On February 20, 2025, FERC Chairman Mark Christie announced an upcoming Commissioner-led technical conference on resource adequacy in Regional Transmission Organization (“RTO”) and Independent System Operator (“ISO”) regions. The technical conference will take place over two days at FERC headquarters in Washington, D.C. on June 4, 2025, and June 5, 2025.
FERC Reinstates Authorization for Transco Pipeline Expansion Project
On January 24, 2025, FERC reinstated a certificate of public convenience and necessity (“CPCN”) for Transcontinental Gas Pipe Line Company’s (“Transco”) Regional Energy Access Expansion Project (“Project”) after the D.C. Circuit vacated and remanded FERC’s initial order certificating the Project (“Certificate Order”).
In January 2023, FERC granted Transco a CPCN…
FERC Withdraws Draft GHG Policy Statement and Terminates Associated Proceeding
On January 24, 2025, FERC withdrew its 2022 draft Greenhouse Gas (“GHG”) Policy Statement and terminated the associated proceeding. FERC determined that, after reviewing the entire record, issues concerning GHG emissions are better analyzed on a case-by-case basis when raised by parties in proceedings. Commissioners Phillips, Rosner, and Chang issued a joint concurrence noting that, although FERC is withdrawing its draft GHG Policy Statement, FERC still considers GHG emissions under its National Environmental Policy Act (“NEPA”) analysis and balances project benefits with potential adverse consequences under the Natural Gas Act (“NGA”).
FERC Accepts NYISO’s Proposal Regarding their 2025-2029 Demand Curve Reset
On January 28, 2025, FERC accepted the New York Independent System Operator, Inc.’s (“NYISO”) proposed revisions to its Market Administration and Control Area Services Tariff (“Services Tariff”). The revisions define the demand curves in the Installed Capacity (“ICAP”) Market for the 2025/2026 Capability Year and implement a quadrennial process, known as the Demand Curve reset (“DCR”), which outlines the methodologies and inputs for subsequent annual updates to the ICAP Demand Curves for the 2026/2027, 2027/2028, and 2028/2029 Capability Years.
Court Finds FERC Appropriately Evaluated Decision to Retain Dams in License Surrender
On January 14, 2025, the U.S. Court of Appeals for the D.C. Circuit (“D.C. Circuit”) held that FERC complied with the National Environmental Policy Act (“NEPA”) in approving the surrender of a hydroelectric project license. The court found that FERC had adequately considered the alternative of dam removal and determined that keeping the dams in place outweighed any potential benefits to recreation, fisheries, and other environmental concerns. The case, American Whitewater v. FERC, involved a challenge to FERC’s license surrender decision regarding the Somersworth Hydroelectric Project (“Project”) on the Salmon Falls River, which spans the border between New Hampshire and Maine.
FERC Approves Contested Settlement Agreement and Rate Schedule for Provision of Reliability Must-Run Service
On January 16, 2025, FERC approved a contested settlement agreement and rate schedule governing the provision of reliability must-run (“RMR”) service from the Indian River Unit 4 generating facility (“Unit 4”) in PJM Interconnection, L.L.C. (“PJM”).
President Trump Names Christie as FERC Chairman and Signs Energy-Related Executive Orders
On January 20, 2025, Donald Trump was sworn in as the 47th President of the United States. On his first day in office, President Trump signed various executive orders effectuating administrative and policy changes across the federal government, including naming a new FERC Chairman and declaring a national energy emergency.…
FERC Issues Nearly $1B Market Manipulation Penalty Regarding Alleged Energy Efficiency Projects
On December 16, 2024, the Federal Energy Regulatory Commission (“FERC”) directed American Efficient, LLC, its subsidiaries, and corporate parents (collectively, “American Efficient”) to show cause why American Efficient should not be found to have violated anti-manipulation rules. The order alleges that American Efficient engaged in a manipulative scheme to extract millions of dollars in capacity payments from Midcontinent Independent System Operator, Inc. (“MISO”) and PJM Interconnection, L.L.C. (“PJM”) for energy efficiency projects that did not actually reduce energy use. FERC also requested American Efficient to show cause why they should not disgorge over $253 million in unjust profits and pay a civil penalty of $722 million.
PSE&G to Pay $6.6 Million Penalty for Failing to Provide Full and Accurate Information to PJM
On December 5, 2024, the Federal Energy Regulatory Commission (“FERC”) approved Public Service Electric and Gas Company’s settlement agreement (“PSE&G”) to pay a $6.6 million civil penalty to resolve an ongoing investigation with FERC’s Office of Enforcement (“FERC Enforcement”). According to FERC’s order, the underlying investigation involved PSE&G’s alleged failure to provide full and accurate information when seeking approval from PJM Interconnection, L.L.C. (“PJM”) to replace a transmission line in New Jersey as part of the PJM Regional Transmission Expansion Plan (“RTEP”) process. PSE&G also agreed to submit to annual compliance monitoring for up to two years as part of the approved Stipulation and Consent Agreement (“Stipulation”).
D.C. Circuit Upholds FERC Order Requiring Stingray to Restore Service Before Abandoning Damaged Pipeline
On December 20, 2024, the United States Court of Appeals for the District of Columbia Circuit (“D.C. Circuit”) upheld FERC’s order authorizing Stingray Pipeline Company, L.L.C. (“Stingray”) to abandon a portion of its pipeline system on the condition that before doing so, Stingray either restore service or obtain a shipper agreement that the damaged pipeline segment remain out of service.