On March 9, 2009, Texas Representative Jim Keffer (R) and Senator Wendy Davis (D) filed several bills that would drastically alter the electricity market in Texas. Both lawmakers say the bills aim to cut wholesale electricity prices, but the bills met instantaneous opposition from state power companies, specifically NRG Energy Inc. (“NRG”) and Energy Future Holding’s Luminant (“Luminant”).

On Monday, Commissioner Joseph T. Kelliher announced that we would leave the Federal Energy Regulatory Commission (“FERC” or “Commission”) effective today. Commissioner Kelliher’s announcement was expected even though his term does not end until 2012. Commissioner Kelliher has served at FERC since November 20, 2003 and was chairman from July…

On Tuesday, Senator Jeff Bingaman (D-NM) released draft legislation on transmission siting, planning and cost allocation. Senator Harry Reid (D-NV) introduced similar legislation last week (see March 6, 2009 edition of the WER). While Sen. Reid’s bill strengthens FERC’s existing backstop siting authority, Sen. Bingaman’s proposal would allow project developers to go directly to FERC and bypass the state approval process altogether in certain circumstances.

On Thursday, FERC Acting Chairman Jon Wellinghoff testified before the U.S. Senate’s Committee on Energy and Natural Resources on siting of electric transmission lines. Acting Chairman Wellinghoff’s testimony was part of a full committee hearing that included witnesses representing federal and state commissions, transmission and electricity companies, and regional entities.

In a Notice of Proposed Rulemaking issued by the U.S. Environmental Protection Agency (“EPA”) on March 10, 2009, EPA has proposed a nationwide system for the reporting of greenhouse gas (“GHG”) emissions by large industrial sources. In doing so, the Agency has taken the initial step toward federal regulation of GHG emissions.

The National Ambient Air Quality Standard (“NAAQS”) for ozone established by the EPA under the Bush administration was challenged by a coalition of environmental and health advocacy groups, and is currently the subject of pending litigation in the U.S. Court of Appeals for the D.C. Circuit. EPA has now requested that the briefing schedule in that case be suspended for six months, in order for the new administration to review the existing ozone NAAQS and determine whether revision is warranted.

On Thursday, Sen. Harry Reid (D-Nevada) introduced “The Clean Renewable Energy and Economic Development Act.” The bill would give the Federal Energy Regulatory Commission (“FERC” or “Commission”) the authority to step in if states are blocking the development of transmission lines designated to bring more renewable energy onto the nation’s electric grid.

On Monday, FERC hosted a technical conference entitled, Integrating Renewable Resources Into the Wholesale Electric Grid. Attention at the conference centered on the challenges that intermittent resources pose to the transmission system, as well as which entities should be responsible for regional planning.