On May 3, 2018, FERC accepted revisions proposed by PJM Interconnection, L.L.C. (“PJM”) to its Open Access Transmission Tariff, Amended and Restated Operating Agreement, and Reliability Assurance Agreement Among Load Serving Entities in the PJM Region, to reflect load reductions from Summer-period Demand Response resources in load forecasts for PJM’s capacity market (“Peak Shaving Adjustment”).
Continue Reading FERC Accepts PJM Revisions Related to Summer-Period Demand Response Resources

On April 23, 2019 FERC granted in part and denied in part a rehearing request (“Rehearing Order”) filed by American Municipal Power Inc. (“AMP”) of FERC’s February 5, 2018 order (“February 5 Order”) accepting PJM Interconnection, L.L.C.’s (“PJM”) revisions to amend its Open Access Transmission Tariff (“Tariff”) and Amended and Restated Operating Agreement (“Operating Agreement”) to improve the process for adding a pseudo-tied resource into the PJM region.  As part of this process, PJM proposed to incorporate two pro forma pseudo-tie agreements and a pro forma system modification reimbursement agreement (“Reimbursement Agreement”).  In the Rehearing Order, FERC granted AMP’s request on rehearing that the indemnification provisions of the Reimbursement Agreement should be consistent with related provisions in the pro forma pseudo-tie agreements.  FERC denied rehearing with respect to the compensation provision and the suspension and termination provisions in the pro forma pseudo-tie agreements.
Continue Reading FERC Grants Partial Rehearing of PJM’s Agreement Implementing Pseudo-Tied Resources

On April 18, 2019, FERC found that the fast-start pricing practices of New York Independent System Operator, Inc. (“NYISO”) and PJM Interconnection, L.L.C. (“PJM”) were unjust and unreasonable and directed NYISO and PJM to revise their tariffs to implement certain changes discussed in the orders (“2019 Orders”).  In doing so, FERC found that NYISO’s and PJM’s current fast-start tariff provisions do not allow prices to reflect the marginal cost of serving load.
Continue Reading FERC Directs PJM And NYISO to Revise Fast-Start Pricing Practices

On April 18, 2019, FERC partially granted a complaint American Wind Energy Association and the Wind Coalition filed against the Southwest Power Pool, Inc. (“SPP”), alleging that the membership exit fee provisions, as applied to entities who are not transmission owners, violated the cost causation principle and resulted in unduly discriminatory rates (the “Complaint”).  FERC found that SPP’s membership exit fee is unjust and unreasonable because it creates a barrier to SPP membership for non-transmission owners and appears to be excessive. Accordingly, FERC directed SPP to eliminate the membership exit fee for non-transmission owners.

Continue Reading FERC Directs SPP to Remove Exit Fee for Non-Transmission Owners

On March 29, 2019, FERC issued an order accepting revisions to the Midcontinent Independent System Operator Inc.’s (“MISO”) Open Access Transmission, Energy, and Operating Reserve Markets Tariff (“Tariff”) to enhance the scheduling of Generator Planned Outages—i.e., the scheduled removal of a generator from service for inspection, maintenance, or repair.  While MISO previously managed planned outages through voluntary rescheduling, the Tariff revisions at issue: 1) impose penalties for outages scheduled during low capacity margin, high risk periods, and 2) assist generators in scheduling outages by improving the transparency and quality of generator outage information through MISO’s maintenance margin tool. In accepting MISO’s proposal, FERC concluded that these measures would address recent increases in emergency events by incenting generators to schedule planned outages in advance, and by improving MISO’s ability to coordinate these outages to avoid emergency events.
Continue Reading FERC Approves MISO Revisions to Generator Planned Outage Scheduling, Subject to Condition

On March 19, 2019, FERC conditionally accepted the Midcontinent Independent System Operator, Inc.’s (“MISO”) proposed tariff revisions to: (1) clarify how market participants with pseudo-ties outside of MISO can use virtual transactions to align Financial Transmission Rights (“FTRs”) and transmission usage charges; and (2) reduce the administrative charges assessed to market participants with a pseudo-tie of generation or load out of MISO.
Continue Reading FERC Conditionally Accepts MISO Tariff Amendments Related to Pseudo-Ties

On March 6, 2019, the New Hampshire Public Utilities Commission (“PUC”) declined to reconsider an earlier order refusing to enforce a newly-enacted mandatory biomass power purchase obligation, and associated subsidy scheme. Although the New Hampshire PUC ruled narrowly in both decisions, the law subsidizing state biomass generators at above-market rates is the latest in a series of recent state actions pushing the jurisdictional line between FERC and state authority (see, e.g., April 27, 2016 edition of the WER; September 25, 2018 edition of the WER; October 3, 2018 edition of the WER).  As of this writing, challenges to the law remain pending at FERC.
Continue Reading New Hampshire Public Utilities Commission Declines to Enforce Utility Biomass Purchase Obligation Pending Outcome of Challenges at FERC

On December 14, 2018, Vineyard Wind, LLC (“Vineyard Wind”) filed a Petition with FERC to waive the pro-rata proration requirements of the ISO New England, Inc. (“ISO-NE”) Transmission, Markets and Services Tariff (“Tariff”) so that Vineyard Wind could participate in the upcoming ISO-NE Forward Capacity Auction 13 (“Auction 13”) as a Renewable Technology Resource (“RTR”).  Because time was of the essence, Vineyard Wind asked FERC to render an expedited decision no later than January 29, 2019.  FERC took no action on the Petition, however, and as of this writing, has also not taken any action on Vineyard Wind’s subsequent Emergency Motion for relief, rendering it all but certain that Vineyard Wind will be unable to participate in Auction 13.
Continue Reading FERC Takes no Action on Vineyard Wind’s Petition for RTR Status

On January 23 and 24, 2019, the Department of Energy (“DOE”) announced $78 million in federal funding to improve existing coal-fired power plants and for grid modernization.  Both funding programs come from DOE’s Office of Fossil Energy.
Continue Reading DOE Announces New Funding for Improvements to Existing Coal-Fired Power Plants and Grid Modernization

On December 3, 2018, FERC accepted ISO New England Inc.’s (“ISO-NE”) proposed temporary revisions to its Transmission, Markets and Services Tariff (“Tariff”) designed to address fuel security by a 2-1 vote.  Among other things, the order enables ISO-NE to enter into cost-of service agreements with certain retiring generators that are deemed necessary for regional fuel security and reliability.  Commissioner McIntyre did not participate and Commissioner Glick issued a separate concurring opinion.  Of particular note was the dissenting opinion filed by Chairman Neil Chatterjee.
Continue Reading A Divided FERC Approves ISO-NE’s Proposal for Regional Fuel Security