On September 20, 2017, FERC rejected Southwest Power Pool, Inc’s (“SPP”) Order No. 825 compliance filing that would have created a demand curve to set scarcity prices for energy shortages.  Specifically, FERC held that SPP’s establishment of a demand curve to set scarcity prices was outside the scope of Order No. 825, which required SPP to establish triggers for shortage pricing, rather than change the actual shortage pricing levels.

On September 20, 2017, FERC issued two final rules and a notice of proposed rulemaking (“NOPR”) on reliability standards for the bulk power system. The final rules—Order Nos. 836 and 837—will become effective sixty days after their publication in the Federal Register.  Parties interested in filing comments on matters discussed in the NOPR must do so within sixty days of when that notice is published in the Federal Register.

On September 15, 2017, FERC issued an order determining that the New York State Department of Environmental Conservation’s (“NY DEC”) failure to act on Millennium Pipeline Co. LLC’s (“Millennium”) Clean Water Act (“CWA”) permit application before the statutory one-year deadline resulted in a waiver of its authority to issue the permit.  FERC’s decision has the effect of nullifying the NY DEC’s prior denial of Millennium’s permit application.  FERC’s order also allows Millennium to move forward with its “Valley Lateral Project” without the NY DEC’s water quality permit.  

On September 14, 2017, the Subcommittee on Energy of the United States House of Representatives Committee on Energy and Commerce held a hearing on defining reliability in a transforming electricity industry.  During the hearing, committee members raised concerns about reliability and grid transformation in the face of cybersecurity threats and extreme weather.  FERC Chairman Neil Chatterjee testified at the hearing that FERC would continue its role in ensuring “world-class reliability” during this grid transformation. 

On September 8, 2017, FERC rejected an unexecuted amendment to an interconnection service agreement (“Agreement”), which PJM Interconnection, LLC (“PJM”) filed on behalf of Hudson Transmission Partners, LLC (“HTP”). The amended Agreement sought to allow HTP to convert 320 MW of Firm Transmission Withdrawal Rights to Non-Firm Transmission Withdrawal Rights—a conversion opposed by another party to the Agreement, Public Service Electric and Gas Company (“PSEG”), due to its alleged potential impact on PJM’s pending Regional Transmission Expansion Plan (“RTEP”) cost allocation proceedings.  Along with its rejection of the amended Agreement, FERC initiated a Federal Power Act (“FPA”) section 206 proceeding into whether the Agreement, and PSEG’s withholding of consent for the conversion, unjustly and unreasonably restrict HTP’s ability to convert its Firm Transmission Withdrawal Rights.

On September 7, 2017, FERC accepted an Implementation Agreement between the California Independent System Operator Corporation (“CAISO”) and Powerex Corp. (“Powerex”), setting forth the terms under which CAISO will work toward Powerex’s participation in CAISO’s Energy Imbalance Market (“EIM”).

On September 7, 2017, FERC rejected, without prejudice, Midcontinent Independent System Operator, Inc.’s (“MISO”) proposed tariff revisions regarding its generator interconnection process.  FERC found that MISO did not provide sufficient support in its filing to demonstrate that the reductions for its study procedures timeline are just and reasonable.

On September 1, 2017, FERC rejected without prejudice the California Independent System Operator Corporation’s (“CAISO”) April 18, 2017 proposal to revise the CAISO Tariff to create a new class of participating transmission owner (“PTO”) called the “Certified Small PTO,” whose low-voltage, generator-interconnection-driven network upgrade costs would be allocated regionally, rather than locally.

On September 7, 2017, the Senate Committee on Energy and Natural Resources (“Committee”) held a hearing to consider the nominations of Kevin McIntyre and Richard Glick—President Trump’s final nominees for FERC Commissioner.  Mr. McIntyre and Mr. Glick, who were joined by two nominees also being considered for Department of Interior positions, fielded questions from Committee members but largely avoided opining on matters currently pending at FERC.  Knowing that FERC only just recently reestablished the required quorum to resume regular business (see August 11, 2017 edition of the WER), Committee Chairman Sen. Lisa Murkowski (R-AK) stated that she was eager to advance the FERC nominees to the full Senate for confirmation.

On August 10, 2017, Robert Powelson was officially sworn-in as a FERC Commissioner, restoring the three-Commissioner quorum necessary for FERC to resume regular business and vote on matters before it.  Commissioner Powelson joins Commissioner Neil Chatterjee, who was sworn in on August 8, 2017, and Commissioner Cheryl LaFleur.  On the same day as Commissioner Powelson’s swearing-in, President Trump named Commissioner Chatterjee to be Chairman until one of the remaining FERC Commissioner nominees, Kevin McIntyre, is confirmed by the Senate and sworn in.