On December 16, 2022, FERC again rejected the Midcontinent Independent System Operator Inc. (“MISO”) proposal for Transmission Owners to self-fund Necessary Upgrades to connect Merchant High Voltage Direct Current (“HVDC”) transmission lines into MISO and addressed arguments on rehearing. Commissioner Danly dissented and Commissioner Christie concurred in separate statements. Chairman Glick did not participate.Continue Reading On Rehearing FERC Again Rejects MISO Proposal for Transmission Owners to Self-Fund Necessary Upgrades to Connect Merchant HVDC Lines
Sidney Villanueva
Various State Attorneys General Urge FERC to Revoke Vanguard’s Blank Waiver to Acquire Utility Securities
On November 28, 2022, various State Attorneys General intervened to protest (the “Protest”) a filing made by The Vanguard Group, Inc., along with its affiliated entities (collectively, “Vanguard”) requesting to extend the blanket waiver authorization granted by the Commission for acquisitions of voting securities of publicly traded utilities. Utah, Indiana, Alabama, Arkansas, Kentucky, Louisiana, Mississippi, Montana, Nebraska, Ohio, South Carolina, South Dakota, and Texas, by and through their Attorneys General (collectively, “the States”), requested that the Commission deny Vanguard’s application for blanket reauthorization and set the proceeding for hearing.Continue Reading Various State Attorneys General Urge FERC to Revoke Vanguard’s Blank Waiver to Acquire Utility Securities
FERC Authorizes Commonwealth LNG Export Facility
On November 17, 2022, FERC approved an application authorizing Commonwealth LNG, LLC (“Commonwealth”) to site, construct, and operate a liquified natural gas (“LNG”) export terminal in Cameron Parish, Louisiana. The LNG facility’s authorization drew concurring opinions from four of the Commissioners.Continue Reading FERC Authorizes Commonwealth LNG Export Facility
FERC Affirms Use of Certain Price Indices for Justifying Prices above WECC Soft Price Cap
On October 20, 2022, the Federal Energy Regulatory Commission (“FERC”) issued an Order rejecting a request by the California Public Utilities Commission (“CPUC”) seeking a rehearing of a Justification Order. FERC’s Order declining rehearing comes after an October 7, 2020 filing where Tri-State Generation and Transmission Association, Inc. (“Tri-State”) filed its justification for spot market sales that exceeded the Western Electricity Coordinating Council (“WECC”) soft price cap of $1,000/MWh during the summer months of 2020. On May 20, 2022, the Commission issued an order finding that Tri-State had sufficient justification for certain spot market sales above the soft price cap but had not justified amounts charged above the relevant index price. Ultimately, the Commission rejected the CPUC’s rehearing request.Continue Reading FERC Affirms Use of Certain Price Indices for Justifying Prices above WECC Soft Price Cap
FERC Issues Show Cause Order and NOPR on Credit Risk
On July 28, 2022, FERC issued a show cause order indicating that several regional transmission organization (“RTO”) and independent system operator (“ISO”) tariffs appear to be unjust and unreasonable because they lack certain credit risk management practices. FERC also issued a related Notice of Proposed Rulemaking (“NOPR”) to allow all market operators to share credit-related information among themselves so that they can more accurately assess market participants’ credit risks. Both actions aim to improve credit risk management in organized wholesale electric power markets.
Continue Reading FERC Issues Show Cause Order and NOPR on Credit Risk
Summary of FERC Interconnection NOPR
On June 16, FERC issued a Notice of Proposed Rulemaking (NOPR) focused on updating procedures for interconnecting large generating facilities (20MW and above) and small generating facilities (under 20MW). The NOPR proposes significant updates to FERC’s pro forma interconnection procedures, which were first established in the early 2000s. In the intervening years, however, the nation’s generation fleet has evolved, new technologies have emerged, and interconnection wait-times have steadily increased. The NOPR proposes various reforms to help address growing interconnection queue backlogs and process delays. Comments are due 100 days after the NOPR’s publication in the Federal Register. Reply comments are due 130 days after publication in the Federal Register.
Below is a summary of the primary reforms outlined in the NOPR, which fall into three broad categories: (1) implement a first-ready, first-served cluster study process; (2) increase the speed of interconnection queue processing; and (3) incorporate technological advancements into the interconnection process. FERC’s proposed reforms are discussed further in the full summary, linked below.
Continue Reading Summary of FERC Interconnection NOPR
A Divided FERC Accepts ISO-NE’s Request to End its MOPR in Two Years
On May 27, 2022, a divided FERC ultimately agreed to allow ISO New England Inc. (“ISO-NE”) to sunset its current minimum offer price rule (“MOPR”) as part of its capacity market. During the next two capacity auctions, ISO-NE will permit a specified quantity of resources to enter the market without being subject to buyer-side market power mitigation review. Thereafter, ISO-NE will replace the current MOPR with a reformed buyer-side market power mitigation construct (the “MOPR Reforms”). Each of the five commissioners wrote separately, with Chairman Richard Glick, Commissioners Allison Clements and Willie Phillips, and Commissioner Mark Christie writing in concurrence and Commissioner James Daly writing in dissent.
Continue Reading A Divided FERC Accepts ISO-NE’s Request to End its MOPR in Two Years
FERC Clarifies Order on Transmission Line Ratings
On May 19, 2022, FERC issued Order No. 881-A responding to arguments raised on rehearing of Order No. 881, which revised the pro forma OATT and FERC regulations to increase the accuracy and transparency of electric transmission line ratings. FERC ultimately sustained the result of Order No. 881, denying all requests for rehearing, but did provide a number of clarifications regarding the new requirements.
Continue Reading FERC Clarifies Order on Transmission Line Ratings
Declining to Propose a Generic Solution, FERC Directs RTOs/ISOs to File Reports on System Needs
On April 21, 2022, FERC directed each regional transmission organization/independent system operator (“RTO/ISO”) to submit information related to their wholesale markets, including how changing resource mixes and load profiles are affecting system needs. FERC stated it will review the reports and any public comments filed to determine whether further action is appropriate.
Continue Reading Declining to Propose a Generic Solution, FERC Directs RTOs/ISOs to File Reports on System Needs
Summary of FERC’s April 2022 NOPR on Transmission Planning, Cost Allocation, and Generator Interconnection
On April 21, the Federal Energy Regulatory Commission (FERC or Commission) released its Notice of Proposed Rulemaking (NOPR) to reform its policies regarding Regional Transmission Planning and Cost Allocation. The NOPR follows from an Advanced Notice of Proposed Rulemaking (ANOPR) on these reforms, which FERC issued in July 2021. Representing FERC’s most significant action on transmission planning and cost allocation in more than a decade, the NOPR outlines six major proposals:
Continue Reading Summary of FERC’s April 2022 NOPR on Transmission Planning, Cost Allocation, and Generator Interconnection