On Thursday, FERC issued a proposed policy statement and action plan to develop a smarter grid for the U.S. electric transmission system. The Commission’s intent is to prioritize the development of key interoperability standards, provide guidance to the electric industry regarding the need for full cybersecurity for “Smart Grid” projects, and provide an interim rate policy under which jurisdictional public utilities may seek to recover the costs of Smart Grid deployments before relevant standards are adopted through a Commission rulemaking.

On March 9, 2009, Texas Representative Jim Keffer (R) and Senator Wendy Davis (D) filed several bills that would drastically alter the electricity market in Texas. Both lawmakers say the bills aim to cut wholesale electricity prices, but the bills met instantaneous opposition from state power companies, specifically NRG Energy Inc. (“NRG”) and Energy Future Holding’s Luminant (“Luminant”).

On Monday, Commissioner Joseph T. Kelliher announced that we would leave the Federal Energy Regulatory Commission (“FERC” or “Commission”) effective today. Commissioner Kelliher’s announcement was expected even though his term does not end until 2012. Commissioner Kelliher has served at FERC since November 20, 2003 and was chairman from July

On Tuesday, Senator Jeff Bingaman (D-NM) released draft legislation on transmission siting, planning and cost allocation. Senator Harry Reid (D-NV) introduced similar legislation last week (see March 6, 2009 edition of the WER). While Sen. Reid’s bill strengthens FERC’s existing backstop siting authority, Sen. Bingaman’s proposal would allow project developers to go directly to FERC and bypass the state approval process altogether in certain circumstances.

On Thursday, FERC Acting Chairman Jon Wellinghoff testified before the U.S. Senate’s Committee on Energy and Natural Resources on siting of electric transmission lines. Acting Chairman Wellinghoff’s testimony was part of a full committee hearing that included witnesses representing federal and state commissions, transmission and electricity companies, and regional entities.

The National Ambient Air Quality Standard (“NAAQS”) for ozone established by the EPA under the Bush administration was challenged by a coalition of environmental and health advocacy groups, and is currently the subject of pending litigation in the U.S. Court of Appeals for the D.C. Circuit. EPA has now requested that the briefing schedule in that case be suspended for six months, in order for the new administration to review the existing ozone NAAQS and determine whether revision is warranted.