On June 8, 2018, the U.S. Court of Appeals for the District of Columbia Circuit (“D.C. Circuit”) upheld FERC’s re-examination of an order regarding the effective rate for network upgrades in an Interconnection Agreement (“IA”) with the PJM Interconnection, L.L.C. (“PJM”).  A power developer, West Deptford Energy, LLC (“West Deptford”), requested interconnection with PJM.  After the negotiations for the IA commenced, PJM’s effective rate changed, triggering a dispute between the parties as to the appropriate effective rate for the IA: the rate in effect at the start of negotiations or the rate in effect at the time the IA was completed. The D.C. Circuit agreed with FERC’s finding that the governing rate is the rate in effect at the time the IA was completed.

On June 7, 2018, the House Energy and Commerce Committee’s Subcommittee on Energy held a hearing to review improving interagency coordination for the timely processing of environmental reviews and authorizations for non-Federal hydropower projects.  The hearing focused on delays in the licensing process and how interagency coordination can improve licensing reviews.

On June 5, 2018, FERC granted the PJM Interconnection, L.L.C. (“PJM”) independent market monitor’s (“IMM”) request to compel the American Electric Power Services Corporation (“AEP”) to provide certain information related to cost-based offers to the IMM.  The IMM stated in its petition that it needed the information to determine whether AEP’s total costs of variable operations and maintenance (“VOM”) included in its capacity offer raise any market power concerns in the PJM Energy Market.  FERC determined that because the IMM had broad authority under PJM’s Open Access Transmission Tariff (“Tariff”) to request such information, it would grant the IMM’s petition.

On May 24, 2018, the U.S. Department of Energy’s (“DOE”) Inspector General (“IG”) released an audit report of FERC’s natural gas pipeline certificate process, concluding that DOE “did not find any concerns that called into question the appropriateness of decisions FERC made on natural gas certification applications.”  The audit, which was conducted between October 2015 to May 2018, asked whether FERC’s certification process conformed to relevant laws, regulations, policies, and procedures, including timeliness and stakeholder input.  While DOE’s IG concluded that FERC generally performed the certification process in accordance with such laws and procedures, DOE’s IG also identified certain areas as needing improvement, including process transparency, public access to FERC records, tracking stakeholder comments, and data integrity.

On May 31, 2018, CPV Power Holdings, L.P., Calpine Corporation, and Eastern Generation, LLC (together, “Complainants”) filed a complaint against PJM Interconnection, L.L.C. (“PJM”), contending that PJM’s Open Access Transmission Tariff (“Tariff”) does not prevent the suppression of prices in PJM’s Reliability Pricing Model (“RPM”) market by resources receiving state subsidies, and that the solutions that PJM had proposed to FERC—“Capacity Repricing” and “Minimum Offer Price Rule (“MOPR”)-Ex”—are “inadequate and unjust and unreasonable.”  The Complainants argued that FERC should instead require PJM to adopt a “Clean MOPR”—meaning a MOPR “applicable to all subsidized resources and without categorical exemptions like those in PJM’s MOPR-Ex proposal.”

On May 29, 2018, the U.S. Department of Justice (“DOJ”) and FERC argued in a joint brief (“Joint Brief”) filed with the U.S. Court of Appeals for the Seventh Circuit (“Seventh Circuit”) that Illinois’ plan to provide credits to nuclear power plants does not interfere with FERC’s authority over wholesale electricity markets.  DOJ and FERC filed the Joint Brief in response to the Seventh Circuit’s request asking the agencies for their views on whether the Federal Power Act (“FPA”) preempts Illinois’ zero emission credits program (“Illinois ZEC Program”).

On May 24, 2018, FERC denied a complaint filed by the New Jersey Board of Public Utilities (“NJBPU”) alleging unjust and unreasonable cost allocations for the Bergen-Linden Corridor transmission project (the “Project”) within the PJM Interconnection, L.L.C. (“PJM”) footprint.  FERC rejected NJBPU’s claims that, among other alleged problems, PJM’s implementation of certain provisions in its tariff and the Joint Operating Agreement (the “JOA”) with the New York Independent System Operator, Inc. (“NYISO”) unfairly insulated New York ratepayers from costs associated with the Project, at the expense of New Jersey ratepayers and in violation of FERC’s Order No. 1000.  

On May 22, 2018, GlidePath Power Solutions LLC (“GlidePath”) filed a complaint with FERC under sections 206 and 306 of the Federal Power Act alleging that PJM Interconnection, L.L.C. (“PJM”) improperly rejected GlidePath’s interconnection request for a proposed battery storage facility (the “Project”).  GlidePath alleged that PJM relied on an impermissible interpretation of its generator interconnection rules, which require demonstration of site control, to unjustly deny interconnection service for the Project, resulting in cancellation of the Project’s interconnection request.  In its complaint, GlidePath requested that FERC find that PJM unjustly, unreasonably, and incorrectly applied its rules regarding site control, and that PJM must restore the queue position held by the Project. 

On May 17, 2018, FERC issued a Notice of Proposed Rulemaking (“NOPR”) in which it proposed to approve Reliability Standard TPL-007-2 (Transmission System Planned Performance for Geomagnetic Disturbance Events) submitted by the North American Electric Corporation (“NERC”).  Geomagnetic disturbance (“GMD”) events result from charged particles ejected from the sun that interact with and cause changes in the earth’s magnetic fields, impacting flows on electric power systems and potentially causing voltage instability and equipment failure.