Jill Drum

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On June 26, 2026, FERC accepted New York Independent System Operator, Inc.’s (NYISO) proposal to modify its Installed Capacity market rules to address seasonal reliability risks and to account for seasonal availability of capacity supply.  In doing so, FERC found that the revisions will enhance NYISO’s ability to send appropriate price signals through the Installed Capacity market, which will ensure sufficient capacity during winter periods.  The revisions were accepted effective June 28, 2026.

On May 29, 2026, FERC approved revisions to the ISO New England, Inc.’s (ISO-NE) proposed market rules for the participation of Distributed Energy Resources (DERs) and to implement a one-time extension to the period in which resources are required to resume commercial operation following a forced outage. FERC held that the tariff revisions are just and reasonable because they address a gap in ISO-NE’s rules created during the Order No. 2023 compliance process wherein there was no longer a process for DERs to establish Network Resource Capability (NRC) and/or Capacity Network Resource Capability (CNRC), which are necessary to participate in ISO-NE’s markets, and because they balance needed resource flexibility while ensuring timely repair after an outage.

On February 19, 2026, FERC dismissed a complaint filed by Baltimore Gas and Electric Company (BGE) against Transcontinental Gas Pipe Line Company, LLC (Transco) asserting that BGE had a contractual right to challenge its negotiated rate with Transco pursuant to section 5 of the Natural Gas Act (NGA). FERC held that BGE contractually waived its NGA section 5 rights with respect to its negotiated rate, and BGE therefore was required to pay the negotiated rate.

On January 14, 2026, FERC accepted the Southwest Power Pool, Inc.’s (SPP) revisions to its Open Access Transmission Tariff (Tariff) to create a High Impact Large Load (HILL) study process and High Impact Large Load Generation Assessment (HILLGA) process. The HILL study process establishes study and operational requirements for HILLs connecting to SPP’s transmission system. The HILLGA is a new interconnection process for interconnection requests of generation resources necessary to serve HILLs. The Tariff revisions are effective as of January 15, 2026.

On December 18, 2025, FERC directed PJM Interconnection, L.L.C. (“PJM”) to revise its Open Access Transmission Tariff (“Tariff”) to:

1) establish terms that an Interconnection Customer seeking to serve co-located load must follow when effectuating a co-location arrangement;
2) clarify the scope and potential of interconnection service when interconnecting new generation to serve co-located load; and
3) require that a customer taking transmission service on behalf of co-located load take one of three new transmission services.

FERC found PJM’s Tariff was unjust and unreasonable because it did not provide the rates, terms, and conditions of service applicable to generators serving co-located load or eligible customers taking transmission service on behalf of such load with sufficient clarity or consistency. FERC separately established a paper hearing to determine just and reasonable rates for new transmission services and ordered PJM to revise the Behind the Meter Generation rules in the PJM Tariff.

On November 17, 2025, FERC accepted the Midcontinent Independent System Operator, Inc.’s (MISO) proposed revisions to its Open Access Transmission Tariff (OATT) to modify real power testing requirements for Demand Resources. MISO specifically proposed more stringent requirements for Demand Resources seeking waiver of performing real power tests and real power tests for Demand Resources using a firm service level baseline. FERC accepted the proposed revisions as just and reasonable, finding the proposed revisions standardize testing procedures for Demand Resources.

On November 24, 2025, the U.S. District Court for the Middle District of North Carolina denied American Efficient LLC’s (American Efficient) preliminary injunction seeking to halt FERC’s civil enforcement proceedings for alleged market manipulation and tariff violations. American Efficient argued that FERC’s process violated the Seventh Amendment and Article III of the U.S. Constitution by denying its right to a jury trial in an Article III court. The Court held that the Federal Power Act’s (FPA) scheme—allowing FERC to assess a penalty but requiring the government to obtain a de novo jury trial in federal court before any penalty can be enforced—satisfies requirements under the Constitution.

On October 28, 2025, the U.S. Court of Appeals for the Fifth Circuit (Fifth Circuit) denied several petitions for review of FERC’s authorization of Gas Transmission NW, LLC’s (GTN) GTN Xpress compressor expansion project (Project).  Specifically, the Fifth Circuit (1) denied GTN’s petition for review challenging FERC’s denial of a…