On January 21, 2022, FERC accepted revisions to the Southeast Energy Exchange Market (“SEEM”) Agreement consistent with commitments made by SEEM members in response to two deficiency letters it issued before the SEEM Agreement went into effect by operation of law.
Continue Reading FERC Accepts Tariff Revisions to Southeast Energy Exchange Market, Drawing Concurrences from Chairman Glick and Commissioner Clements

On December 17, 2021, FERC affirmed a Public Utility Regulatory Policies Act of 1978 (“PURPA”) qualifying facility (“QF”) self-certification for the Shields Valley Solar Facility (“Shields Valley”), a hybrid solar and battery project relying on inverters to limit its net power production capacity.  In doing so, FERC reiterated its finding in its Broadview Solar rehearing order that a QF owner can use MW net output at the point of interconnection, taking into account inverter losses and other components to produce electricity, in determining whether a facility meets the 80 MW statutory maximum for QF status.  Commissioner James Danly wrote separately in dissent explaining his view that Shields Valley plainly exceeds the statutory capacity limit for a QF.
Continue Reading FERC Affirms QF Self-Certification for a Hybrid Solar and Battery Project, Prompting Dissent from Commissioner Danly

On December 16, 2021, FERC ordered Energy Transfer Partners, L.P. and its subsidiary Rover Pipeline, LLC (“Rover Pipeline”) to explain why it should not pay a $40 million civil penalty for alleged violations of the Natural Gas Act, and the pipeline’s certificate order, during construction of its 711 mile interstate natural gas pipeline.

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On November 30, 2021, FERC issued and order accepting a California Independent System Operator Corporation (“CAISO”) tariff filing designed to clarify its market rules for hybrid and co-located resources. CAISO proposed two areas of revisions: 1) enhancing market participation for hybrid and co-located resources; and 2) allowing for the use of multiple aggregate capability constraints by co-located resources at a single generating facility in CAISO. Commissioner James Danly wrote separately questioning whether hybrid resources should continue to be exempted from CAISO’s resource adequacy requirements, but agreed the revisions were just and reasonable.
Continue Reading FERC Accepts CAISO Tariff Changes for Co-located and Hybrid Resources

On November 18, 2021, FERC issued a Notice of Inquiry (“NOI”) inviting comments on reactive power capability compensation and market design.  The NOI highlights various issues with reactive power filings that have resulted from significant changes to electric markets and the generation resource mix, including the potential for overcompensation.  The NOI seeks comment on various aspects of reactive power compensation, as well as potential alternative approaches that could be used to develop reactive power capability revenue requirements.  
Continue Reading FERC Issues Notice of Inquiry on Reactive Power

On October 26, 2021, FERC issued an order accepting a California Independent System Operator Corporation (“CAISO”) tariff filing designed to improve CAISO’s markets by optimizing the performance of storage and demand response resources. CAISO proposed three distinct tariff revisions: (1) creating biddable state of charge parameters for energy storage; (2) applying market power mitigation to energy storage; and (3) enabling demand response resources to specify maximum daily run times.
Continue Reading FERC Accepts CAISO Proposal Regarding Storage and Demand Response Resources

On October 21, 2021, FERC denied multiple complaints against Panhandle Eastern Pipe Line Company, LP (“Panhandle”) regarding its refusal to waive all penalties associated with Operational Flow Orders (“OFO”) issued during the extreme Storm Uri weather event in February 2021. In doing so, FERC upheld penalties levied against Panhandle customers who argued they were forced to use the pipeline contrary to the OFO order to ensure reliable service for their own end-use customers.
Continue Reading FERC Rejects Attempts to Waive $75 Million in Pipeline Penalties During Storm Uri

On September 23, 2021, FERC issued an order rejecting a unilateral offer of settlement regarding the compensation for reactive power by Panda Hummel Station LLC (“Panda”) under Schedule 2 of the PJM Interconnection LLC (“PJM”) OATT, remanding the proceeding to the Chief Administrative Law Judge (“Chief ALJ”) to resume hearing procedures.  FERC found Panda’s proposed methodology flawed and inconsistent with FERC policy. 
Continue Reading FERC Rejects Reactive Compensation Settlement, Finding Methodology Flawed

On September 7, 2021, FERC staff issued a whitepaper to frame discussions ahead of two technical conferences planning to discuss potential ancillary services reforms.  The whitepaper summarizes approaches that RTOs/ISOs are currently evaluating to reform energy and ancillary services markets to address the need for greater operational flexibility, including increasing shortage prices, procuring higher quantities of existing “traditional” ancillary services products (like an operating reserve demand curve), and creating new ancillary services products.
Continue Reading FERC Staff Issues Whitepaper on Energy and Ancillary Services Market Reforms Ahead of Technical Conferences