) proposed natural gas liquefaction and truck loading facility and proposed transloading operations in Port St. Joe, Florida, are not subject to FERC’s jurisdiction under sections 3 or 7 of the Natural Gas Act (“NGA”).
Continue Reading FERC Declines to Exercise Jurisdiction Over Nopetro’s LNG Truck Loading Facility

On February 22, 2022, FERC issued a Supplemental Notice regarding its planned Technical Conference on its Notice of Inquiry on Financial Assurance Measures for licenses, scheduled to take place on Tuesday, April 26 at 11:30am.

The Supplemental Notice provides a schedule for the program and proposed panel topics.  The first panel, Protecting Hydroelectric Facilities and

On March 24, 2022, FERC issued an Order Addressing Arguments Raised on Rehearing and Denying Motion for Temporary Stay regarding The Nevada Hydro Company, Inc.’s (Nevada Hydro) October 2017 license application for its proposed Lake Elsinore Advanced Pumped Storage (LEAPS) Project.
Continue Reading FERC Addresses Arguments on Rehearing of Order Dismissing License Application for Pumped Storage Project

On March 24, 2022, FERC denied a petition filed by Irradiant Partners, LP (“Irradiant” or “Petitioner”) seeking waiver of the Commission’s Qualifying Facility (“QF”) filing requirement for its acquisition and recertification of 185 QFs. The Commission held that the recertification requirement—even at this scale—was not unduly burdensome, citing mitigating factors and emphasizing the particular importance of having up-to-date ownership information to assist FERC in monitoring for discrimination.
Continue Reading FERC Denies Request for Waiver of Recertification Filing Requirement for Acquirer of 185 Qualifying Facilities

On January 21, 2022, FERC accepted revisions to the Southeast Energy Exchange Market (“SEEM”) Agreement consistent with commitments made by SEEM members in response to two deficiency letters it issued before the SEEM Agreement went into effect by operation of law.
Continue Reading FERC Accepts Tariff Revisions to Southeast Energy Exchange Market, Drawing Concurrences from Chairman Glick and Commissioner Clements

On January 20, 2022, FERC issued an order on remand from the United States Court of Appeals for the District of Columbia Circuit (“D.C. Circuit”) directing PJM Interconnection, L.L.C. (“PJM”) to remove provisions from its Tariff that applied a 10 percent adder to the energy and ancillary services (“E&AS”) offset in PJM’s net Cost of New Entry (“CONE”) calculation. FERC acknowledged that energy market rules permit generators to increase their offers into the energy market by 10 percent above estimated costs. That fact alone, FERC concluded, does not justify application of the 10 percent adder to the E&AS offset in the Net CONE calculation used to establish the Variable Resource Requirement Curve (“VRR Curve”). Moreover, FERC concluded, PJM failed to present sufficient evidence to support inclusion of the 10 percent adder. FERC directed PJM to remove the 10 percent adder from its VRR Curve determination for the 2023-2024 Base Residual Auction (“BRA”) and subsequent auctions. FERC previously directed PJM to delay the start of the 2023-2024 BRA (see January 18, 2022 edition of the WER). In the January 20 order, FERC stated its expectation that PJM propose an amended BRA schedule that would provide it adequate time to remove the 10 percent adder from its Tariff. Commissioner James Danly issued a separate dissenting statement.
Continue Reading On Remand, FERC Reverses Prior Approval of PJM 10% Net CONE Adder

On December 22, 2021, FERC issued an order on voluntary remand from the United States Court of Appeals for the District of Columbia Circuit (“D.C. Circuit”) directing changes to PJM Interconnection, L.L.C.’s (“PJM’s”) reserve market design. FERC’s December 22 order reverses certain changes it previously ordered in May 2020 (“May 2020 Order”). The December 22 order affirmed FERC’s decision in the May 2020 Order to accept PJM’s proposal to consolidate its Tier 1 and Tier 2 Synchronized Reserve Products. However, the December 22 order required PJM to revert back to its currently-effective Reserve Penalty Factors, two-step Operating Reserve Demand Curve (“ORDC”), and a backward-looking Energy and Ancillary Services (“E&AS”) Offset. FERC directed PJM to apply the backward-looking E&AS Offset to the 2023/24 Base Residual Auction (“BRA”), which was previously scheduled to run in January 2022, notwithstanding any resulting delay to the auction schedule. FERC required PJM to submit a revised BRA schedule on compliance. Commissioner Christie issued a concurring opinion, and Commissioner Danly dissented in part.
Continue Reading FERC Reverses Certain Changes to PJM Reserve Market in Voluntary Remand Proceeding