On February 17, the Nuclear Regulatory Commission (“NRC”) adopted a final rule requiring applicants for new nuclear plants to assess the design of their reactor to avoid or mitigate the effects of a large commercial airplane crash.
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FERC Upholds PJM Supplier Test Decision but Requests Modifications
By Troutman Pepper Locke on
Posted in Uncategorized
On February 19, 2009, the Commission ruled that PJM’s three-pivotal-supplier test, used to identify sellers that can exercise market power, was not unjust and unreasonable and rejected complaints to have the test terminated. However, the Commission did require PJM to reform the test’s mitigation measures applied to suppliers who fail the test.
Court Overturns FERC on Backstop Siting Authority
By Troutman Pepper Locke on
Posted in Uncategorized
On Wednesday, the United States Court of Appeals for the Fourth Circuit (“Court of Appeals”) reversed a Federal Energy Regulatory Commission (“FERC” or “Commission”) ruling interpreting its authority to approve certain interstate electric transmission projects that had been previously denied by state commissions.
FERC Approves New “Anchor” Customer Model for Merchant Transmission
By Troutman Pepper Locke on
Posted in Uncategorized
On Thursday, FERC approved new flexible rate mechanisms for two merchant transmission projects. Chinook Power Transmission, LLC (“Chinook”) and Zephyr Power Transmission, LLC (“Zephyr”) plan to build 2,100 miles of transmission to deliver wind power from Montana and Wyoming to customers in Nevada and other Southwestern states.
FERC Rejects Settlement with Amaranth
By Troutman Pepper Locke on
Posted in Uncategorized
On February 12, 2009, in an unusual move, FERC rejected a settlement between the Commission’s Office of Enforcement Litigation Staff (“Staff”), the defunct hedge fund Amaranth Advisors LLC (“Amaranth”) and two of Amaranth’s traders, Brian Hunter and Matthew Donohoe. The parties submitted the settlement, which was not made public, to the Commission for approval on November 24, 2008.
EPA to Reconsider Clean Air Act Regulation of Greenhouse Gas Emissions
By Troutman Pepper Locke on
Posted in Uncategorized
On Tuesday, the U.S. Environmental Protection Agency (“EPA”) granted a petition from the Sierra Club and others to reconsider former EPA Administrator Stephen Johnson’s December 18, 2008 memorandum interpreting the federal Clean Air Act as not requiring regulation of carbon dioxide emissions from new coal-fired power plants.
Stimulus Bill Nearly Complete
By Troutman Pepper Locke on
Posted in Uncategorized
On Wednesday, leaders from both the U.S. House of Representatives (“House”) and the U.S. Senate (“Senate”) finished reconciling all of the major provisions of the American Recovery and Reinvestment Act (“Stimulus Bill”), estimated to cost $789 billion. While some of the energy provisions passed by the House and Senate (see January 23 and January 30, 2009 edition of WER) have changed, the majority remain intact.
Plan Estimates $80 Billion Needed to Bring Wind Power to Eastern US
By Troutman Pepper Locke on
Posted in Uncategorized
On Monday, several regional grid operators and organizations announced the Joint Coordinated System Plan (“JCSP”) report, which estimates that over $80 billion in new transmission is needed to support 20% of the electricity consumed in the eastern U.S. coming from wind generation. 20% is the wind energy contribution that the U.S. Department of Energy (“DOE”) recommended in its Eastern Wind Integration and Transmission Study.
FERC Refuses to Order ISO-NE to Modify its OATT
By Troutman Pepper Locke on
Posted in Uncategorized
On February 3, 2009, FERC denied a complaint by the Maine Public Utilities Commission (“Maine PUC”) alleging that ISO New England Inc.’s (“ISO-NE”) Open Access Transmission Tariff (“OATT”) compensates generators supplying reactive power for certain capital costs twice.
FERC Approves Plan to Better Integrate ISO-NE Interconnection Queue and Forward Capacity Market
By Troutman Pepper Locke on
Posted in Uncategorized
On January 30, 2009, FERC issued an order approving ISO-NE tariff revisions to integrate the FCM and the generator interconnection process. The modified OATT provisions will offer two levels of interconnection service, one of which will have a deliverability requirement.