In an unusual move, on July 9, 2013, FERC announced that the Office of Enforcement will seek information from certain unnamed natural gas marketers concerning those marketers’ natural gas sales activities. These efforts appear to be connected with the Commission’s November 12, 2012 Notice of Inquiry (“NOI”) on Enhanced Natural Gas Market Transparency in Docket No. RM13-1-000 (see November 16, 2012 edition of the WER), and do not appear to be enforcement actions against the companies from whom information will be sought.
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Commissioner Moeller Testifies before House Subcommittee on Pipeline Issues
On July 9, 2013, FERC Commissioner Philip Moeller testified before the House Subcommittee on Energy and Power with regard to HR 1900, the Natural Gas Pipeline Permitting Reform Act (the “Act”). Testifying in an individual capacity, Commissioner Moeller offered his personal views on the Act.
FERC Clarifies and Reaffirms Order on Bonneville Wind Curtailment “Oversupply Management” Policy
On Wednesday, June 26, 2013, FERC issued an order denying rehearing (“Order Denying Rehearing”) of two prior orders related to the Bonneville Power Administration’s (“Bonneville”) transmission service curtailment practices under a protocol currently named the “Oversupply Management Protocol” (“OMP”). In those prior orders FERC: (1) reaffirmed its authority under Federal Power Act (“FPA”) Section 211A and its use of that authority order to remedy Bonneville’s unduly discriminatory practices against wind generation; and (2) directed Bonneville to significantly revise its proposed oversupply curtailment policies and cost allocation mechanisms in order to ensure comparability and eliminate undue discrimination (see January 8, 2013 edition of the WER). The Order Denying Rehearing again affirmed FERC’s authority to act under FPA Section 211A and further clarified the revisions Bonneville must make to its OMP schema.
President Obama Nominates Ron Binz to Lead FERC
On June 28, 2013, President Barack Obama announced the nomination of Colorado’s Ron Binz to become a FERC Commissioner, taking the seat of outgoing Chairman Jon Wellinghoff who announced his resignation last May (see May 31, 2013 edition of the WER). The White House also announced that upon his appointment, the President will designate Binz to serve as the Commission’s Chairman. Binz’s appointment to the Commission will require Senate confirmation.
President Obama Announces Climate Action Plan
On June 25, 2013, President Barack Obama released a sweeping climate plan (“Plan”) using his authority to both address greenhouse gas (“GHG”) emissions and to prepare for the impacts of climate change. The plan, which consists of a wide variety of executive actions, has three key pillars: (1) cut carbon pollution in America; (2) prepare the United States for the impacts of climate change; and (3) lead international efforts to combat global climate change.
FERC Approves Progress Report on and Enhancements to NERC’s “Find, Fix, Track and Report” Program
On June 20, 2013, the Commission accepted the North American Electric Reliability Corporation’s (“NERC”) compliance filing concerning the progress of its Find, Fix, Track and Report (“FFT”) program, and approved certain enhancements offered by NERC aimed at improving processing time for FFTs and allowing more possible violations to be processed as FFTs.
Supreme Court Agrees to Review D.C. Circuit’s CSAPR Vacatur
On June 24, 2013, the Supreme Court granted the U.S. Environmental Protection Agency’s (“EPA”) and environmental groups’ Petitions for Writs of Certiorari requesting review of the U.S. Court of Appeals for the District of Columbia Circuit’s (“D.C. Circuit”) vacatur of the Cross-State Air Pollution Rule (“CSAPR”).
FERC Grants WECC Permission to Divide into Two Entities
On June 20, 2013, FERC conditionally granted the Western Electricity Coordinating Council’s (“WECC”) petition to establish a separate, independent company to serve as the reliability coordinator within the Western Interconnection. Once established, the new company, RC Company, will take over as the reliability coordinator from WECC and assume responsibility for the WECC Interchange Tool. FERC’s final approval of the petition will rest upon review of RC Company’s final governance documents.
FERC Settles Investigation Concerning Demand Response Products in PJM
On June 7, 2013, FERC approved a Stipulation and Consent Agreement (“Settlement”) with Enerwise Global Technologies, Inc. (“Enerwise”) for violations of the PJM Interconnection, LLC(“PJM”) Open Access Transmission Tariff (“Tariff”) and the Commission’s Anti-Manipulation Rule 18 C.F.R. § 1c.2 (2012). Enerwise committed these violations in connection with its activities as a Curtailment Service Provider (“CSP”) in PJM, and specifically, its demand response activities with one customer, the Maryland Stadium Authority (“MSA”).
FERC Denies Rehearing of Order Finding that QF Curtailment Policy Violates PURPA
On June 20, 2013, FERC issued an order denying requests for rehearing (“Order Denying Rehearing”) of its September 20, 2012 Order (“September 20 Order”) regarding Idaho Power Company’s (“Idaho Power”) proposal to curtail purchases from Qualifying Facilities (“QFs”) that met certain characteristics. On rehearing, FERC reiterated that if Idaho Power’s proposal were to be approved by the Idaho Public Utilities Commission (“Idaho PUC”), it would be inconsistent with the Public Utility Regulatory Policies Act of 1978 and FERC’s regulations. (See September 23, 2012 edition of the WER.)