On April 16, 2012, FERC approved an application filed by Cheniere Energy Inc.’s subsidiaries Sabine Pass Liquefaction, LLC and Sabine Pass LNG, L.P. (collectively “Sabine Pass”) to site, construct, and operate a liquefied natural gas (“LNG”) export facility in Cameron Parish, Louisiana. Separately, the Commission released an order vacating Jordan Cove Energy Project, L.P.’s (“Jordan Cove”) December 17, 2009 authorization to build an LNG import terminal in Coos County, Oregon.
DC Circuit Sides with Mobil’s Pegasus Pipeline in Market-Based Rate Proceeding
On April 17, 2012, the United States Court of Appeals for the District of Columbia Circuit (“D.C. Circuit”) found unreasonable FERC’s decision to deny Mobil Pipeline Company’s (“Mobil”) application to charge market-based rates on its crude oil pipeline, Pegasus.
FERC Issues Notice of Inquiry on Open Access and Priority Rights on Interconnection Facilities
On April 19, 2012, FERC issued a Notice of Inquiry (“NOI”) on the open access and priority rights associated with capacity on interconnection facilities. The NOI is a direct result of a March 2011 technical conference.
FERC Staff Presents 2011 State of the Markets
On April 19, 2012, FERC’s Office of Enforcement presented its 2011 State of the Markets report at FERC’s monthly meeting. The State of the Markets report is an annual presentation of staff’s assessment of natural gas, electric, and other energy markets.
Court of Appeals hears Oral Argument on Cross-State Air Pollution Rule
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).
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.