On February 29, 2012, GenON Energy, Inc. (“GenON”) announced its 2011 financial results, and plans to deactivate 3,140 MW of generating capacity in the PJM Interconnection LLC (“PJM”) region between 2012 and 2015.  GenON’s news release pointed to costs for additional environmental controls and stated that “forecasted returns on investments necessary to comply with environmental regulations are insufficient.”

On February 22, 2012, Duke Energy Carolinas, LLC (“DEC”) and Progress Energy Carolinas, Inc. (“PEC”) filed with the North Carolina Utilities Commission a description of the revised merger-related market power mitigation plan it aims to submit to FERC next month (the “Revised Mitigation Plan”). 

On February 17, 2012, FERC issued notice of a technical conference on Reactive Power Capability.  The technical conference is being held to consider potential issues regarding the need for reactive power capability among newly interconnecting asynchronous generators and  the need and efficacy of continuing the process established for wind resources under Order No. 661-A. 

On February 16 and 17, 2012, the U.S. Court of Appeals for the District of Columbia issued opinions that rejected efforts by environmental groups to compel the EPA to tighten the fine particulate matter standards in its National Air Ambient Air Quality Standards (“NAAQS”) rule, and to review the EPA’s withdrawal of its proposed national standard for ground-level ozone.

On February 23, 2012, FERC staff issued a request for comments on proposed metrics to measure performance in regions outside of Regional Transmission Organizations (“RTO”) and Independent Systems Operators (“ISO”).  FERC, working in conjunction with the Edison Electric Institute and its members, has started the process of developing these metrics that will measure performance in regions outside of RTOs and ISOs.  These metrics are based upon metrics that were previously developed to measure performance within the regions of RTOs and ISOs.

On February 13, 2012, FERC asked Congress to authorize the agency’s $304.6 million budget request for 2013.  This is the same amount FERC requested for fiscal year 2012.  FERC’s budget request states it will focus on two overarching goals for the year: (1) ensuring just and reasonable rates, terms and conditions; and (2) facilitating the deployment of new infrastructure. 

On February 16, 2012, FERC issued a notice of proposed rulemaking (“NOPR”) proposing to revise its regulations governing interstate natural gas pipeline business practices and standards.  FERC’s proposed rule would adopt and incorporate by reference, (with certain exceptions) certain standards adopted by the Wholesale Gas Quadrant of the North American Energy Standards Board (“NAESB”).

On February 16, 2012, the Commission issued an order retaining its existing policies concerning the analysis of horizontal market power in connection with transactions under section 203 of the Federal Power Act.  The Commission declined to revise its policies to incorporate the Department of Justice and Federal Trade Commission’s August 19, 2010 Horizontal Merger Guidelines (the “2010 DOJ/FTC Guidelines”), as previously contemplated by its March 17, 2011 Notice of Inquiry (“NOI”).