On May 8, 2009, FERC rejected proposed amendments to Entergy Services, Inc.’s (“Entergy”) System Agreement regarding allocation of bandwidth payments and receipts, finding that the Commission does not have jurisdiction to determine the allocation of such costs between state jurisdictions.

On May 6, 2009, the North American Electric Reliability Corporation (“NERC”) approved revisions to eight cyber security standards for America’s bulk power system as part of their standards revision work plan. The primary revision was the removal of “reasonable business judgment” language in response to concerns FERC voiced in Order No. 706 issued on January 18, 2008.

On Wednesday, the Senate Energy and Natural Resources Committee (“Energy Committee”) released a joint staff draft of Chairman Jeff Bingaman’s (D-NM) energy bill that would address concerns by states on cost allocation as well as give the Department of the Interior authority to site new transmission lines on federal lands.

On Thursday, FPL Group, Inc. (“FPL”) announced that former FERC Chairman Joseph T. Kelliher will serve as the company’s Executive Vice President, Federal Regulatory Affairs. The newly created position will have Kelliher oversee all of FPL’s federal energy regulatory policy matters. Kelliher will report directly to FPL’s Chairman and CEO.

On Wednesday, members of the Senate Energy and Natural Resources Committee (“Energy Committee”) discussed Chairman Senator Jeff Bingaman’s (D-NM) revised “discussion draft” transmission siting legislation. Previously, Senator Bingaman released draft legislation on March 10, 2009 (see March 13, 2009 edition of the WER).

The Obama Administration on Tuesday overturned Endangered Species Act (“ESA”) regulations passed under President George W. Bush that had modified requirements for government agencies to consult with federal biologists prior to undertaking projects with the potential to affect threatened or endangered plants and animals.

On April 21, 2009, Georgia Governor Sonny Purdue signed the Georgia Nuclear Energy Financing Act (“Act”). The Act provides that a Georgia utility shall recover its costs of financing associated with the construction of a nuclear generating facility during the construction period after the proposed plant’s certification by the Georgia Public Service Commission (“GPSC”).

On April 22, the Department of the Interior’s Minerals Management Service (“MMS”) approved final regulations to establish a program to grant leases, easements, and rights-of-way (“ROW”) for renewable energy activities on the Outer Continental Shelf (“OCS”). The final rule is effective as of June 29, 2009.