On March 28, 2024, the Midcontinent Independent System Operator, Inc. (“MISO”) submitted a filing to the Federal Energy Regulatory Commission (“FERC”) proposing revisions to its Open Access Transmission, Energy and Operating Reserve Markets Tariff (“Tariff”) to implement a direct loss of load (“DLOL”) based accreditation methodology.  The DLOL methodology will be used to accredit resources for MISO’s annual Planning Resource Auction and to determine a load serving entity’s resource adequacy for each season during the applicable year.  According to MISO, the proposal will better account for how different resources bolster grid reliability during stress periods.  MISO requests that the tariff revisions take effect on September 1, 2024.Continue Reading MISO Seeks to Reform Resource Accreditation Requirements

On March 21, 2024, FERC issued a Notice of Inquiry (“NOI”) seeking additional information on whether the Commission should continue to allow interstate pipelines to package “high value” capacity with non-contiguous and operationally unrelated parcels of capacity in a single auction or open season, thus requiring interested bidders to bid on both segments of capacity.  Initial comments on the NOI are due by June 20, 2024.Continue Reading FERC Initiates Inquiry into Capacity Allocation on Non-Contiguous Pipeline Segments

Executive Summary

On March 21, the Federal Energy Regulatory Commission (FERC or the Commission) issued Order No. 2023-A (Final Rule), which reaffirmed aspects of Order No. 2023 — the Commission’s landmark order updating its generator interconnection procedures. As detailed further in this summary, the Commission largely upheld Order No. 2023, including some of the more controversial aspects of the order, such as penalties and the transmission capacity “heat map,” and provided further clarity on other aspects.Continue Reading Troutman Pepper Summary of FERC Order No. 2023-A on Generator Interconnections

On February 15, 2024, FERC approved two new extreme cold weather Reliability Standards EOP-011-4 (Emergency Operations) and TOP-002-5 (Operations Planning).

This approval is the culmination of a joint inquiry and November 2021 report (“Report”) among FERC, the North American Electric Reliability Corporation (“NERC”), and regional entity staff into a February 2021 cold weather reliability event that affected Texas and the South-Central United States, which was the largest controlled firm load shed event in U.S. history.  The Report recommended reliability standard enhancements to improve extreme cold weather operations, preparedness, and coordination.Continue Reading FERC Approves Extreme Cold Weather Reliability Standards EOP-011-4 and TOP-002-5

On December 19, 2023, the U.S. Court of Appeals for the Sixth Circuit (“Sixth Circuit”), in Electric Power Supply Association; PJM Power Providers Group v. FERC, held that the former Chair of the Federal Energy Regulatory Commission (“FERC”), Richard Glick, exceeded his authority when he reinstated market design features including a stepped demand curve and an $850/MWh price ceiling for the PJM Interconnection, L.L.C. (“PJM”) Reserve Market, without the backing of his colleagues.  This ruling was made by a split Sixth Circuit.  In addition, on February 7, the Sixth Circuit denied Petitioners’ request for panel rehearing of the opinion.Continue Reading Sixth Circuit Finds that FERC Overstepped its Authority on Voluntary Remand of PJM Reserve Market Design Changes

On November 27, 2023, Troutman Pepper’s award-winning Energy Group published a white paper titled, Unlocking U.S. Transmission Upgrades – Are We On the Cusp of Real Progress?  The white paper offers perspectives from a range of transmission experts and examines the latest regulatory and legal changes that could lead to much-needed upgrades to the U.S. transmission grid.  Specifically, the report discusses why transmission grid upgrades are needed, identifies four main obstacles to upgrading the transmission system, provides solutions and benefits to overcoming these obstacles, and concludes with reasons for optimism for the future of the U.S. transmission system.Continue Reading Troutman Pepper Releases White Paper on Transmission Upgrades

On October 19, 2023, FERC issued a Notice of Proposed Rule Making (“NOPR”) proposing various changes to its Electric Quarterly Report (“EQR”) filing requirements. According to FERC, the proposed changes are designed to update the data collection process, improve data quality, increase market transparency, decrease costs of preparing necessary data for submission, and streamline compliance with future filing requirements. The following is a summary of the primary reforms proposed.Continue Reading FERC Proposes Changes to Filing Requirements and Data Collection for Electric Quarterly Report

On June 15, 2023, FERC issued Order No. 895, adopting new regulations permitting regional transmission organizations (“RTO”) and independent system operators (“ISO”) to share, amongst each other, credit-related information of their market participants, and requiring RTOs/ISOs to adopt tariff or similar rules for providing credit-related information sharing in order to better assess market participants’ credit risks.Continue Reading FERC Adopts Regulations to Permit Credit-Related Information Sharing

On March 3, 2023, the House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-WA) and Energy, Climate Change, and Grid Security Subcommittee Chair Jeff Duncan (R-SC) sent a letter to Acting FERC Chairman Willie Phillips and Commissioners asking the Commission to respond to a series of questions related to FERC’s authority as it relates to two policy statements issued in February 2022 and a Notice of Proposed Rulemaking (“NOPR”) issued in December 2022. The two policy statements concern Greenhouse Gas (“GHG”) emissions of natural gas infrastructure projects (see February 18, 2022 Troutman Pepper Insights; February 23, 2022 edition of the WER). The NOPR would require applicants proposing to build electric transmission infrastructure to prepare Environmental Justice Public Engagement Plans.Continue Reading House Republicans Press FERC on Environmental Review Issues