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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. 

On August 31, 2021, FERC denied Cross-Sound Cable Company, LLC’s (“Cross-Sound Cable”) application for incentive rate treatment to create a regulatory asset to recover costs incurred between 2016 and 2021 to comply with Interconnection Reliability Operating Limits (“IROL”) Critical Infrastructure Protection (“IROL-CIP”) costs under Schedule 17 of the ISO-New England (“ISO-NE”) Tariff.

On July 15, 2021, the Federal Energy Regulatory Commission (“Commission” or “FERC”) issued a Final Rule amending its regulations pertaining to: (1) the information required to be filed with a notice of intent to construct a qualifying conduit facility and (2) the licensing requirements applicable to major projects up to 10 megawatts (MW).  The Final Rule was issued to align the Commission’s regulations with changes to the Federal Power Act (“FPA”) that were made as part of the Hydropower Regulatory Efficiency Act (“HREA”) of 2013.

On June 24, 2021, FERC formally issued a public report that outlined its plan to establish the Office of Public Participation (OPP).  The report stated that the OPP’s mission is to assist the public in learning about and participating in FERC proceedings, and that FERC aims to have the OPP at full operating capacity by fiscal year (FY) 2024.

On February 11, 2021, the Federal Energy Regulatory Commission (FERC) announced plans to create a senior position at the Commission to coordinate incorporation of environmental justice (EJ) concerns into the Commission’s decision-making process.  FERC Chairman Richard Glick indicated that the newly created office would be a cross-cutting position and that its eventual occupant would be charged with working with experts across all FERC program offices to ensure that EJ and equity matters are integrated into Commission decisions.  On May 20, Chairman Glick announced the appointment of Montina Cole to serve as Senior Counsel for Environmental Justice and Equity.  The FERC press release describes Cole as a “seasoned executive and attorney” with an active consulting and legal practice, “where she works at the intersection of climate policy, racial equity and resilience.”

Addressing environmental justice (EJ) concerns highlighted during the campaign is an important priority for the Biden Administration.  Within a week of taking the oath of office, President Biden issued a sweeping executive order with a number of EJ initiatives, including creation of a White House Environmental Justice Interagency Council consisting of the heads of each Cabinet-level and independent federal agency.  The order also directed federal agencies to “make achieving environmental justice part of their missions” through development of programs and policies aimed at addressing disproportionately high adverse environmental impacts on disadvantaged communities.

On March 18, 2021, FERC issued a Final Rule amending its regulations to establish a one-year period for states, tribes, or other certifying authorities (“Certifying Agencies”) to act on a Clean Water Act (“CWA”) Section 401 water quality certification request for proposed natural gas and liquefied natural gas projects.

On March 5, 2021, FERC issued a Notice of Virtual Listening Sessions and Public Comment Period soliciting input on how it should establish and operate its Office of Public Participation (OPP) pursuant to section 319 of the Federal Power Act (FPA).  Commission staff, led by Commissioner Clements, held the first public listening session on March 17, and additional listening sessions and a Technical Workshop are scheduled for the coming weeks.

FERC is hosting a number of workshops and technical conferences over the next several months. These include the Resource Adequacy technical conference; Listening Tour for the Office of Public Participation; workshop on compliance with Order No. 860; conference on Electrification and the Grid; and a technical conference on the threats climate change poses to the grid.  Read on for more information about each.

On February 18, 2021, FERC issued two orders terminating the proceedings stemming from the Department of Energy’s (“DOE”) Proposed Rule on Grid Reliability and Resilience (“Proposed Rule”). FERC previously established rulemaking proceedings in Docket No. RM18-1-000 to consider the proposed rule, which was submitted to FERC by the DOE in September 2017 pursuant to the Department of Energy Organization Act section 403 (“DOE Proposed Rulemaking Proceeding”). FERC terminated the DOE Proposed Rulemaking Proceeding on January 8, 2018 (see January 17, 2018 issue of the WER), instead opening an inquiry proceeding in Docket No. AD18-7-000 (“Inquiry Proceeding”) to evaluate the resilience of the bulk power system in the regions operated by regional transmission organizations (“RTOs”) and independent system operators (“ISOs”). On February 18, 2021, FERC: 1) issued an order on rehearing that sustained its decision to terminate the DOE Proposed Rulemaking Proceeding in Docket No. RM18-1-000; and 2) terminated the Inquiry Proceeding in Docket No. AD18-7-000.  Commissioner Neil Chatterjee issued a dissenting opinion in the order terminating the Inquiry Proceeding.