Recently, several news outlets reported on the shortage of rare earth elements and the effect the shortage may have on technology development within the energy industry.  Specifically, rare earth elements are predominantly mined and refined in China, which is using more and exporting less of the resource.  If that trend continues, there is speculation that wind development and other renewable energy investment outside China could suffer. 

On January 29, 2010, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) conditionally approved the Southwest Power Pool Inc.’s (“SPP”) proposed interim interconnection service as well as its accompanying pro forma Interim Large Generator Interconnection Agreement (“Interim LGIA”). 

On January 29, 2010, the United States Court of Appeals for the DC Circuit (“DC Circuit”) denied a petition by state utility regulators in New England to challenge a Federal Energy Regulatory Commission (“FERC” or the “Commission”) decision that applied a higher return on equity (“ROE”) rate for ISO New England, Inc. (“ISO-NE”) as an incentive to complete transmission projects more quickly. 

On January 21, 2010, FERC issued a declaratory order that Western Grid Development LLC’s (“Western Grid”) battery storage devices (“Projects”) are wholesale transmission facilities subject to FERC jurisdiction.  FERC also granted Western Grid’s request for incentive rate treatment for the Projects.  However, FERC reiterated that since energy storage devices do not fit easily into the category of traditional generation, transmission, or distribution, FERC will assess storage devices on a case-by-case basis.