On November 24, 2010, FERC issued an order granting Alta Wind Holdings, LLC’s (“Alta Wind”) petition for a declaratory order asking FERC to disclaim jurisdiction over certain investors in sale or leaseback transactions of wind projects.
FERC Issues NOPR on Integrating VERs
FERC Clarifies Return on Equity for Transmission Projects
On November 18, 2010, FERC clarified through three different orders that when a transmission developer submits a proxy group for return on equity (“ROE”) proposals, the proxy group does not have to be located in the same geographic region as the developer.
NERC Directed to Revise Definition of the Bulk Electric System
On November 18, 2010, FERC directed the North American Electric Reliability Corporation (“NERC”) to revise the definition of the bulk electric system to include all facilities necessary for operating an interconnected transmission network. FERC said this is best achieved by eliminating the ability of regions to have discretion over the definition, and the definition should include all facilities at or above 100 kV except defined radial facilities.
The Lights Go Out at New Meadowlands Stadium
On Sunday, November 14, 2010, a brief blackout occurred during the third quarter of the National Football League (“NFL”) game between the New York Giants and the Dallas Cowboys. The blackout left 81,000 spectators in complete darkness after an initial dimming of the lights caused the officials to halt play.
EPA Finally Issues BACT Guidance for Greenhouse Gas Permitting
On November 10, 2010, EPA issued its long-awaited Best Available Control Technology (“BACT”) guidance for the new greenhouse gas (“GHG”) permitting requirements scheduled to take effect on January 2, 2011, less than two months from now. The information applies to two permitting programs— the “PSD” program, under which new and modified sources having the potential to emit air pollutants above a certain amount must obtain a preconstruction air quality permit, and the Title V program, under which sources having the potential to emit air pollutants above a certain amount must obtain an operating permit.
DC Circuit Considers Whether Auction Rates Are “Contract Rates” Under Mobile-Sierra
On November 5, 2010, the United States Court of Appeals for the District of Columbia Circuit (“D.C. Circuit”) issued its remand opinion in Maine Public Utilities Commission v. FERC. The D.C. Circuit remanded the case back to the Federal Energy Regulatory Commission (“FERC” or the “Commission”) for further consideration of the Commission’s position that, while auction rates may not be contract rates, the Mobile-Sierra doctrine nevertheless applies.
Wind Generators Appeal NERC Decision to Force Them to Register as Transmission Owners and Operators
On October 27, 2010, Cedar Creek Wind LLC (“Cedar Creek”) and Milford Wind Corridor Phase I, LLC (“Milford”) filed two separate appeals with FERC to challenge a decision by the North American Electric Reliability Corporation (“NERC”) that would force the wind generators to register as a transmission owner and operator.
California Voters Turn Down Proposition 23
On November 3, 2010, California reported that 61.2% of voters in California defeated Proposition 23 (“Prop 23”). Prop 23 would have suspended California’s Global Warming Solution Act of 2006 (“AB 32”), which requires the state to reduce greenhouse gas emissions 30 percent by 2020, until California’s unemployment rate is 5.5 percent or less for a calendar year. (see October 8, 2010 edition of the WER).
Exelon, AEP, and ETA will Develop New Transmission Line
On November 1, 2010, Exelon Corporation (“Exelon”), American Electric Power (“AEP”), and Electric Transmission American (“ETA”) announced the companies will partner to build a new transmission line dubbed the Reliability Interregional Transmission Extension (“RITE Line”). The new project will construct 420 miles of extra high-voltage lines from Illinois to the border between Indiana and Ohio.