On September 10, 2024, FERC issued an Order denying two complaints. The first complaint was filed on January 23, 2023 by Montana-Dakota Utilities Company (“MDU”) against Midcontinent Independent System Operator, Inc. (“MISO”) and Southwest Power Pool, Inc. (“SPP”). The second complaint was filed on March 8, 2024 by MISO against SPP. Both complaints stem from the same underlying dispute relating to the application of the market-to-market coordination process under the MISO-SPP Joint Operation Agreement (“JOA”) to the Charlie Creek Flowgate, a transmission facility in North Dakota.Continue Reading FERC Dismisses Challenges Related to Market-to-Market Coordination over Data Center-Constrained Flowgate
Elizabeth McCormick
Eighth Circuit Applies FERC’s Filed Rate Doctrine to Reject Allegations that SPP Breached an Oral Contract Made During Winter Storm Uri
On August 5, 2024, the United States Court of Appeals for the Eighth Circuit (“Eighth Circuit”) denied Associated Electric Cooperative, Inc.’s (“AECI”) petition for review of a Federal Energy Regulatory Commission (“FERC”) order upholding FERC’s decision to exercise primary jurisdiction over emergency energy sales between Southwest Power Pool, Inc. (“SPP”) and AECI during Winter Storm Uri and FERC’s decision that SPP properly compensated AECI pursuant to SPP’s Open Access Transmission Tariff (“Tariff”). The Eighth Circuit denied the AECI’s petition and upheld FERC’s determination that AECI was appropriately compensated according to the existing tariff rates filed with FERC and, accordingly, rejected AECI’s claims that SPP had breached an alleged oral contract with SPP personnel made during the storm.Continue Reading Eighth Circuit Applies FERC’s Filed Rate Doctrine to Reject Allegations that SPP Breached an Oral Contract Made During Winter Storm Uri
D.C. Circuit Finds That Interconnection Customers are Responsible for Network Upgrade Costs
On July 19, 2024, the United States Court of Appeals for the District of Columbia Circuit (“D.C. Circuit”) issued an Order denying Tenaska Clear Creek Wind, LLC’s (“Clear Creek”) challenges to FERC’s orders allowing the allocation of costs for network upgrades. Southwest Power Pool, Inc. (“SPP”) assigned costs of more than $100 million to Clear Creek to pay for upgrades required on SPP’s system to accommodate the interconnection of Clear Creek’s wind turbine-powered electrical generation project (the “Project”).Continue Reading D.C. Circuit Finds That Interconnection Customers are Responsible for Network Upgrade Costs
FERC Approves MISO’s Use of Downward Sloping Demand Curve in 2025-2026 Planning Resource Auctions
On June 27, 2024, FERC accepted Midcontinent Independent System Operator Inc.’s (“MISO”) proposed tariff revisions that sought to implement a downward-sloping Reliability Based Demand Curve (“RBDC”) in the MISO Planning Resource Auction (“Auction”) beginning with the 2025/2026 Planning Year. FERC determined that MISO’s proposal is not only consistent with its acceptance of similar sloped curves in other Regional Transmission Owners/Independent System Operators capacity markets but that MISO’s proposal to adopt a downward-sloping RBDC will reduce volatility in Auction Clearing Prices, increase the stability of the capacity revenue stream over time, and render capacity investments less risky, thereby encouraging greater investment and at a lower financing cost.Continue Reading FERC Approves MISO’s Use of Downward Sloping Demand Curve in 2025-2026 Planning Resource Auctions
FERC Issues ANOPR on Dynamic Line Ratings
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.Continue Reading FERC Issues ANOPR on Dynamic Line Ratings
FERC Issues Notice of Proposed Rulemaking to Conform to EPA’s Recent CWA § 401 Rule
At its May 23, 2024 open meeting, the Federal Energy Regulatory Commission (“FERC”) issued a Notice of Proposed Rulemaking (“NOPR”) proposing to establish a one-year “reasonable period of time” for certifying authorities to act on requests for water quality certification under section 401 of the Clean Water Act (“CWA”). The proposed rule also clarifies that all FERC authorizations “that have the potential to discharge into waters of the United States,” including exemptions from licensing, require either a section 401 water quality certification or waiver thereof.Continue Reading FERC Issues Notice of Proposed Rulemaking to Conform to EPA’s Recent CWA § 401 Rule
FERC Accepts CAISO’s Request to Raise Soft Cap Offer
On April 25, 2024, FERC approved the California Independent System Operator Corporation’s (“CAISO”) request to increase its capacity procurement mechanism (“CPM”) soft cap offer from $6.31/kW-month to $7.32, which will become effective in June 2024.Continue Reading FERC Accepts CAISO’s Request to Raise Soft Cap Offer
Third Circuit Upholds PJM Capacity Market Change but Prevents Retroactive Application
On March 12, 2024, the U.S. Court of Appeals for the Third Circuit upheld a prospective rule change to PJM Interconnection, L.L.C.’s (“PJM”) annual capacity auction but struck down attempts by PJM and FERC to apply the rule change to the ongoing auction held in December 2022. Although the rule change permits PJM to adjust the Locational Deliverability Area (“LDA”) Reliability Requirement downward to reflect the lack of participation in the December 2022 auction by certain resources to correct for distortions to the auction results, the Third Circuit held that FERC could not permit the change to go into effect in the middle of an ongoing auction.Continue Reading Third Circuit Upholds PJM Capacity Market Change but Prevents Retroactive Application
Senate Committee Considers Three New FERC Nominees
On March 21, 2024, the Senate Committee on Energy and Natural Resources held a hearing to consider President Biden’s three recent nominations to the Federal Energy Regulatory Commission (“FERC” or “Commission”): (1) David Rosner for the term expiring June 30, 2027; (2)Lindsay S. See for the term expiring June 30, 2028; and (3)Judy W. Chang for the term expiring June 30, 2029.Rosner is an energy industry analyst at FERC and led efforts related to the Commission’s rulemaking on energy storage resources, electric transmission, offshore wind integration, fuel security, and natural gas-electric coordination. See is the Solicitor General of West Virginia, and manages West Virginia’s civil and criminal appellate dockets, with a focus on regulatory and administrative law matters. Chang is an energy economics and policy analyst and was the former Undersecretary of Energy and Climate Solutions for Massachusetts, where she set policies for the Commonwealth’s energy sector.Continue Reading Senate Committee Considers Three New FERC Nominees
FERC Establishes New Policy to Reject Hydropower Preliminary Permit Applications Based on Tribal Opposition to Projects Located on Their Tribal Lands
At the February 15, 2024, FERC open meeting and in four orders issued the same day, FERC established a new policy governing its issuance of preliminary permits under section 4(f) of the Federal Power Act (“FPA”), pursuant to which it will not issue preliminary permits for projects located on Tribal lands if the Tribe on whose land the project is proposed to be located opposes the permit. FERC explained that this policy change is based on the agency’s commitment to ensuring that Tribal concerns and interests are considered whenever FERC’s actions or decisions have the potential to adversely affect Tribes or Tribal trust resources. To avoid future permit denials, FERC emphasized that potential applicants should fully inform Tribes about proposed projects on their lands before filing the permit application.Continue Reading FERC Establishes New Policy to Reject Hydropower Preliminary Permit Applications Based on Tribal Opposition to Projects Located on Their Tribal Lands