On August 31, 2026, FERC granted The Empire District Electric Company (Empire District) two transmission rate incentives for its portfolio of electric transmission projects in the Southwest Power Pool, Inc. (SPP) region (SPP Project Portfolio): (1) Abandoned Plant Incentive; and (2) construction work in progress (CWIP) Incentive. The Abandoned Plant Incentive will allow Empire District to recover 100% of prudently incurred costs for any SPP Project Portfolio component cancelled or abandoned for reasons beyond its control. The CWIP Incentive will allow Empire District to include 100% of prudently incurred CWIP costs in rate base during the development and construction phase of the SPP Project Portfolio.
Reliability
FERC Modifies Bear Swamp Hydropower License Condition Governing Whitewater Releases to Address Grid Reliability Concerns
On May 13, 2026, FERC granted rehearing, in part, of its November 26, 2025 order issuing a new license to Bear Swamp Power Company, LLC (Bear Swamp) for its 676 megawatt (MW) Bear Swamp Hydroelectric Project (Project) on the Deerfield River in Berkshire and Franklin Counties, Massachusetts. FERC’s order addressed Bear Swamp’s rehearing request challenging license Article 403(2), which required maintenance of impoundment elevations between 830 and 835 feet from 10 a.m. to 12 p.m. on certain days per year to support whitewater boating. In its rehearing order, FERC revised license Article 403(2) to clarify that Bear Swamp would not be in violation of its license for deviating from the impoundment elevation requirements when doing so at ISO-NE’s direction to maintain grid reliability.
FERC Directs NERC to Submit Rules Addressing Risks Associated with Integration of Computational Loads into Bulk Power System
On July 16, 2026, FERC directed the North American Electric Reliability Corporation (NERC) to file new or modified Reliability Standards to address reliability risks to the Bulk Power System associated with the integration of computational loads, revise its Rules of Procedure necessary for registration of computational load entities, and submit…
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.
FERC Approves Virtualization CIP Reliability Standards and Definitions
On March 19, 2026, FERC issued Order No. 919, which approved eleven proposed Critical Infrastructure Protection (CIP) Reliability Standards, four new definitions, and eighteen proposed revised definitions to the North American Electric Reliability Corporation’s (NERC) Glossary of Terms Used in Reliability Standards (NERC Glossary). FERC asserted that the new and revised definitions and new CIP Reliability Standards will support entities’ adoption of virtualization, which will improve the reliability of the Bulk-Power System against cyber security threats. NERC’s revisions will become effective the first day of the first calendar quarter that is 24 months after Order No. 919’s May 26, 2026, effective date, or April 1, 2028.
FERC Approves SPP “System Support Resource” Program to Manage Generator Retirements
On March 19, 2026, FERC approved Southwest Power Pool, Inc.’s (SPP) System Support Resource (SSR) program to allow SPP, under specified conditions, to keep certain generating units that plan to retire temporarily online when they are needed to maintain reliability of the bulk electric system in the SPP region. In doing so, FERC found that SPP’s proposal appropriately balanced the need to maintain reliability with generator owners’ ability to implement their business plans.
MISO to Expand Number of Interconnection Requests it Can Study on Expedited Basis
On November 25, 2025, FERC accepted the Midcontinent Independent System Operator, Inc.’s (MISO) proposal to expand the number of interconnection requests MISO may study under its temporary, fast-tracked generator interconnection process. FERC concluded that the proposal will help ensure interconnection customers are able to interconnect to the MISO transmission system in a reliable, efficient, and timely manner.
FERC Staff Audit Report Identifies CIP Standard Compliance Risks in FY2025
On October 20, 2025, FERC Staff issued a report outlining areas of risk to the reliability of the electric grid based on non-public Critical Infrastructure Protection (CIP) Audits of U.S. based North American Electric Reliability (NERC) registered entities’ (Registered Entities) compliance with CIP Reliability Standards during Fiscal Year 2025 (FY2025).
D.C. Circuit Upholds PJM’s $12 Million Nonperformance Penalties Against Energy Harbor for Failing to Perform When Called Upon During December 2022 Winter Storm
On July 11, 2025, the D.C. Circuit upheld PJM Interconnection L.L.C.’s (“PJM”) assessment of $12 million in penalties against Energy Harbor, LLC (“Energy Harbor”) for failing to perform when called upon by PJM during a major winter storm in December 2022. The D.C. Circuit held that PJM-approved maintenance at Energy Harbor’s coal-fired generation facility, the W.H. Sammis Plant (“Sammis Plant”), was not the sole cause of the Sammis Plant’s nonperformance, and therefore Energy Harbor was not excepted from penalties under PJM’s Open Access Transmission Tariff (“OATT”).
Fifteen States Sue the Trump Administration Over “Energy Emergency” Executive Order
On May 9, 2025, fifteen democratic states (“Plaintiff States”) sued the Trump Administration in Washington District Court, claiming that President Trump’s executive order “Declaring a National Energy Emergency” (“Executive Order”) is unlawful. The Plaintiff States argue that the Executive Order commands federal agencies to disregard the law and applicable regulations to fast-track activities that will damage waters, wetlands, endangered species, and the people and wildlife that rely on these resources.