On May 21, 2026, the Federal Energy Regulatory Commission (FERC) proposed changes to its natural gas blanket certificate regulations to expand the scope and scale of projects that interstate natural gas pipelines may construct without a case-specific authorization order, and to increase the cost limits for such projects. In a companion order issued the same day, FERC extended a previously granted temporary waiver so that projects constructed and placed in service by May 31, 2028 may continue to rely on an increased prior-notice cost limit.
Sahara Shrestha
Sahara represents clients in the hydropower, natural gas, and electric utility sector before the Federal Energy Regulatory Commission (FERC) and the D.C. Circuit. She advises hydropower clients on all aspects of FERC licensing and compliance under the Federal Power Act, as well as issues arising under other federal statutes, including the Clean Water Act, National Environmental Policy Act, National Historic Preservation Act, and Endangered Species Act. Sahara also advises natural gas clients in certificate proceedings and compliance matters, and advises electric utility clients on transmission, interconnection, and market design issues.
Congress Enacts S. 1020 to Extend Hydropower Construction Deadlines
On May 11, 2026, the President signed into law S. 1020, sponsored by Senators Steve Daines (R-Mont.) and John Fetterman (D-Pa.), which modifies the timelines under which certain federally licensed hydropower projects must begin construction. The law focuses on a defined set of “covered projects” and provides the Federal Energy Regulatory Commission (FERC) with additional authority to extend construction‑start deadlines beyond what is currently permitted under the Federal Power Act.
FERC Issues Draft Revised Cybersecurity Guidance for Hydropower Projects (Section 9.0)
On April 17, 2026, staff of the Federal Energy Regulatory Commission (FERC or Commission) released a draft revised Section 9.0 of its Security Program for Hydropower Guidance addressing cybersecurity for hydropower projects. FERC staff explains that the revisions are intended to modernize the existing guidance to reflect technological advancements, lessons learned from inspections and audits, and evolving practices for protecting cyber and control-system assets. Comments on the draft are due Monday, May 18, 2026.
FERC Commits to June 2026 Action in Large Load Interconnection Rulemaking
On April 16, 2026, FERC announced that it will move forward with reforms to govern how large loads interconnect to the interstate transmission system, committing to take action in its pending rulemaking in Docket No. RM26‑4‑000 by the end of June 2026. In its order, FERC stated that it will address the rapid growth of large loads, including data centers, by establishing a framework to ensure that such loads can connect to the transmission system in a timely, orderly, and non‑discriminatory manner, and that it intends to do so in a way that is “quick, efficient, and legally durable.”
FERC Approves Golden Triangle’s Spindletop Expansion Project, Reaffirms Market-Based Rates
On March 19, 2026, the Federal Energy Regulatory Commission (“FERC”) granted Golden Triangle Storage, LLC (“Golden Triangle”) a certificate of public convenience and necessity under section 7(c) of the Natural Gas Act for its Spindletop Expansion Project (“Spindletop” or “Project”) in Jefferson County, Texas, subject to detailed engineering and environmental conditions. In the same order, FERC reaffirmed Golden Triangle’s authority to charge market-based rates for storage and hub services and granted associated waivers of cost-based accounting and reporting requirements.
FERC Approves SPP “System Support Resource” Program to Manage Generator Retirements
On March 19, 2026, FERC approved Southwest Power Pool, Inc.’s (SPP) System Support Resource (SSR) program to allow SPP, under specified conditions, to keep certain generating units that plan to retire temporarily online when they are needed to maintain reliability of the bulk electric system in the SPP region. In doing so, FERC found that SPP’s proposal appropriately balanced the need to maintain reliability with generator owners’ ability to implement their business plans.
Senators Introduce REWIRE Act of 2026 to Address Electric Grid Capacity and Planning
On March 2, 2026, U.S. Senators Dave McCormick (R‑PA) and Peter Welch (D‑VT) introduced the Reconductoring Existing Wires for Infrastructure Reliability and Expansion (REWIRE) Act of 2026, a bipartisan bill that would modify federal permitting rules and address upgrades to the existing U.S. electric transmission system. The legislation proposes, among other things, to create a National Environmental Policy Act (NEPA) categorical exclusion for certain grid capacity projects in existing rights-of-way, direct FERC to revise its rules on return on equity for advanced transmission conductors, authorize additional uses of the Department of Energy (DOE) State Energy Program funds, and establish new DOE programs for grid modeling and technical assistance.
FERC Proposes NEPA Categorical Exclusion for Certain Hydropower Terminations and Revocations
On February 19, 2026, the Federal Energy Regulatory Commission (FERC) issued a notice of proposed rulemaking that would expand an existing National Environmental Policy Act (NEPA) categorical exclusion to cover certain terminations and revocations of hydropower licenses and exemptions. The proposal would allow FERC to rely on a categorical exclusion, rather than preparing an Environmental Assessment (EA) or Environmental Impact Statement (EIS), for license and exemption terminations or revocations that involve only minor or no ground-disturbing activity and minor or no changes in reservoir conditions and downstream flows.
FERC Approves 1,200‑MW Pumped Storage Project on Former Smelter Site
On January 22, 2026, the Federal Energy Regulatory Commission (Commission or FERC) issued a 40‑year original license to FFP Project 101, LLC (FFP) to construct and operate a 1,200‑megawatt pumped storage hydropower facility, the Goldendale Energy Storage Project, in Klickitat County, Washington. FERC found that, with conditions, the closed‑loop pumped storage project will add significant long‑duration capacity and flexibility to help integrate renewable resources in the Western grid.
D.C. Circuit Confirms FERC’s Section 206 Authority to Reprice PJM Capacity Auctions Despite Third Circuit Section 205 Ruling
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.