On July 12, 2012, FERC denied NorthWestern Corporation’s (“NorthWestern”) request for rehearing of a December 30, 2011 order (“December 30 Order”) which rejected, in part, NorthWestern’s proposal to modify Schedule 3, Regulation and Frequency Response Service (“Schedule 3”) of its Montana Open Access Transmission Tariff (“July 12 Rehearing Order”).  The requested modifications rejected by the Commission included, among other things, creation of an explicit right for NorthWestern to apply certain Schedule 3 charges to customers who elect to self-supply regulating reserves. 

On July 10, 2012, the National Transportation Safety Board (“NTSB”) approved a staff report that faults both Enbridge Energy, Limited Partnership (“Enbridge”) and the Pipeline and Hazardous Materials Safety Administration (“PHMSA”) for a 2010 pipeline rupture that spilled almost 850,000 gallons of crude oil in Marshall, Michigan. 

On July 10, 2012, the New York State Board on Electric Generation Siting and the Environment (“Siting Board”) approved regulations that will implement a centralized state siting process for power plants 25 MW or greater.  The regulations are designed to consolidate the state and local permitting processes.

On July 5, 2012, FERC announced the details for its upcoming technical conferences on better coordination between natural gas and electricity markets.  The conferences follow public comments filed earlier this year in Docket No. AD12-12-000 and focus on a variety of issues, including: (1) communications, coordination and information sharing; (2) scheduling; (3) market structures and rules; and (4) reliability concerns. 

On July 2, 2012, FERC’s Office of Enforcement petitioned the U.S. District Court for the District of Columbia to order J.P. Morgan Ventures Energy Corp. (“JP Morgan”) to show cause why the court should not enforce a subpoena against JP Morgan.  At issue are 25 emails that JP Morgan has refused to produce in an ongoing FERC investigation into potential manipulation of the California and Midwest energy markets.

On July 2, 2012, the Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (“PHMSA”) proposed a record $3.7 million penalty in its Notice of Probable Violation and Proposed Civil Penalty (“NOP”) against Enbridge Energy, Limited Partnership (“Enbridge”).  The NOP stems from an oil spill on one of Enbridge’s pipelines in Marshall, Michigan. 

On June 29, 2012, the Environmental Protection Agency (“EPA”) finalized Step 3 of its Greenhouse Gas Tailoring Rule, but decided not to lower the 75,000 and 100,000 ton-per-year emission thresholds that currently allow minor sources of greenhouse gases to avoid permitting requirements.

Constellation Energy Commodities Group (“CECG”) recently requested Western Electricity Coordinating Council (“WECC”) certification for two new Balancing Authorities (“BAs”).  One BA would be located at the Mid-Columbia trading hub (“Mid-C”) and focus on providing ancillary services to wind generators in the Northwest region, while the other BA would be set up for NaturEner USA’s 189 MW Rim Rock wind power project in Montana.

On June 25, 2012, the Supreme Court of the United States (“Supreme Court”) denied a petition for certiorari challenging a decision by the Court of Appeals for the Ninth Circuit (“9th Circuit”) that FERC’s Order No. 697, “Market-Based Rates For Wholesale Sales Of Electric Energy, Capacity And Ancillary Services By Public Utilities” does not violate the Federal Power Act (“FPA”).  The Supreme Court did not discuss its reasons for denying the petition.