On Thursday, January 17, 2013, FERC issued its Final Policy Statement, Allocation of Capacity on New Merchant Transmission Projects and New Cost-Based, Participant-Funded Transmission Projects; Priority Rights to New Participant-Funded Transmission (“Final Policy Statement”). FERC stated that the Final Policy Statement clarifies and refines its existing four-factor analysis used to evaluate requests for negotiated rate authority for transmission service.

On January 17, 2013, FERC issued a Notice of Proposed Rulemaking (“NOPR”) that would revise the pro forma Small Generator Interconnection Procedures (“SGIP”) and Small Generator Interconnection Agreement (“SGIA”). The proposed revisions aim to reduce the time and cost of interconnection requests from small generators, promote more efficient interconnection, and eliminate barriers for the development of renewable energy. FERC also added in the NOPR that the proposed revisions help address various market changes, including “the growth of small generator interconnection requests and the growth in solar photovoltaic (PV) installations, driven in part by state renewable energy goals and policies.”

On January 11, 2013, the Department of Energy (“DOE”) released the “Strategy for the Management and Disposal of Used Nuclear Fuel and High-Level Radioactive Waste” (“Strategy”). The Strategy builds on the recommendations of the Blue Ribbon Commission on America’s Nuclear Future (“BRC”) and includes plans for a pilot interim storage facility, a full-scale interim storage facility, and a geologic repository (see February 5, 2010 edition of the WER).

On Friday, January 4, 2013, the U.S. Court of Appeals for the District of Columbia Circuit ruled that the Environmental Protection Agency (“EPA”) must rework how it implements standards for fine particulates emitted by power plants, boilers and motor vehicles.  In making its determination, the court rejected the EPA’s argument that it is required under the Clean Air Act to use a less stringent regime of implementation for standards related to fine particulates than it does for standards related to less dangerous, coarser particles.  As a result, implementation of the two fine particulate matter regulations will likely become more rigorous, and more stringent controls will apply to power plants located in communities which are not achieving the relevant clean air standards.

On December 31, 2012, the North American Electric Reliability Corporation (“NERC”) filed with FERC a new reliability standard, EOP-004-2, that would require certain entities to report any event that impacts or could impact the reliability of the power grid.  Among other requirements, the proposed standard would require responsible entities to establish both an operating plan and a timeframe for reporting the events.

On January 9, 2013, Google announced its approximately $200 million equity investment in the Spinning Spur Wind Project, a 161 megawatt, 70 turbine wind facility built by EDF Renewable Energy in Oldham County, near Amarillo, Texas.  The energy created at Spinning Spur is contracted to Southwestern Public Service Company, which primarily serves customers in Texas and New Mexico.

On December 18, 2012, the U.S. Court of Appeals for the District of Columbia Circuit (“DC Circuit”) again addressed the question of whether, and to what degree, FERC has the authority to regulate charges to electric generators for the use of station power.  Denying a petition for review by a group of generators from California led by Calpine Corporation (“Calpine”), the DC Circuit held that FERC properly recognized that its lack of jurisdiction over retail sales prevented it from regulating the netting periods used by utilities to assess station power charges.

On December 20, 2012, FERC issued two orders related to the Bonneville Power Administration’s (“Bonneville”) transmission service curtailment practices under a protocol originally called the Environmental Redispatch and Negative Pricing Policies (“Environmental Redispatch Policies”).  FERC both: (1) reaffirmed its authority under Federal Power Act (“FPA”) Section 211A and its exercise of that authority in this case in 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.

On December 21, 2012, EPA finally completed its reconsideration of four regulations designed to address hazardous air pollutant (“HAP”) emissions from industrial boilers and waste incinerators.  The rules are long overdue, considering that a court ordered EPA to finalize the rules in February 2011 and EPA itself promised to release the rule in April 2012.

On December 20, 2012, FERC issued Order No. 764-A, denying rehearing and affirming its Integration of Variable Energy Resources (“VER”) rule established in Order No. 764.  However, FERC did clarify various parts of its original VER rule and agreed to extend the rule’s compliance deadline from September 11, 2013, to November 12, 2013.  By extending the compliance deadline, FERC will allow transmission providers to implement their reforms outside of the summer peak season.