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.
NERC Issues Special Assessment on Impact of Four Potential EPA Rules
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.
NERC Releases Long-Term Reliability Assessment
On October 20, 2010, the North American Electric Reliability Corporation (“NERC”) released its 2010 Long-Term Reliability Assessment. The annual ten-year reliability assessment evaluates the bulk power system, and it identifies new trends and areas of concern.
FERC Conditionally Approves NERC’s 2011 Business Plan and Budget; Budget Increase to Top 32 Percent
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”).
FERC Releases Credit Reform Rules
On October 21, 2010, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) released Order No. 741, Credit Reforms in Organized Wholesale Electric Markets. The new rule finalizes credit reforms to allow for more liquidity while protecting consumer interests.
FERC Approves Duke’s Initial Application to Move from Midwest to PJM
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”).
Northeast Utilities and NSTAR to Merge
On Monday, October 18, 2010, Northeast Utilities (“NU”) and NSTAR announced their companies’ Boards of Trustees unanimously approved a merger agreement for a large utility valued at $17.5 billion. This newly-formed utility will be known as Northeast Utilities.
FERC Provides Clarification on California Feed-in Tariff
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.
FERC Releases Winter Market Assessment
On October 21, 2010, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) released the winter 2010-2011 Energy Market Assessment (the “assessment”) and presented the results at FERC’s October public meeting.
Trans-Elect, Google, Marubeni, and Good Energies Partner to Build Offshore Wind Transmission Lines
On October 12, 2010, Google, Trans-Elect Development Company, LLC (“Trans-Elect”), Good Energies, and Marubeni Corporation (“Marubeni”) announced that the four entities are partnering to create the Atlantic Wind Connection project. The Atlantic Wind Connection project will create an underwater transmission “backbone” to connect more than 6,000 MW of offshore wind through more than 350 miles of high voltage direct current (“HVDC”) lines.