On July 9, 2018, FERC denied Cloverland Electric Cooperative’s (“Cloverland”) application to terminate its mandatory obligation under the Public Utilities Regulatory Policies Act of 1978 (“PURPA”) to purchase electric energy and capacity from qualifying cogeneration or small power production facilities (“QF”) with a net capacity in excess of 20 megawatts. In denying the request, FERC emphasized that direct membership in regional transmission organizations or independent system operators is necessary to meet the exemption Cloverland requested under PURPA.
FERC Rejects PJM’s Proposed Tariff Revisions and Initiates Section 206 Proceeding
On June 29, 2018, FERC rejected proposals by Calpine Corporation (“Calpine”) and PJM Interconnection, L.L.C. (“PJM”) to address what they view as shortcomings in PJM’s capacity markets resulting from what they characterize as state subsidy programs that suppress capacity prices (the “June 29 Order”).
Senate Approves Hydropower Bills by Unanimous Consent
On Thursday, June 28, 2018, the Senate approved ten individual hydropower bills by unanimous consent. Seven of the ten were previously passed by the House and will now go to the President for his signature. The remaining three bills have not yet been passed by the House, but in all three cases, the House has passed either a companion bill or bills with language similar to the Senate bills.
Commissioner Powelson Announces Resignation
FERC Commissioner Robert Powelson announced Thursday, June 28, 2018, that he plans to resign from FERC in mid-August 2018 to become president and CEO of the National Association of Water Companies, a trade group for the private water industry.
FERC Approves CAISO’s Creation of Opportunity Cost Adder for Use-Limited Resources
On June 21, 2018, FERC approved tariff provisions proposed by the California Independent System Operator (“CAISO”). Specifically, the Commission’s order approved, subject to compliance filing, CAISO’s proposals to revise the definition of which resources qualify as use-limited and to allow those resources to include opportunity cost adders in their bids, while rejecting CAISO’s proposed revisions relating to the Master File, an electronic database of generator-provided data on resources participating in CAISO markets, as well as its proposal to remove ramp rates as components of daily bids.
Senate Energy and Natural Resources Committee Holds Hearing on FERC Oversight
On June 12, 2018, the Senate Energy and Natural Resources Committee hosted all five FERC Commissioners for an oversight hearing to discuss topics that included the agency’s approach to changes in the makeup of generating plants on the bulk power system and the efficiency of its energy infrastructure permitting processes.