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.
FERC Approves PJM’s Tariff Revisions for an Expedited Interconnection Track
On June 9, 2026, FERC accepted PJM Interconnection, L.L.C.’s (PJM) proposal to establish an Expedited Interconnection Track process for Generating Facilities (EIT Process). In doing so, FERC found that the EIT Process will help address PJM’s imminent resource adequacy needs by establishing an expedited interconnection process for a limited number of resources that are able to bring significant capacity onto the system quickly. The revisions were accepted effective June 10, 2026, and July 31, 2026.
PJM Seeks Extension of Price Collar for Capacity Auctions
On February 27, 2026, PJM Interconnection, L.L.C. (“PJM”) filed an amendment to its Open Access Transmission Tariff (“Tariff”) to extend the price cap and price floor for all Reliability Pricing Model (“RPM”) Auctions through the 2028/2029 and 2029/2030 Delivery Years.
Senate Proposes Bill to Exempt Isolated Large Loads from Federal Regulation
On January 7, 2026, Senator Tom Cotton (R-AR) introduced the Decentralized Access to Technology Alternatives Act (DATA Act) (S.3585), that if adopted, would exempt isolated large loads from regulation under the Federal Power Act (FPA) and the implementing regulations of FERC and the Department of Energy (DOE). Specifically, the DATA ACT would amend the FPA to create the consumer-regulated electric utilities (CREU) category and then broadly remove qualifying CREUs from federal energy regulation.
FERC Accepts SPP’s Revisions to Its Western Energy Imbalance Tariff Incorporating a Reliability-Based Market Hold Settlement Mechanism
On June 20, 2025, FERC approved Southwest Power Pool, Inc.’s (SPP) revisions to its Western Energy Imbalance Service (WEIS) tariff to allow a participating balancing authority to initiate a market hold due to reliability concerns and to specify how SPP will settle the market in the event of such a market hold. FERC found that the revisions will allow participating balancing authorities to timely respond to reliability-based events while avoiding disruptions to the WEIS market.
FERC Reaffirms MISO Interconnection Queue Cap on Rehearing
On May 27, 2025, FERC addressed arguments raised on rehearing of a January 30, 2025 order, which accepted the Midcontinent Independent System Operator, Inc.’s (“MISO”) proposal to modify its generator interconnection study process by implementing a queue cap and exemptions to that cap (the “Queue Cap Order”). In doing so, FERC reaffirmed that MISO’s proposed queue cap and exemptions align with Order No. 2003’s independent entity variations for regional transmission organizations and independent system operators.
FERC Accepts SPP’s Tariff Revisions Regarding Distribution of Make-Whole Payments for Self-Committed Resources
On March 27, 2025, FERC approved Southwest Power Pool, Inc.’s (SPP) tariff revisions to remove the opportunity for resources that self-commit during the Reliability Unit Commitment Process (RUC) to avoid contributing to RUC system-wide make-whole payments. In doing so, FERC found the revisions are consistent with cost causation principles.
FERC Accepts SPP’s Tariff Revisions Incorporating a Mark-to-Auction Mechanism for SPP’s Transmission Congestion Rights Market
On March 20, 2025, FERC approved Southwest Power Pool, Inc.’s (“SPP”) tariff revisions to incorporate a mark-to-auction collateral requirement for SPP’s Transmission Congestion Rights (“TCR”) market. In doing so, FERC found the revisions will mitigate market risk caused by market participants’ declining TCR values. However, the Commission declined SPP’s request to terminate the related ongoing show cause proceeding because the proposed tariff does not fully address the Commission’s concerns.
FERC Institutes Show Cause Proceeding on Co-Location Issues in PJM
On February 20, 2025, FERC found that the PJM Interconnection, L.L.C. (“PJM”) Open Access Transmission Tariff (“OATT”) appears to be unjust and unreasonable because it does not address with clarity or consistency the rates, terms, and conditions of service that apply to co-location arrangements and therefore directed PJM to show cause as to why the OATT, the Amended and Restated Operating Agreement of PJM, and Reliability Assurance Agreement Among Load Serving Entities in the PJM region (collectively, “Tariffs”) are just and reasonable or explain what changes to the Tariffs would remedy FERC’s concerns regarding co-location arrangements. In a separate order issued on February 20, 2025, FERC also rejected a proposal from certain Exelon transmission-owning utilities (“Exelon Companies”) to revise their transmission rate schedules attached to the PJM OATT to clarify that co-located load that is synchronized to the grid must be designated as network load or receive point-to-point transmission service.
FERC Accepts NYISO’s Proposal Regarding their 2025-2029 Demand Curve Reset
On January 28, 2025, FERC accepted the New York Independent System Operator, Inc.’s (“NYISO”) proposed revisions to its Market Administration and Control Area Services Tariff (“Services Tariff”). The revisions define the demand curves in the Installed Capacity (“ICAP”) Market for the 2025/2026 Capability Year and implement a quadrennial process, known as the Demand Curve reset (“DCR”), which outlines the methodologies and inputs for subsequent annual updates to the ICAP Demand Curves for the 2026/2027, 2027/2028, and 2028/2029 Capability Years.