On June 11, 2019, FERC accepted Republic Transmission LLC’s (“Republic”) proposed transmission formula rate (“Formula Rate”) that will be incorporated into Midcontinent Independent Transmission System Operator, Inc.’s (“MISO”) tariff when Republic becomes a transmission owner in MISO.  Additionally, FERC granted Republic’s request for authorization to allow future affiliates or subsidiaries of Republic that undertake transmission projects in the MISO region to apply the Formula Rate, as well as the transmission rate incentives previously granted to Republic (“Incentives”).

On June 7, 2019, Judge Dennis Montali of the U.S. Bankruptcy Court of the Northern District of California San Francisco Division found that FERC’s finding that it had concurrent jurisdiction with the U.S. bankruptcy court over wholesale power agreements was “unenforceable in bankruptcy court and of no force on the parties before it.” Judge Montali further noted that if necessary, the U.S. bankruptcy court will “enjoin FERC from perpetuating its attempt to exercise power it wholly lacks.” At issue, on review by the bankruptcy court, was whether, pursuant to 28 U.S.C. 2201, the bankruptcy court has exclusive jurisdiction over Pacific Gas & Electric Company’s and Pacific Gas & Electric Corporation’s (collectively “Debtors”) right to reject a power purchase agreement (“PPA”) under Section 365 of the Bankruptcy Code, and whether FERC has concurrent jurisdiction to grant or deny PG&E’s rejection of any PPAs.

On June 12, 2019, FERC issued an order on paper hearing (“June 12 Order”) finding that Southwest Power Pool, Inc.’s (“SPP”) quick-start pricing practices are unjust and unreasonable and directing SPP to revise its Open Access Transmission Tariff (“Tariff”) to: implement quick-start pricing provisions in order to more accurately reflect the marginal cost of serving load; provide clear and transparent price signals that better reflect investment decisions; minimize production costs; and reduce uplift. Quick-start resources (also referred to as “fast-start resources”) are able to start within ten minutes or less to meet transient or unforeseen system needs. Previously, energy supply from quick-start resources had not necessarily been included in SPP’s unified pricing and dispatch run, but after the June 12 Order, quick-start resources in SPP may participate in setting market-clearing energy prices under certain circumstances.

On June 11, 2019, FERC accepted, suspended for five months, and set for hearing Southern California Edison Company’s (“SoCal Edison”) revised transmission owner tariff and formula rate (“Formula Rate”), which includes an increased base 2019 transmission revenue requirement (“2019 TRR”).  SoCal Edison’s proposed rate increase is intended to account for the increased financial risks associated with wildfires in California.   

On May 28, 2019, FERC issued an order approving Commonwealth Edison Company’s (“ComEd”) proposal to modify its formula transmission rate (“Formula Rate”) to recover its portion of the costs to construct, operate, and maintain the Superconductor Cable Development Project (the “Project”).  FERC also approved ComEd’s request for a transmission rate incentive to recover 100 percent of its prudently incurred costs if the Project is cancelled or abandoned for reasons outside ComEd’s control (“Abandonment Incentive”).  FERC found that the Project is properly treated as transmission plant, and thus eligible for recovery in ComEd’s Formula Rate and that the Commission’s approval of ComEd’s requested Abandonment Incentive is appropriate for the Project, which reflects an innovative use of an advanced technology that will improve system reliability.

On June 4, 2019, the U.S. Court of Appeals for the D.C. Circuit (“D.C. Circuit”) upheld FERC’s authorization for Tennessee Gas Pipeline Company (“Tennessee”) to build a new natural gas compressor station as part of its Broad Run Expansion Project (“the Project”).  Petitioners had argued, among other items, that FERC’s decision to approve the Project violated the National Environmental Policy Act (“NEPA”) by failing to address the reasonably foreseeable indirect environmental impacts resulting from: 1) increased gas production upstream of the Project, and 2) increased gas combustion downstream of the Project.  While the D.C. Circuit rejected the Petitioners’ arguments, it did so on jurisdictional grounds.  After concluding that FERC should have asked Tennessee for information about the upstream and downstream indirect environmental effects associated with the Project, the D.C. Circuit held that it lacked jurisdiction to conclude that FERC acted arbitrarily or capriciously because Petitioners did not argue that FERC violated NEPA by failing to seek out this information.

On May 23, 2019, FERC issued a 10-year pilot license to the Igiugig Village Council (“Igiugig Village”) to construct, operate, and maintain its 70-kilowatt hydrokinetic project located on the Kvichak River near the town of Igiugig, Alaska (“Igiugig Project”).  The Igiugig Project will enable to Igiugig Village to test new hydrokinetic technology to power the Igiugig Village.

On June 5, 2019, FERC revoked the self-certification for qualifying facility (“QF”) status of Eco Green Generation LLC’s (“Eco Green”) hybrid power generation facility (the “Facility”) located in and around Fairbanks, Alaska.  In doing so, FERC found that the Facility—which consists of a wind farm and twenty duel-fueled renewable diesel and propane engines intended to firm the energy generated by the wind farm—does not meet the criteria for a small power production QF or a cogeneration QF.

On May 16, 2019, FERC’s Offices of Electric Reliability and Enforcement issued the Summer 2019 Reliability and Energy Market Assessment (“2019 Summer Assessment”), a high-level summary of anticipated reliability challenges for the upcoming operating season and prospective assessment of electric and natural gas markets.  While higher than average temperatures are predicted for the West, South, and Eastern regions of the country this summer, the report concludes that reserve margins—a measure of the projected capability of anticipated resources to serve forecasted peak load—will be adequate in all regions except the Electric Reliability Council of Texas (“ERCOT”).  The 2019 Summer Assessment also predicts high hydroelectric power production in California, continued rapid growth in battery storage, wind, and solar capacity, as well as growth in demand for natural gas driven by new LNG export capacity.

On May 15, 2019, with the support of various Democratic co-sponsors, Senator Jeanne Shaheen (D-NH) reintroduced the “Public Engagement at FERC Act” (S. 1477) to amend the Federal Power Act to establish an Office of Public Participation and Consumer Advocacy (“Office of PPCA” or “Office”).  The bill was first introduced by Senator Shaheen in 2017 and was created to assist residential and small commercial energy consumers in participating in FERC proceedings.