On October 15, 2009, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) denied New York Regional Interconnect, Inc.’s (“NYRI”) request for rehearing of FERC’s Order on Rehearing, which affirmed its acceptance of the New York Independent System Operator’s (“NYISO”) cost allocation and recovery requirements for economic upgrades to the transmission system. The Commission’s decision may render NYRI’s proposed $2 billion transmission project infeasible.
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PJM Approves $1.4 Billion Transmission Upgrade Plan
On October 15, 2009 the PJM Interconnection (“PJM”) Board approved an additional $1.4 billion in electric transmission grid upgrades and enhancements. This brings PJM’s total investment in their Regional Transmission Expansion Planning (“RTEP”) process since 2000 to $14.7 billion.
FERC Reviews NERC Budget, Voices Concern About Staffing Levels
On October 15, 2009, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) conditionally accepted the 2010 business plan and budget for the North American Electric Reliability Organization (“NERC”), the regional reliability entities and the Western Interconnection Regional Advisory Board. In its order, FERC expressed considerable concern about the staffing levels at NERC and whether they are sufficient for the organization to carry out its mission.
FERC Generally Reaffirms Standards of Conduct
On October 15, 2009, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) issued its rehearing of Order No. 717, Standards of Conduct for Transmission Providers (“SOC”).
California Federal Court Dismisses Global Warming Common Law Nuisance Lawsuit
On October 15, 2009, the United States District Court for the Northern District of California (the “Court”) dismissed a lawsuit brought by the Kivalina Alaska Native Village and others against a large number of energy companies, continuing the saga of whether energy companies can be sued under tort law for emitting greenhouse gases (“GHGs”).
FERC Confirms Reliability Jurisdiction Over Federal Agencies
On October 15, 2009, the Commission issued an order confirming its jurisdiction to enforce reliability standards over federal agencies that use, own or operate the bulk power system.
Commission Clarifies Policy on Flow-Through of Discounted or Negotiated Usage and Fuel Charges to Asset Managers
On October 15, 2009, the Commission issued an order regarding the usage and fuel charges to be paid by an asset manager replacement shipper under the Commission’s capacity release program.
FERC Rules on Texas Eastern Negotiated Fuel Rate Caps
On October 15, 2009, the Commission released an order addressing Texas Eastern Transmission LP’s (“Texas Eastern”) filing of two letter agreements and revised tariff sheets modifying previously filed negotiated rate agreements with New Jersey Natural Gas Company (“New Jersey”) and PSEG Power, LLC (“PSEG”). The modifications included negotiated fuel rate caps and a provision that the negotiated fuel rate cap would apply to any replacement shipper if New Jersey or PSEG released their capacity.
FERC Sides Against Midwest ISO on New Transmission Line Cost
On October 9, 2009, FERC conditionally accepted the Midwest Independent Transmission System Operator, Inc.’s (“Midwest ISO”) filing of an unexecuted amended and restated generator interconnection agreement (“IA”) among Midwest ISO, Community Wind North LLC (“Community Wind”) and Northern States Power Company (“NSP”), subject to Community Wind not having to pay for a new 230-mile transmission line.
NARUC Asks Supreme Court to Rule on Jurisdiction Over Capacity Requirements
On October 5, 2009, the National Association of Regulatory Utility Commissioners (“NARUC”) and a group of state utility regulators filed a brief requesting that the Supreme Court overturn a June 23, 2009 decision by the United States Court of Appeals for the D.C. Circuit (“D.C. Circuit”) regarding jurisdiction over capacity requirements.