On December 22, 2009, the California ballot initiative, Proposition 23 (“Prop 23”) was introduced by Thomas W. Hiltachk.  Prop 23 would suspend 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 1, 2010 edition of the WER). 

On the heels of receiving dozens of submissions in response to the Midwest Independent System Operator, Inc.’s (“MISO”) “MVP” cost allocation filing, (see July 23, 2010 edition of the WER) the Federal Energy Regulatory Commission (“FERC”) this week received well over one hundred submissions in response to its Notice of Proposed Rulemaking (“NOPR”) on transmission planning and cost allocation (see June 18, 2010 edition of the WER). Interestingly, FERC also issued a Notice indicating that reply comments in the NOPR docket would not be due until November 12, 2010, which indicates that agency action on the NOPR is highly unlikely before the end of the year.

On September 17, 2010, FERC accepted proposed revisions to PJM Interconnection, L.L.C.’s (“PJM”) Operating Agreement, and Attachment K to their open access transmission tariff (“Tariff”).  The changes represented a “temporary solution” to prevent alleged manipulation in PJM’s energy markets.  The September filings were preceded by a lengthy history, as summarized below.

On September 23, 2010, FERC settled with RRI Energy, Inc. and RRI Energy Wholesale Generation LLC (collectively “RRI”) over open access transportation violations, and RRI agreed to pay a civil penalty of $750,000. The settlement concluded an investigation by FERC Enforcement that identified potential violations from January 2000 to March 2008.

On September 23, 2010, the California Air Resources Board (“CARB”) passed a renewable portfolio standard (“RPS”) that will require 33 percent of the electricity sold in California to come from renewable energy.   The new standard was created in response to the Governor’s Renewable Electricity Standard Order in 2009, and the state law Assembly Bill 32, the law seeking to bring emissions down to 1990 levels by the year 2020.  

On September 22, 2010, the New York Independent System Operator (“NYISO”) released its 2010 reliability needs assessment (“RNA”) which was approved by the Board of Directors.  This is the fifth RNA NYISO has released since 2004, when the Federal Energy Regulatory Commission (“FERC” or the “Commission”) approved NYISO’s Comprehensive System Planning Process.

On September 21, 2010, a bipartisan group of Senators introduced the Renewable Electricity Promotion Act, a stand alone renewable energy standard (“RES”) bill.  The bill will require utilities to acquire 3 percent of their power from renewable resources beginning in 2012, and the requirement will increase up to 15 percent by 2021. 

On September 20, 2010, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) issued a Final Rule, Promoting a Competitive Market for Capacity Reassignment.  This Order No. 739 lifts the price cap for all electric transmission customers reassigning transmission capacity, and the new rule is an attempt to develop a market for capacity reassignment in lieu of direct acquisitions of capacity from a transmission owner. 

On September 16, 2010, FERC rejected the North American Electric Reliability Corporation’s (“NERC”) request for rehearing and/or clarification of a March 18, 2010 directive to NERC to propose revisions to its Rules of Procedure, among other items. (see March 19, 2010 edition of the WER)

On September 9, 2010, the Department of Energy (“DOE”) announced more than $37 million in funding to 27 projects that will help develop marine and hydrokinetic (“MHK”) technologies.  This is the largest grant ever given to MHK technologies which generate power from the ocean, rivers, and streams.