On April 5, 2010, the New York Independent System Operator (“NYISO”) released its annual New York State energy report, Power Trends 2010: New York’s Emerging Energy Crossroads (the “Report”). The Report identified the key energy issues for New York along with several NYISO initiatives in place to address topics like energy efficiency, smart grid technology, renewable resource development, and transmission congestion.
Google Inc. and Others Urge Obama to Promote Ways for Consumers to Manage Energy Usage to Lower Greenhouse Gas Emissions
On April 5, 2010, Google Inc., the Climate Group and 45 other technology companies (collectively, the “Parties”) wrote a letter to President Barack Obama encouraging him to support the reduction of greenhouse gas emissions by promoting ways for electric consumers to monitor and manage their energy consumption.
House Subcommittee Sends Grid Act to Full Committee
On March 24, 2010, the House Energy and Environment Subcommittee unanimously voted to forward the Grid Reliability and Infrastructure Defense (“GRID”) Act to full committee without any amendments. The bipartisan bill would amend the Federal Power Act to give the Federal Energy Regulatory Commission (“FERC” or the “Commission”) authority to issue emergency orders for utilities to take protective action when the president declares a grid security “threat.”
Central Transmission Challenges PJM’s Transmission Planning and Cost Allocation Rules
On March 25, 2010, Central Transmission, LLC (“Central Transmission”) filed a complaint with FERC against PJM Interconnection, L.L.C. (“PJM”). Central Transmission claims that PJM’s tariff is unjust, unreasonable and unduly discriminatory because it does not provide the same regulated, rate-based recovery provisions to new transmission developers as it does to incumbent Transmission Owners.
FERC Decides Large Qualifying Facility Does Not have Nondiscriminatory Access to Markets
On March 18, 2010, FERC found New York State Electric and Gas Corp. (“NYSEG) and Rochester Gas and Electric Corp. (“RG&E”) must continue to buy excess output from a cogeneration facility owned and operated by Cornell University (“Cornell”). As such, FERC’s ruling marked the first time that FERC has determined that a large qualifying facility (“QF”) does not have nondiscriminatory access to markets, in the wake of legislative changes included in the Energy Policy Act of 2005.
House Energy & Environment Subcommittee Questions FERC Commissioners on Transmission Cost Allocation
On March 23, 2010, the House Subcommittee on Energy and Environment held a hearing entitled “Oversight of the Federal Energy Regulatory Commission” to examine how the Federal Energy Regulatory Commission (“FERC” or the “Commission”) is implementing its statutory duties and authorities. The four current FERC commissioners testified at the hearing and then responded to questions from subcommittee members, including questions about transmission planning and cost allocation.
FERC Issues NOPR on Compensating for Demand Response
On March 18, 2010, FERC issued a Notice of Proposed Rulemaking (“NOPR”) proposing to improve competiveness in organized wholesale energy markets by compensating demand response resources (“DRRs”) based upon the Locational Marginal Price (“LMP”) in the appropriate Regional Transmission Organization (“RTO”) or Independent System Operator (“ISO”).
FERC Accepts NERC’s Implementation Plan regarding CIP Standards
On March 18, 2010, FERC approved the North American Electric Reliability Corporation’s (“NERC”) plan to implement eight Critical Infrastructure Protection Reliability Standards, CIP-002-1 through CIP-009-1 (“CIP Standards”) by generator owners and operators of nuclear power plants in the United States (“Implementation Plan”). NERC’s Implementation Plan was filed on January 19, 2010 as part of a compliance filing in response to FERC’s request for additional information on December 17, 2009.
Senate Confirms Three to Nuclear Regulatory Commission
On March 19, 2010, the United States Senate confirmed three nominees, George Apostolakis, William Magwood, and Bill Ostendorff, to the Nuclear Regulatory Commission (“NRC”) by unanimous consent instead of a roll-call vote. The three new commissioners will join sitting chairman Gregory Jaczko, a Democrat, and Republican Commissioner, Kristine Svinicki on the five-member agency.
DOE, DOI, and Army Corps Sign MOU on Hydropower
March 29, 2010
The U.S. Department of Energy (DOE), Department of the Interior (DOI) through the Bureau of Reclamation (Reclamation), and Department of the Army (DOA) through the U.S. Army Corps of Engineers (USACE), announced on March 24, 2010 the signing of a Memorandum of Understanding (MOU) between the federal agencies to promote the development of hydropower. Pursuant to the MOU, studies will be conducted over the next few years that may help industry determine which Federal dams and reservoirs would be best suited for non-Federal hydropower development. The process will hopefully determine which sites will have the fewest roadblocks from stakeholders, including the federal dam owners themselves. These studies may also lead to a determination of which projects can be most efficiently integrated into the grid.