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On March 8, 2016, the Federal Energy Regulatory Commission (“FERC”) accepted Southwest Power Pool, Inc.’s (“SPP”) proposed revisions to its Open Access Transmission Tariff (“Tariff”) to identify the border between the United States and Canada as the point-of-sale for market transactions that involve a Canadian transmission service provider. Subject to a minor condition, SPP’s Tariff revisions are effective immediately.

On March 8, 2016, the U.S. Court of Appeals for the D.C. Circuit (“D.C. Circuit”) granted Xcel Energy Services Inc.’s (“Xcel”) petition for review of FERC orders related to tariff revisions filed by Southwest Power Pool, Inc. (“SPP”) to implement a formula rate for transmission service on behalf of Tri-County Electric Cooperative, Inc. (“Tri-County”), a non-jurisdictional transmission owner. 

On March 7, 2016, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) conditionally approved amendments to the California Independent System Operator Corporation’s (“CAISO”) Open Access Transmission Tariff (“OATT”) that are designed to enhance CAISO’s generator interconnection process. The proposed amendments represent the second and final set of OATT revisions resulting from CAISO’s 2015 interconnection enhancement stakeholder initiative.

On February 29, 2016, FERC issued a notice of a technical conference to be held at FERC’s headquarters on June 27, 28, and 29, 2016 to discuss opportunities for increasing real-time and day-ahead market efficiency through improved software. The notice indicates a detailed agenda will be posted on FERC’s website after April 22, 2016.

On February 25, 2016, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) extended the implementation deadline for the critical infrastructure protection (“CIP”) version 5 Reliability Standards, from April 1, 2016 to July 1, 2016, granting a February 4, 2016 motion filed by several industry trade associations requesting the extension.

On March 1, 2016, the Federal Energy Regulatory Commission (“FERC”) accepted, subject to condition, the New York Independent System Operator, Inc’s. (“NYISO”) proposed revisions to the scarcity pricing mechanism NYISO uses in its real-time market, set forth in its Market Administration and Control Area Services Tariff (“Services Tariff”) and Open Access Transmission Tariff (“OATT”). In the order, FERC ordered NYISO to submit a compliance filing to clarify whether its proposed revisions apply to scarcity events, shortage events, or both.

On February 18, 2016, the North American Electric Reliability Corporation (“NERC”) filed with the Commission its first annual report (the “Report”) on NERC’s Compliance Monitoring and Enforcement Program (“CMEP”). NERC submitted the Report in compliance with a directive from the Commission’s February 19, 2015 Order approving NERC’s implementation of the Reliability Assurance Initiative (“RAI”) (see February 24, 2015 edition of the WER).

On February 25, 2016, FERC granted Rockies Express Pipeline LLC’s (“Rockies Express”) request for a certificate to construct and operate natural gas compression and ancillary facilities in Ohio and Indiana (“East-to-West Expansion Project”) pursuant to section 7(c) of the Natural Gas Act (“NGA”). Rockies Express stated that the proposed East-to-West Expansion Project will enable it to provide an additional 800,000 dekatherms per day (“Dth/d”) of east-to-west transportation service within Zone 3 of the Rockies Express system.

On February 18, 2016, FERC issued an order conditionally accepting tariff revisions from the New York Independent System Operator, Inc. (“NYISO”). According to the NYISO, the proposed tariff revisions would improve coordination between the electric and natural gas system by giving NYISO authority to prohibit generators from including unauthorized natural gas costs and penalties in reference levels and to reject after the fact requests to recover costs associated with unauthorized natural gas use.

On February 18, 2016, on its own motion, FERC instituted an investigation under section 206 of the Federal Power Act to determine whether the must-offer obligation imposed in the Western Electricity Coordinating Council (“WECC”) footprint during the 2000-2001 California energy crisis is still necessary due to changes in circumstances. Based on its preliminary review, FERC does not believe the must-offer obligation is still just and reasonable and, thus, proposes to terminate the obligation.