At FERC’s monthly meeting held on January 23, 2020, Commissioner Bernard L. McNamee announced he will not seek reappointment as commissioner after his current term ends on June 30, 2020. Commissioner McNamee indicated that he will serve through the end of his term or later, if needed to help maintain a quorum at FERC in 2020.

Continue Reading Commissioner McNamee Announces He Will Not Seek Reappointment

On January 10, 2020, FERC issued two separate orders approving Stipulation and Consent Agreements (“Agreements”) between the Office of Enforcement (“Enforcement”) and Emera Energy Incorporated (“Emera Energy”) and Exelon Generation Company, LLC (“Exelon”), respectively. Both Agreements relate to alleged violations of ISO New England Inc.’s (“ISO-NE”) Tariff. Specifically, with respect to Emera Energy, FERC alleged that Emera Energy violated the Tariff’s requirement that evidence supporting Fuel Price Adjustment Requests (“FPA Requests”) must reflect an arm’s length transaction. With respect to Exelon, FERC alleged that Exelon misreported the type and quantity of start-up fuel used by its Mystic 7 generating unit (“Mystic 7”). In both cases, FERC found that the Agreements were in the public interest and the Enforcement investigations were resolved on fair and equitable terms.

Continue Reading FERC Issues Two Orders Approving Civil Penalties and Disgorgement of Profits for Violations of ISO New England Inc.’s Tariff

On December 30, 2019, FERC accepted tariff revisions by the California Independent System Operator Corporation (“CAISO”) to apply three previously accepted-interim provisions designed to address the Aliso Canyon natural gas storage facility’s (“Aliso Canyon”) continued operational limitations and impacts on CAISO’s system.

Continue Reading FERC Accepts CAISO’s Tariff Revisions Addressing Aliso Canyon Natural Gas Constraints

On December 10, 2019 FERC accepted ISO New England Inc.’s (“ISO-NE”) proposed revisions to its Tariff to enhance the competitive transmission solicitation process and make additional improvements to ISO-NE’s transmission planning process (“Transmission Planning Improvements”). ISO-NE’s proposal was joined by New England Power Pool Participants Committee and the Participating Transmission Owners Administrative Committee (collectively, “Filing Parties”). The Filing Parties’ Transmission Planning Improvements went into effect on December 10, 2019.

Continue Reading FERC Accepts Changes to ISO-NE’s Competitive Transmission Solicitation Process

On November 26, 2019, FERC rejected, without prejudice, various filings from Basin Electric Power Cooperative (“Basin”) to establish FERC-jurisdictional rates, terms, and conditions of wholesale power and transmission service ahead of certain anticipated changes among Basin’s member cooperatives that would trigger FERC jurisdiction. FERC generally rejected the filings as “patently” deficient.
Continue Reading FERC Rejects Basin Electric Power Cooperative’s Filings Ahead of Anticipated FERC Jurisdictional Status

On November 21, 2019, FERC’s Office of Enforcement (“OE”) released its thirteenth annual Report on Enforcement (“Report”) to provide an update about its activities during the last fiscal year (i.e., 12-months ending September 30, 2019; hereinafter “FY2019”). The Report provides an overview of, and statistics reflecting, the activities of OE’s Divisions of Investigations (“DOI”), Division of Audits and Accounting (“DAA”), Division of Analytics and Surveillance (“DAS”), and Division of Energy Market Oversight (“DEMO”).
Continue Reading FERC Issues 2019 Report on Enforcement

On November 8, 2019, Representative Frank Pallone, Jr. (D-NJ), Chairman of the House  Energy and Commerce Committee, and Representative Bobby L. Rush (D-IL), Chairman of the Subcommittee on Energy (collectively the “Chairmen”), wrote a letter to FERC Chairman Neil Chatterjee expressing their concerns regarding FERC’s proposed changes to sections 201 and 210 of the Public Utility Regulatory Policies Act (“PURPA”).
Continue Reading House Energy and Commerce Chairs Pen Letter to FERC on Proposed PURPA Reform

On November 5, 2019, the Senate Committee on Energy & Natural Resources (“Committee”) held a hearing to consider the nomination of James Danly as a FERC Commissioner. Mr. Danly, currently FERC’s general counsel, was nominated to fill the vacancy on the Commission left by the passing of FERC Chairman Kevin McIntyre in January of this year.

Continue Reading FERC Nominee James Danly Testifies Before Senate Committee on Energy & Natural Resources

On October 28, 2019, the Attorneys General of California, Connecticut, Delaware, the District of Columbia, Maryland, Massachusetts, Michigan, North Carolina, Oregon, Pennsylvania, and Rhode Island (collectively “State AGs”) wrote to FERC to discuss opportunities for the State AGs and FERC to work cooperatively to promote state-level clean energy policies that benefit consumers and enhance grid reliability. The State AGs expressed an “urgent need” for further action to address climate change’s “massive” environmental, health, and economic harms in their states, and noted that the Commission’s actions related to market design, natural gas siting, and grid reliability significantly impact each state’s ability to achieve their clean energy goals.

Continue Reading State Attorneys General Urge FERC Action on Clean Energy Priorities

On October 17, 2019, FERC issued its 2019-2020 Winter Energy Market Assessment (“Assessment”), which is a summary of staff’s expectations about market preparedness, including a high‐level assessment of the risks and challenges anticipated in the coming winter operating season. In its 2019-2020 Assessment, FERC highlighted that: 1) the National Oceanic and Atmospheric Administration (“NOAA”) forecasts a warmer than average winter; 2) natural gas storage levels are expected to be average going into the winter; 3) natural gas futures prices are lower than last winter; 4) a diverse and changing generation resource mix will maintain electric reliability this winter; and 5) expected winter reserve margins exceed reference levels in all regions.

Continue Reading FERC Issues 2019-2020 Winter Energy Market Assessment