On December 9, 2013, the North American Electric Reliability Corporation (“NERC”) released its annual “Long-Term Reliability Assessment,” which considers current and anticipated issues in electric reliability for the next decade.  NERC explains that it evaluates certain “key reliability indicators,” including: peak demand, energy forecasts, resource adequacy, transmission development, changes in overall system characteristics and operating behavior, as well as other issues that may impact the reliability of the bulk power system.

On December 11, 2013, FERC Staff convened a workshop to discuss the mechanics for filing a zero rate reactive power rate schedule – a rate schedule under which there is no compensation for providing reactive power service.  The next step will be for Staff to issue a formal notice requesting written comments on this issue.

On December 3, 2013, the United States Court of Appeals for the District of Columbia Circuit (“D.C. Circuit”) vacated and remanded FERC’s 2011 order regarding certain aspects of the Joint Operating Agreement (“JOA”) between the Midcontinent Independent System Operator, Inc. (“MISO”) and the Southwest Power Pool (“SPP”).  The case involves the impact on SPP of integrating Entergy Arkansas into MISO.

On December 2, 2013, FERC filed two petitions in the United States District Court for the District of Massachusetts asking the court to affirm FERC’s assessment of civil penalties against Lincoln Paper and Tissue, LLC (“Lincoln”), Competitive Energy Services, LLC (“CES”), and Richard Silkman for allegedly manipulating the New England demand response market.

On December 5, 2013, the House Energy and Commerce Subcommittee on Energy and Power held a hearing entitled “Evaluating the Role of FERC in a Changing Energy Landscape.”  The hearing focused on the legal and regulatory authority of FERC and the manner in which FERC has carried out its statutory duties.

On November 15, 2013, FERC issued Order No. 787, authorizing interstate natural gas pipelines and electric transmission operators to voluntarily share non-public, operational information with each other to promote grid reliability and operational planning.  In doing so, FERC stated that “[w]ith the increasing reliance on natural gas as a fuel for electric generation, ensuring robust communications between transmission operators in the electric and natural gas industries will help both systems operate reliably and effectively.”

On Tuesday, November 19, 2013, the United States Court of Appeals for the District of Columbia Circuit (“D.C. Circuit”) held that the Secretary of Energy (“Secretary”) again failed to perform a valid evaluation of annual fees collected from generators for disposal of nuclear waste under the 1982 Nuclear Waste Policy Act (the “Act”).  The D.C. Circuit ordered the Secretary to suspend collection of the fees until such time as it resumes its work with regards to the creation of the Yucca Mountain storage project, as set out in the Act, or until Congress chooses to enact an alternative waste management plan.

On November 21, 2013, FERC approved, with modifications, the North American Electric Reliability Corporation’s (“NERC”) Version 5 Critical Infrastructure Protection (“CIP”) Reliability Standards, CIP-002-5 through CIP-011-1 (see April 22, 2013 edition of the WER).  In addition to approving the Version 5 CIP Reliability Standards, FERC also approved 19 new or revised definitions for inclusion in the Glossary of Terms used in NERC Reliability Standards.

On November 21, 2013, FERC Chairman Jon Wellinghoff announced that he will leave the Commission on November 24, 2013.  It was also announced that President Obama will appoint Commissioner Cheryl LaFleur to serve as acting chair upon Chairman Wellinghoff’s departure.