On November 3, 2009, the United State Supreme Court (“Supreme Court”) heard oral arguments on whether the Mobile-Sierra doctrine applies to third-party challenges to contracts.
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Senate Democrats Bypass Republicans on Committee to Approve Global Warming Bill
On November 5, 2009, Senate Democrats on the U.S. Senate Committee on Environment and Public Works (“EPW Committee”) ended a three-day Republican boycott by passing the Clean Energy Jobs and American Power Act, S. 1733 (“Kerry-Boxer Bill”), without Republican participation.
FERC Approves Cost Allocation Proposal for Cross-Border Facilities
On November 3, 2009, the Federal Energy Regulatory Commission (“FERC” or the “Commission) accepted revisions to the Joint Operating Agreement (“JOA”) between the PJM Interconnection, L.L.C. (“PJM”) and the Midwest Independent Transmission System Operator, Inc. (“Midwest ISO”) that allocate the costs of economic cross-border facilities.
FERC Disclaims Jurisdiction over Transmission Lines Interconnecting SPP to ERCOT
On November 5, 2009, FERC issued a declaratory order disclaiming jurisdiction over proposed transmission lines that would connect wind generators located in the Texas portion of the Southwest Power Pool (“SPP”) to load in the Electric Reliability Council of Texas (“ERCOT”).
FERC Approves New Cost Allocation Plan for Midwest ISO
On October 23, 2009, the Federal Energy Regulatory Commission (“FERC” or the “Commission) approved an interim Midwest Independent Transmission System Operator, Inc. (“Midwest ISO”) Open Access Transmission, Energy and Operating Reserve Markets Tariff (“Tariff”) amendment to revise the method for allocating the cost of network upgrades for generation interconnection projects that meet the Midwest ISO’s regional expansion criteria and benefits standards (“RECB”). The Tariff will now require that generators pay all interconnection costs to lines smaller than 345 kV and 90 percent of network upgrades for lines that are 345 kV or greater.
Nine Agencies Sign MOU to Expedite Transmission Siting on Federal Lands
On October 28, 2009, the Obama Administration released a Memorandum of Understanding (“MOU”) signed by nine agencies to streamline and expedite the siting and construction of electric transmission lines on federal land.
FERC Asserts Exclusive Jurisdiction Over Organized Wholesale Energy Markets
On October 20, 2009, the General Counsel for the Federal Energy Regulatory Commission (“FERC” or the “Commission”) submitted comments to the Commodity Futures Trading Commission (“CFTC”) stating that FERC has exclusive jurisdiction over the transmission and sale of electricity in interstate commerce or with regulation of wholesale energy markets.
Obama Administration Awards Smart Grid Grants
On Tuesday, President Barack Obama announced the award of $3.4 billion in the Department of Energy’s Smart Grid Investment Grant program to a list of one hundred companies and communities in forty-nine states in an effort to modernize the electricity grid.
Texas PUC Defends Decision that Wind Developer Cannot Provide Firm Power
On October 22, 2009, the Public Utility Commission of Texas (“PUCT” or “Texas Commission”) asked the Federal Energy Regulatory Commission (“FERC” or the “Commission”) to dismiss an enforcement petition from six wind power developers, stating that the developers mischaracterized the PUCT’s decision not to allow the developers to sell output from their qualifying facilities (“QF”) at avoided cost rates.
FERC Proposes Changes to Qualifying Facility Rules
On October 15, 2009, the Federal Energy Regulatory Commission (“FERC” or “the Commission”) issued a Notice of Proposed Rulemaking to revise the criteria and procedures for existing or proposed small power production or cogeneration facilities seeking Qualifying Facility (“QF”) status. The Commission has also proposed to clarify that eligible solar, wind, waste or geothermal facilities that are QFs will be exempt from certain provisions of the Federal Power Act (“FPA”) and Public Utility Holding Company Act of 2005 (“PUHCA 2005”), regardless of size.