On July 2, 2026, the Federal Energy Regulatory Commission (FERC or Commission) denied a waiver request filed by Chestnut Run Energy LLC (Chestnut Run) seeking a one-time limited waiver of certain requirements under PJM Interconnection, L.L.C.’s (PJM) Open Access Transmission Tariff (Tariff) to allow Chestnut Run to implement an equipment change to its proposed combined cycle gas turbine electric generating facility’s (Facility) configuration. Chestnut Run sought waiver because of availability issues with certain equipment outlined in its interconnection application. In denying the request, FERC found Chestnut Run did not demonstrate that the requested waiver would not result in undesirable consequences and noted that the requested waiver would undermine the expeditious nature of PJM’s Reliability Resource Initiative (RRI) process.
FERC Practice
FERC Orders Regional Grid Operators to Justify or Reform Tariff Provisions for Interconnection of Large Loads
On June 18, 2026, the Federal Energy Regulatory Commission (“FERC”) issued six show cause orders under Section 206 of the Federal Power Act (“FPA”) to each of the country’s regional transmission operators (“RTOs”) and independent system organizations (“ISOs”), along with their transmission owners (collectively, the “Show Cause Orders”). FERC issued the Show Cause Orders as an initial response to the Secretary of Energy’s October 2025 letter directing FERC to initiate an Advance Notice of Proposed Rulemaking (“ANOPR”) presenting potential reforms to ensure the timely and orderly interconnection or large loads to the transmission system. The ANOPR docket, Docket No. RM26-4-000, generated more than 3,500 pages of public comments. The Show Cause Orders also come on the heels of a series of FERC’s actions over the past year designed to address large load growth. These actions include a December 2025 FERC order directing PJM Interconnection, L.L.C. (“PJM”) to adopt clear, transparent tariff rules for large energy users located at or near generation facilities, FERC’s January 2026 approval of Southwest Power Pool, Inc.’s (“SPP”) High Impact Large Load and High Impact Large Load Generation Assessment processes, as well as FERC’s June 2026 approval of SPP’s Conditional High Impact Large Load proposal.
FERC Issues NOPR Proposing Revisions to Annual and Quarterly Financial Forms
On June 18, 2026, FERC issued a Notice of Proposed Rulemaking (NOPR) seeking industry comments on proposed revisions to various FERC annual and quarterly financial reporting forms. The NOPR proposes revisions to FERC Form Nos. 1 (Annual Report of Major Electric Utilities, Licensees, and Others), 1-F (Annual Report for Nonmajor…
FERC Addresses Arguments on Rehearing and Requires Additional PJM Tariff Revisions to Accommodate Co-Located Load
On June 18, 2026, FERC accepted in part and rejected in part requests for rehearing of its December 18, 2025, order (December Order) directing PJM Interconnection, L.L.C. (PJM) to revise its Open Access Transmission Tariff (Tariff) to clarify and establish certain rates, terms, and conditions of service applicable to Interconnection…
FERC Approves PJM’s Tariff Revisions for an Expedited Interconnection Track
On June 9, 2026, FERC accepted PJM Interconnection, L.L.C.’s (PJM) proposal to establish an Expedited Interconnection Track process for Generating Facilities (EIT Process). In doing so, FERC found that the EIT Process will help address PJM’s imminent resource adequacy needs by establishing an expedited interconnection process for a limited number of resources that are able to bring significant capacity onto the system quickly. The revisions were accepted effective June 10, 2026, and July 31, 2026.
FERC Approves ISO-NE Updated Market Rules for Distributed Energy Resources
On May 29, 2026, FERC approved revisions to the ISO New England, Inc.’s (ISO-NE) proposed market rules for the participation of Distributed Energy Resources (DERs) and to implement a one-time extension to the period in which resources are required to resume commercial operation following a forced outage. FERC held that the tariff revisions are just and reasonable because they address a gap in ISO-NE’s rules created during the Order No. 2023 compliance process wherein there was no longer a process for DERs to establish Network Resource Capability (NRC) and/or Capacity Network Resource Capability (CNRC), which are necessary to participate in ISO-NE’s markets, and because they balance needed resource flexibility while ensuring timely repair after an outage.
FERC Denies Complaint Against PJM’s Transition Cycle No. 1 Process
On May 21, 2026, FERC denied a complaint filed by Gaston Green Acres Solar, LLC (Gaston) and Bethel NC Hwy 11 Solar, LLC (Bethel) (collectively, with Gaston, Complainants) against PJM Interconnection, L.L.C. (PJM) arguing: (1) PJM’s Open Access Transmission Tariff (Tariff) is unjust and unreasonable because it prevented Complainants from withdrawing their generation projects from PJM’s generator interconnection process Transition Cycle No. 1 without penalty, and (2) in the alternative, FERC should order PJM to issue Bethel its own generation interconnection agreement (GIA) if PJM’s Tariff is not deemed to be unjust and unreasonable in this regard. FERC denied the complaint, finding the Complainants did not satisfy their burden under Federal Power Act section 206, failed to identify Tariff provisions requiring the issuance of a GIA for Bethel, and did not demonstrate that PJM violated its Tariff.
DC Circuit Dismisses Solar Developers’ Challenges to SPP Network Upgrade Cost Allocation for Lack of Standing
On May 19, 2026, the U.S. Court of Appeals for the District of Columbia Circuit (DC Circuit) dismissed Cage Ranch Solar LLC’s and Cage Ranch Solar II, LLC’s (collectively, Cage Ranch) consolidated petitions for review of FERC orders denying Cage Ranch’s complaint and waiver request, which sought to set aside a deadline by which Southwest Power Pool, Inc.’s (SPP) tariff (Tariff) required Cage Ranch to post financial security for network upgrade costs to support its interconnection requests and maintain its queue position. The DC Circuit dismissed the petitions for failure to demonstrate a concrete injury in fact necessary to establish Article III standing.
FERC Sets Oil Pipeline Price Index for July 1, 2026 through June 30, 2031
On April 24, 2026, FERC issued a Final Rule establishing a Producer Price Index for Finished Goods (PPI-FG) minus 0.55% for oil pipelines. The Commission set the revised PPI-FG for a five-year period, July 1, 2026 through June 30, 2031. In setting the revised index, FERC “trimmed” the utilized cost data to the middle 80% of cost changes, declined to incorporate certain Form 6 cost data that was resubmitted in 2025, and adjusted the page 700 data set to reflect the Commission’s return on equity (ROE) policy changes based on the 2020 index review. The Final Rule is effective June 29, 2026.
FERC Accepts PJM Capacity Market Price Collar Extension
On April 28, 2026, FERC accepted PJM Interconnection, L.L.C.’s (PJM) Open Access Transmission Tariff (Tariff) revisions to establish a price cap and floor for all Reliability Pricing Model (RPM) auctions for the 2028/2029 and 2029/2030 Delivery Years, finding that the price cap and floor will allow PJM to signal the need for additional resources while protecting customers from higher prices.