On October 20, 2009, the General Counsel for the Federal Energy Regulatory Commission (“FERC” or the “Commission”) submitted comments to the Commodity Futures Trading Commission (“CFTC”) stating that FERC has exclusive jurisdiction over the transmission and sale of electricity in interstate commerce or with regulation of wholesale energy markets.
Obama Administration Awards Smart Grid Grants
On Tuesday, President Barack Obama announced the award of $3.4 billion in the Department of Energy’s Smart Grid Investment Grant program to a list of one hundred companies and communities in forty-nine states in an effort to modernize the electricity grid.
Texas PUC Defends Decision that Wind Developer Cannot Provide Firm Power
On October 22, 2009, the Public Utility Commission of Texas (“PUCT” or “Texas Commission”) asked the Federal Energy Regulatory Commission (“FERC” or the “Commission”) to dismiss an enforcement petition from six wind power developers, stating that the developers mischaracterized the PUCT’s decision not to allow the developers to sell output from their qualifying facilities (“QF”) at avoided cost rates.
FERC Proposes Changes to Qualifying Facility Rules
On October 15, 2009, the Federal Energy Regulatory Commission (“FERC” or “the Commission”) issued a Notice of Proposed Rulemaking to revise the criteria and procedures for existing or proposed small power production or cogeneration facilities seeking Qualifying Facility (“QF”) status. The Commission has also proposed to clarify that eligible solar, wind, waste or geothermal facilities that are QFs will be exempt from certain provisions of the Federal Power Act (“FPA”) and Public Utility Holding Company Act of 2005 (“PUHCA 2005”), regardless of size.
FERC Denies Rehearing on New York Transmission Cost Allocation Rules
On October 15, 2009, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) denied New York Regional Interconnect, Inc.’s (“NYRI”) request for rehearing of FERC’s Order on Rehearing, which affirmed its acceptance of the New York Independent System Operator’s (“NYISO”) cost allocation and recovery requirements for economic upgrades to the transmission system. The Commission’s decision may render NYRI’s proposed $2 billion transmission project infeasible.
PJM Approves $1.4 Billion Transmission Upgrade Plan
On October 15, 2009 the PJM Interconnection (“PJM”) Board approved an additional $1.4 billion in electric transmission grid upgrades and enhancements. This brings PJM’s total investment in their Regional Transmission Expansion Planning (“RTEP”) process since 2000 to $14.7 billion.
FERC Reviews NERC Budget, Voices Concern About Staffing Levels
On October 15, 2009, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) conditionally accepted the 2010 business plan and budget for the North American Electric Reliability Organization (“NERC”), the regional reliability entities and the Western Interconnection Regional Advisory Board. In its order, FERC expressed considerable concern about the staffing levels at NERC and whether they are sufficient for the organization to carry out its mission.
FERC Generally Reaffirms Standards of Conduct
On October 15, 2009, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) issued its rehearing of Order No. 717, Standards of Conduct for Transmission Providers (“SOC”).
California Federal Court Dismisses Global Warming Common Law Nuisance Lawsuit
On October 15, 2009, the United States District Court for the Northern District of California (the “Court”) dismissed a lawsuit brought by the Kivalina Alaska Native Village and others against a large number of energy companies, continuing the saga of whether energy companies can be sued under tort law for emitting greenhouse gases (“GHGs”).
FERC Confirms Reliability Jurisdiction Over Federal Agencies
On October 15, 2009, the Commission issued an order confirming its jurisdiction to enforce reliability standards over federal agencies that use, own or operate the bulk power system.