On January 13, 2026, the United States Court of Appeals for the District of Columbia Circuit (D.C. Circuit) in FERC v. PJM Interconnection, LLC., et al., held that FERC erred in concluding that a prior decision of the United States Court of Appeals for the Third Circuit (Third Circuit) foreclosed its authority under Section 206 of the Federal Power Act (FPA) to review and potentially modify PJM’s 2024/2025 capacity auction results. The court ruled that the Third Circuit’s application of the filed‑rate doctrine to PJM’s tariff amendment under Section 205 did not decide whether FERC could, in a separate proceeding, determine that the re‑run auction’s outcome was unjust and unreasonable and grant relief under Section 206.
FERC Terminates Au Train Hydroelectric Project License by Implied Surrender
On December 29, 2025, FERC terminated the hydropower license for the 0.9-megawatt Au Train Hydroelectric Project (FERC Project No. 10856), located on the Au Train River in Alger County, Michigan (Termination Order). FERC concluded that termination of the license by “implied surrender” was warranted because the project’s licensee, UP Hydro, LLC (UP Hydro), had abandoned good-faith operation of the project through years of safety violations, loss of control over project lands, and financial collapse. The order ends more than two decades of federal oversight over the project and transfers regulatory authority to the State of Michigan to oversee the decommissioning of the dam.
FERC Approves SPP Tariff Revisions Allowing Real-Time Dispatchable Interchange Transactions
On December 10, 2025, FERC accepted Southwest Power Pool, Inc.’s (SPP) proposed tariff revision to extend its existing day-ahead market dispatchable transaction model into the real-time balancing market (RTBM). The Commission found the proposal to be just and reasonable and not unduly discriminatory or preferential, rejecting protests that raised concerns
Court Denies Injunction Seeking to Halt FERC Enforcement Proceedings
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.
FERC Grants ISO-NE Waiver in Capacity Scarcity Penalty Case
On October 31, 2025, FERC granted ISO New England’s (ISO-NE) request for a limited waiver of its Tariff and Billing Policy to refund, approximately $68,000 in Capacity Performance charges to Brookfield White Pine Hydro LLC (Brookfield). The waiver relates to six five-minute intervals during a June 24, 2025 Capacity Scarcity Condition in which Harris Hydro Station’s Unit 2 (Harris 2) was manually held below its EcoMax[1] because ISO-NE allowed a non-commercial Large Generating Facility to operate on a constrained transmission line, thereby limiting Harris 2’s output and triggering an underperformance assessment.
NextEra Receives FERC Waiver to Facilitate Nuclear Plant Restart in Iowa
On August 25, 2025, the Federal Energy Regulatory Commission (“FERC”) granted NextEra Duane Arnold, LLC (“NEDA”) a waiver of certain sections of the Midcontinent Independent System Operator, Inc.’s (“MISO”) tariff to use MISO’s generating facility replacement process for the recommissioning of the Duane Arnold nuclear power facility (“Project”) in Palo, Iowa. The order also extends the Project’s commercial operation date to December 31, 2029.
Laura Swett and David LaCerte Nominated for Federal Energy Regulatory Commission Commissioner Seats
On June 2, 2025, President Donald Trump announced the nomination of Laura Swett to occupy the Federal Energy Regulatory Commission (“FERC”) seat previously held by Chairman Mark Christie. Following this, on July 16, 2025, Trump nominated David LaCerte for another vacant commissioner position at FERC. Swett is currently practicing as an energy attorney at the law firm Vinson & Elkins, while LaCerte serves as the principal White House liaison and senior advisor to the director of the U.S. Office of Personnel Management.
Ninth Circuit Upholds FERC’s Denial of RTO Incentive Adder for California Utilities Due to Mandatory CAISO Participation
On July 11, 2025, the U.S. Court of Appeals for the Ninth Circuit (“Ninth Circuit”) issued an opinion in Pacific Gas & Electric Company v. FERC, addressing a challenge by Pacific Gas & Electric Company (“PG&E”), Southern California Edison, and San Diego Gas & Electric Company (collectively, the “California Utilities”) to a Federal Energy Regulatory Commission (“FERC”) order denying PG&E’s request for an “RTO Adder” for its participation in the California Independent System Operator Corporation (“CAISO”). The Utilities argued that they were entitled to this incentive under section 219(c) of the Federal Power Act (“FPA”), but FERC determined that their participation in CAISO was not voluntary due to California law mandating their participation, and thus they were ineligible for the adder. On appeal, the Ninth Circuit affirmed FERC’s order.
On Rehearing, FERC Upholds Approval of PJM’s Proposed Offer Cap Tariff Revisions
On June 26, 2025, FERC upheld PJM Interconnection, L.L.C.’s (PJM) proposal to revise its Capacity Performance Quantifiable Risk (CPQR) Offer Cap. Several public interest organizations and PJM’s Independent Market Monitor (Market Monitor) filed requests for rehearing, arguing that PJM’s tariff changes did not adequately differentiate between costs directly related to capacity commitments and those incurred for other reasons, potentially leading to unfair rates. FERC disagreed, stating that PJM’s definition of CPQR provides a clear principle for identifying relevant costs and prevents sellers from inflating offer caps with unrelated expenses. The Commission emphasized that the review process by PJM and the Market Monitor ensures adherence to this principle, maintaining fair and competitive market practices.
Fifth Circuit Finds ANR Pipeline’s Tariff Does Not Require Simultaneous Delivery for Short-Notice Shipments
On May 22, 2025, the U.S. Court of Appeals for the Fifth Circuit (“Fifth Circuit”) addressed a dispute between ANR Pipeline Company (“ANR”) and FERC. The case centered on the interpretation of ANR’s tariff and whether it required shippers to deliver and take gas simultaneously, even for short-notice shipments. The Fifth Circuit denied ANR Pipeline Company’s petition for review, affirming FERC’s decision that ANR’s tariff did not require simultaneous delivery for short-notice shipments. The court found the tariff ambiguous and emphasized ANR’s longstanding practice of not requiring simultaneous delivery, which supported FERC’s position.