On October 28, 2010, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) issued an order approving a stipulation and consent agreement (the “Agreement”) between the Office of Enforcement (“Enforcement”) at FERC and North America Power Partners (“NAPP”).  Under the Agreement, NAPP will pay a civil penalty of $500,000 and disgorge $2,258,157, plus interest, in unjust profits.  Additionally, NAPP will begin compliance monitoring.

On October 29, 2010, FERC granted Southern California Edison Company (“SoCal Edison”) incentive rate treatment for their Lugo-Pisgah Transmission Project (“Lugo-Pisgah”) and Red Bluff Substation Project (“Red Bluff”) (collectively, the “Projects”).  Though the Commission determined in their October 29, 2010 order (the “Order”) that SoCal Edison did not meet the requirements of Federal Power Act (“FPA”) section 219 and Order No. 679 as projects which would improve reliability or reduce the cost of delivered power by reducing transmission congestion, the Commission exercised its authority under section 205 of the FPA to grant requested rate incentives on policy grounds.

On November 3, 2010, FERC denied Florida Power & Light Company’s (“FPL”) petition to reverse previous orders on FERC’s jurisdiction over interconnection agreements between a utility and a qualifying facility (“QF”).  FERC upheld Commission precedent on QF interconnection agreements as being consistent with the Federal Power Act (“FPA”), the Public Utility Regulatory Policies Act of 1978 (“PURPA”), and the FERC policies. 

On October 26, 2010, the North American Electric Reliability Corporation (“NERC”) released a Special Assessment, “Potential Resource Adequacy Impacts of U.S. Environmental Regulations” (the “Assessment”), which examines the impact of four potential Environmental Protection Agency (“EPA”) rules and proposed rules which could result in generating unit retirements or forced retrofits between 2013 and 2018. 

On October 21, 2010, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) conditionally approved the North American Electric Reliability Corporation’s (“NERC”) 2011 business plan and budget (“2011 Budget”), as well as the 2011 business plan and budget for the Regional Entities and Western Interconnection Regional Advisory Board (“WIRAB”). 

On October 21, 2010, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) conditionally approved the move of Duke Energy Ohio, Inc. and Duke Energy Kentucky, Inc (collectively “Duke”) from the Midwest Independent Transmission System Operator, Inc. (“Midwest ISO”) to PJM Interconnection, L.L.C. (“PJM”).

On October 21, 2010, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) clarified how California may promote new generation resources in a way that does not contradict federal laws (the “October 21 Clarification”).  The Commission also denied the California Public Utilities Commission’s (“CPUC”) request for rehearing.