On Friday, April 13, 2012, a three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit heard oral argument in a case challenging EPA’s Cross-State Air Pollution Rule (“CSAPR”) (EME Homer City Generation v. EPA).
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FERC Grants PJM’s Declaratory Order
On April 6, 2012, FERC granted a petition for declaratory order filed by PJM Interconnection LLC (“PJM”) regarding the allocation of costs associated with phase angle regulators (“PARs”) installed within the Midwest Independent Transmission System Operator, Inc. (“MISO”).
Duke-Progress Respond to Additional Requests from FERC
On April 14, 2012, Duke Energy Corporation (“Duke Energy”) and Progress Energy, Inc. (“Progress Energy”) submitted their response to FERC’s April 10, 2012 request for additional information regarding the companies’ proposed merger.
New York Energy Highway Task Force Issues Request for Information Concerning “Energy Highway”
On April 11, 2012, the New York Energy Highway Task Force issued a Request for Information (“RFI”) regarding ideas for developing New York State’s “aging energy infrastructure” and promoting clean energy supplies, jobs and economic growth.
Oklahoma Attorney General and OG&E Seek Stay of EPA’s Regional Haze Rule
On April 4, 2012, Oklahoma Attorney General, E. Scott Pruitt, filed a petition with the United States Court of Appeals for the Tenth Circuit (“10th Circuit”) on behalf of the state, Oklahoma Gas & Electric (“OG&E”), and Oklahoma Industrial Energy Consumers seeking a stay of the Environmental Protection Agency’s (“EPA”) Federal Implementation Plan (“FIP”) (or “regional haze rule”) for the state.
Department of Energy to Fund Research on Biomass Based Supplements for Traditional Fuels
On April 10, 2012, the Department of Energy (“DOE”) announced that it is offering up to $15 million in funding to companies, universities, or laboratories working to develop biomass-based oil supplements that can be blended with petroleum. Possible materials used to create the prototype include algae, corn and wheat stovers, dedicated energy crops or wood residues.
FERC Releases Order on PJM Cost Allocation
On March 30, 2012, FERC issued an order on remand from the United States Court of Appeals for the Seventh Circuit (“7th Circuit”) regarding the appropriate cost allocation methodology for large transmission projects in the PJM Interconnection, L.L.C. (“PJM”) region. FERC reaffirmed its decision to approve PJM’s postage stamp rate that socialized the cost of high-voltage projects to the entire RTO.
FERC Conditionally Approves MISO’s Queue Reform
On March 30, 2012, FERC conditionally approved a proposal from the Midwest Independent System Operator (“MISO”) to revise its interconnection queue procedures. The new procedures are designed to address backlogs and late-stage terminations of generation interconnection agreements. FERC approved the new procedures to take effect on January 1, 2012.
PJM Proposes Changes to Wind Resource Compensation, Market Monitor Disagrees
On April 2, 2012, PJM made a filing with FERC proposing to change its Operating Agreement in an effort to align compensation provided to wind generators for “lost opportunity costs” with the compensation currently offered to conventional generating resources.
FERC Staff Issues Notice of Alleged Violations Against Barclays Bank and Individual Traders
On April 5, 2012, FERC Staff issued a Notice of Alleged Violations against Barclays Bank PLC (“Barclays”) and individual traders Daniel Brin, Scott Connelly, Karen Levine, and Ryan Smith.