On June 1, 2016, FERC issued First ECA Midstream LLC (“FECAM”) a certificate of public convenience and necessity to operate an existing 16-mile, 4- to 16-inch-diameter pipeline as a jurisdictional interstate pipeline. Notably, FERC denied FECAM’s request to file two negotiated rate agreements in lieu of an open access tariff, stating that an exception to FERC’s policies favoring open access was not warranted where FECAM was operating a pipeline to transport gas for third parties and where shippers did not have contractual rights and long-standing arrangements already in place.

On June 3, 2016, FERC accepted a compliance filing made by the New York Independent System Operator, Inc. (“NYISO”) providing for changes to the NYISO tariff in order to expand participation in NYISO’s Day-Ahead Demand Response Program (“DADRP”) to include demand response from behind-the-meter generation. The tariff changes will become effective 60 days after the issuance of the June 3, 2016 order.

On June 1, 2016, FERC granted the joint application of Elba Liquefaction Company, L.L.C. (“ELC”) and Southern LNG Company, L.L.C. (“Southern LNG”) requesting authorization to construct and operate new natural gas liquefaction and export facilities at Southern LNG’s existing liquefied natural gas (“LNG”) terminal located on Elba Island, Chatham County, Georgia (the “Elba Liquefaction Project”). FERC also granted Southern LNG’s request to abandon its LNG truck loading facilities at the terminal. In the same order, FERC granted the separate application of Elba Express Company, L.L.C. (“Elba Express”) to add north-to-south transportation capacity to the existing Elba Express pipeline system by constructing and operating additional compressors at the existing Hartwell Compressor Station in Hart County, Georgia, and constructing and operating two new compressor stations in Jefferson and Effingham Counties, Georgia (the “Elba Express Modification Project”). Elba Express proposed this expansion in part to enable Elba Express to transport domestic natural gas on a firm basis to the Elba Liquefaction Project.

On June 2, 2016, FERC issued a declaratory order finding Williams Field Services – Gulf Coast Company LP’s (“WGC”) proposed offshore facilities located on Transcontinental Gas Pipe Line Corporation’s (“Transco”) existing jurisdictional platform, including metering equipment on the platform and a 5.8-mile, 12-inch-diameter pipeline extending from that platform, to be gathering facilities exempt from FERC’s jurisdiction. Notably, FERC held that WGC’s proposed pipeline will primarily function as a gathering facility, despite being downstream from jurisdictional facilities, because WGC will not commingle gas that has moved through jurisdictional facilities.

On June 1, 2016, FERC granted the request by MoGas Pipeline LLC (“MoGas”) for abandonment authority to transfer by sale its jurisdictional natural gas pipeline facilities to an affiliate, CorEnergy Pipeline Company, LLC (“CorEnergy”), and certificate authority to lease the facilities back for continued operation by MoGas. MoGas stated that if its parent, Corridor MoGas, Inc. (“Corridor MoGas”), sells a majority stake in MoGas to an unaffiliated third party, the income from MoGas’s lease payments will qualify as non-taxable Real Estate Investment Trust (“REIT”) rental income.

On May 31, 2016, FERC rejected PJM Interconnection, L.L.C.’s (“PJM”) proposal to excuse a Capacity Performance Resource from Non-Performance Charges during emergency conditions. PJM proposed to excuse such resources from Non-Performance Charges when the resource followed PJM’s dispatch instructions and operated at a ramp rate PJM had previously approved. In refusing to allow the proposed exemption, FERC emphasized that “[i]t is critical that the capacity market rules send the proper long-term investment signals to ensure capacity that can meet the reliability needs of the region.”