Executive Summary

On March 21, the Federal Energy Regulatory Commission (FERC or the Commission) issued Order No. 2023-A (Final Rule), which reaffirmed aspects of Order No. 2023 — the Commission’s landmark order updating its generator interconnection procedures. As detailed further in this summary, the Commission largely upheld Order No. 2023, including some of the more controversial aspects of the order, such as penalties and the transmission capacity “heat map,” and provided further clarity on other aspects.Continue Reading Troutman Pepper Summary of FERC Order No. 2023-A on Generator Interconnections

On January 30, 2024, FERC approved, subject to condition, PJM’s proposal to reform its Reliability Pricing Model, including resource adequacy risk modeling, capacity accreditation, testing requirements for capacity resources, and the Capacity Performance stop loss (“Modeling Enhancements Filing”). In that same order, FERC approved PJM’s proposal to replace its previously effective average Effective Load Carrying Capability (“ELCC”) capacity accreditation method with a marginal approach, effective December 12, 2023. The order directed PJM to submit a compliance filing to make certain revisions to its proposal, which PJM subsequently submitted on February 16, 2024. Additionally, on February 6, 2024, FERC rejected a companion PJM proposal to modify the rules governing its Market Seller Offer Cap and Capacity Performance construct and adopt a forward-looking Energy and Ancillary Service (“EAS”) offset for purposes of calculating the Minimum Offer Price Rule (“MOPR”) and offer cap.Continue Reading FERC Approves Changes to PJM Capacity Accreditation Rules; Rejects Proposed Changes Seeking to Better Reflect Risk in Capacity Market Offers.

On November 30, 2023, the Commission denied a waiver request and a request for remedial relief from Ridgeview Solar LLC (“Ridgeview Solar”). Ridgeview Solar had sought a waiver or remedial relief from the procedural deadline in section 212.4 of the PJM Interconnection, L.L.C. (“PJM”) Open Access Transmission Tariff (“Tariff”) to post security after the deadline outlined in the section.Continue Reading FERC Rejects Solar Developer’s Request for Waiver of Security Posting Requirements After Using the Wrong Form; FERC Urges Tariff Changes

On November 30, 2023, the Commission denied the Minnesota Municipal Power Agency’s (“MMPA”) complaint alleging that Northern Natural Gas Company (“Northern”) violated the Natural Gas Act (“NGA”) by refusing to execute an interconnection agreement for MMPA’s planned renewable natural gas (“RNG”) facility in Elk River, Minnesota (“Elk River Project”).  The Commission denied MMPA’s complaint without prejudice because the complaint was unripe since Northern has yet to act on MMPA’s interconnection request.Continue Reading FERC denies Muni Complaint on Proposed RNG Interconnection Request

On September 29, 2023, FERC accepted part of Arizona Public Service Company’s (“APS”) proposed interconnection queue reforms to transition from a first come, first served cluster study process to a first ready, first served cluster study process. Generally, FERC accepted APS’s proposals that would prevent speculative projects from moving through the queue, while rejecting proposals that were not consistent with or superior to the pro forma Large Generator Interconnection Procedures (“LGIP”). APS’s interconnection queue reform proposal was submitted before FERC issued Order No. 2023; the approved reforms do not constitute APS’s Order No. 2023 compliance filing and are based on FERC’s currently effective pro forma LGIP.Continue Reading FERC Partially Accepts Arizona Public Service Company’s Proposed Interconnection Queue Reforms

On July 7, 2023, the U.S. Court of Appeals for the District of Columbia Circuit (“D.C. Circuit”) issued an opinion rejecting petitioner Hecate Energy Green County 3 LLC’s (“Hecate”) claim that the New York Independent System Operator (“NYISO”) tariff did not contain sufficient detail to put it on notice that NYISO would assess network upgrade costs resulting from non-jurisdictional projects.  Instead, the Court agreed with FERC that because its tariff gave “fair notice,” NYISO “had not impermissibly adopted a practice that was not in its tariff.”Continue Reading D.C. Circuit Backs FERC in New York Cost Allocation Dispute, Giving FERC Broad Deference under the Rule of Reason

On June 2, 2023, FERC accepted in part and rejected in part Public Service Company of Colorado’s (“PSCo”) proposed revisions to its Large Generator Interconnection Procedures (“LGIP”) and Large Generator Interconnection Agreement (“LGIA”). In largely accepting PSCo’s proposed revisions, FERC found that the reforms would either strengthen the ability of PSCo to process generator interconnection requests or provide general improvements to existing processes.Continue Reading FERC Accepts in Part and Rejects in Part PSCo’s Proposed LGIP & LGIA Revisions