On August 31, 2026, FERC granted The Empire District Electric Company (Empire District) two transmission rate incentives for its portfolio of electric transmission projects in the Southwest Power Pool, Inc. (SPP) region (SPP Project Portfolio): (1) Abandoned Plant Incentive; and (2) construction work in progress (CWIP) Incentive. The Abandoned Plant Incentive will allow Empire District to recover 100% of prudently incurred costs for any SPP Project Portfolio component cancelled or abandoned for reasons beyond its control. The CWIP Incentive will allow Empire District to include 100% of prudently incurred CWIP costs in rate base during the development and construction phase of the SPP Project Portfolio.
FERC Streamlines Reviews to Expedite Actions at Hydropower Projects
On July 16, 2026, the Federal Energy Regulatory Commission (FERC or Commission) unanimously approved measures in two orders streamlining its National Environmental Policy Act (NEPA) review procedures for certain hydropower-related actions with minimal environmental impacts. In the first order, FERC issued a final rule that expands an existing Categorical Exclusion (CE)—a designation that allows an agency to skip preparing a detailed environmental review document—to cover Commission-initiated terminations and revocations of hydropower licenses and exemptions where there will be little to no ground disturbance and little to no change in reservoir conditions or downstream water flows. In the second order, FERC adopted two recreation-related CEs implemented by Tennessee Valley Authority (TVA) that will allow FERC to skip detailed environmental review when authorizing small-scale recreation facility improvements, such as trails, fishing access sites, campgrounds, and parking areas, at FERC-licensed hydropower projects.
In her comments on the orders at the Commission’s July 16 open meeting, Chairman Swett stated that the Commission “must move important approvals forward quickly while ensuring we fully meet our NEPA obligations. Today’s actions are practical, common-sense solutions that streamline our hydropower environmental review process and allow us to better focus our efforts on reviewing large-scale projects.”
FERC Denies Gas Plant Developer’s Waiver Request to Change Equipment Due to Procurement Concerns
On July 2, 2026, the Federal Energy Regulatory Commission (FERC or Commission) denied a waiver request filed by Chestnut Run Energy LLC (Chestnut Run) seeking a one-time limited waiver of certain requirements under PJM Interconnection, L.L.C.’s (PJM) Open Access Transmission Tariff (Tariff) to allow Chestnut Run to implement an equipment change to its proposed combined cycle gas turbine electric generating facility’s (Facility) configuration. Chestnut Run sought waiver because of availability issues with certain equipment outlined in its interconnection application. In denying the request, FERC found Chestnut Run did not demonstrate that the requested waiver would not result in undesirable consequences and noted that the requested waiver would undermine the expeditious nature of PJM’s Reliability Resource Initiative (RRI) process.
FERC Orders Regional Grid Operators to Justify or Reform Tariff Provisions for Interconnection of Large Loads
On June 18, 2026, the Federal Energy Regulatory Commission (“FERC”) issued six show cause orders under Section 206 of the Federal Power Act (“FPA”) to each of the country’s regional transmission operators (“RTOs”) and independent system organizations (“ISOs”), along with their transmission owners (collectively, the “Show Cause Orders”). FERC issued the Show Cause Orders as an initial response to the Secretary of Energy’s October 2025 letter directing FERC to initiate an Advance Notice of Proposed Rulemaking (“ANOPR”) presenting potential reforms to ensure the timely and orderly interconnection or large loads to the transmission system. The ANOPR docket, Docket No. RM26-4-000, generated more than 3,500 pages of public comments. The Show Cause Orders also come on the heels of a series of FERC’s actions over the past year designed to address large load growth. These actions include a December 2025 FERC order directing PJM Interconnection, L.L.C. (“PJM”) to adopt clear, transparent tariff rules for large energy users located at or near generation facilities, FERC’s January 2026 approval of Southwest Power Pool, Inc.’s (“SPP”) High Impact Large Load and High Impact Large Load Generation Assessment processes, as well as FERC’s June 2026 approval of SPP’s Conditional High Impact Large Load proposal.
DC Circuit Dismisses Solar Developers’ Challenges to SPP Network Upgrade Cost Allocation for Lack of Standing
On May 19, 2026, the U.S. Court of Appeals for the District of Columbia Circuit (DC Circuit) dismissed Cage Ranch Solar LLC’s and Cage Ranch Solar II, LLC’s (collectively, Cage Ranch) consolidated petitions for review of FERC orders denying Cage Ranch’s complaint and waiver request, which sought to set aside a deadline by which Southwest Power Pool, Inc.’s (SPP) tariff (Tariff) required Cage Ranch to post financial security for network upgrade costs to support its interconnection requests and maintain its queue position. The DC Circuit dismissed the petitions for failure to demonstrate a concrete injury in fact necessary to establish Article III standing.