On May 27, 2022, a divided FERC ultimately agreed to allow ISO New England Inc. (“ISO-NE”) to sunset its current minimum offer price rule (“MOPR”) as part of its capacity market. During the next two capacity auctions, ISO-NE will permit a specified quantity of resources to enter the market without being subject to buyer-side market power mitigation review. Thereafter, ISO-NE will replace the current MOPR with a reformed buyer-side market power mitigation construct (the “MOPR Reforms”). Each of the five commissioners wrote separately, with Chairman Richard Glick, Commissioners Allison Clements and Willie Phillips, and Commissioner Mark Christie writing in concurrence and Commissioner James Daly writing in dissent.
FERC Staff Releases Annual Assessment Signaling Higher Energy Prices and Ongoing Operational Challenges During Extreme Weather Events
On May 19, 2022, FERC staff released its 2022 Summer Energy Market and Reliability Assessment (“Summer Assessment”). The Summer Assessment forecasts “higher than average” temperatures for the summer, which are expected to have a significant impact on demand for electricity, amid a continuation of extreme drought conditions in the West, and coming on the heels of the retirement of thousands of megawatts of baseload conventional resources.
FERC Reverses Approval of CAISO Capacity Market Adder
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.
FERC Assesses $600,000 Civil Penalty to Hydro Licensee
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.
FERC Declines to Exercise Jurisdiction Over Nopetro’s LNG Truck Loading Facility
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”).
FERC Issues Supplemental Notice on Technical Conference on Financial Assurances
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
FERC Addresses Arguments on Rehearing of Order Dismissing License Application for Pumped Storage Project
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.
FERC Denies Request for Waiver of Recertification Filing Requirement for Acquirer of 185 Qualifying Facilities
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.
FERC Opens Inquiry on Dynamic Line Ratings
On February 17, 2022, FERC launched an inquiry to examine whether the use of dynamic line ratings would improve the accuracy and transparency of transmission line ratings.
FERC Accepts Tariff Revisions to Southeast Energy Exchange Market, Drawing Concurrences from Chairman Glick and Commissioner Clements
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.