On September 19, 2024, the Federal Energy Regulatory Commission (“FERC”) denied Enerwise Global Technologies, LLC’s (“CPower”) complaint against PJM Interconnection, LLC (“PJM”) alleging that PJM’s Open Access Transmission Tariff (“Tariff”) was unjust, unreasonable, and unduly discriminatory because it prevents Curtailment Service Providers (“CSP”) from using approved statistical sampling rules to
FERC News
FERC Rejects Basin’s Special Rate for Crypto and Large Load Customers, Sparking Further Interest in “Large Load” Policy Discussions at FERC
On August 20, 2024, the Federal Energy Regulatory Commission (“FERC”) issued an order rejecting, without prejudice, a contested proposal from Basin Electric Power Cooperative (“Basin”) to establish special wholesale power sales rate schedules for cryptocurrency (“crypto”) operations and other new large loads. While FERC expressed sympathy for Basin’s concerns regarding its ability to serve expected load growth reliably and economically, FERC found that Basin failed to justify its proposal to treat crypto currency mining loads differently from other large loads and therefore rejected the differential rate proposal.
D.C. Circuit Finds That Interconnection Customers are Responsible for Network Upgrade Costs
On July 19, 2024, the United States Court of Appeals for the District of Columbia Circuit (“D.C. Circuit”) issued an Order denying Tenaska Clear Creek Wind, LLC’s (“Clear Creek”) challenges to FERC’s orders allowing the allocation of costs for network upgrades. Southwest Power Pool, Inc. (“SPP”) assigned costs of more than $100 million to Clear Creek to pay for upgrades required on SPP’s system to accommodate the interconnection of Clear Creek’s wind turbine-powered electrical generation project (the “Project”).
D.C. Circuit Finds FERC Failed to Adequately Consider GHG Emissions of LNG Project
On July 16, 2024, the United States Court of Appeals for the District of Columbia Circuit (“D.C. Circuit”) found that FERC failed to adequately consider a liquefied natural gas (“LNG”) project’s greenhouse gas (“GHG”) emissions and failed to properly assess the cumulative effects of the LNG project’s nitrogen dioxide (“NO2”) emissions. While the D.C. Circuit remanded to FERC for further consideration, it did so without vacatur.
Court Vacates FERC “Soft” Cap Refund Order Issued After 2020 California Heat Wave
On July 9, 2024, the United States Court of Appeals for the District of Columbia Circuit (“D.C. Circuit”) vacated orders issued by the FERC that required six wholesale power sellers (the “Sellers”) to issue refunds to customers for power sales made above FERC’s “soft” price cap during the 2020 heatwave in California. The court held that FERC “should have conducted [a] Mobile-Sierra analysis prior to ordering refunds,” and therefore remanded the orders so that FERC could “change its refund analysis for above-cap sales going forward.”
David Rosner and Lindsay See Sworn in as FERC Commissioners; Allison Clements’ Term Expires
David Rosner and Lindsay See have been sworn in as FERC’s newest Commissioners on June 13 and 28, 2024, respectively. The FERC Open Meeting on June 27 marked Commissioner Rosner’s first Open Meeting and Commissioner Allison Clements’ last Open Meeting before her term expired on June 30, 2024. The U.S. Senate previously confirmed now-current Commissioners Rosner and See on June 13, 2024, along with Judy Chang. It is likely that Judy Chang will be sworn in as Commissioner in the coming days. Judy Chang’s swearing in will bring the agency to its full complement of five commissioners.
FERC Issues Notice of Proposed Rulemaking to Conform to EPA’s Recent CWA § 401 Rule
At its May 23, 2024 open meeting, the Federal Energy Regulatory Commission (“FERC”) issued a Notice of Proposed Rulemaking (“NOPR”) proposing to establish a one-year “reasonable period of time” for certifying authorities to act on requests for water quality certification under section 401 of the Clean Water Act (“CWA”). The proposed rule also clarifies that all FERC authorizations “that have the potential to discharge into waters of the United States,” including exemptions from licensing, require either a section 401 water quality certification or waiver thereof.
FERC Accepts CAISO’s Request to Raise Soft Cap Offer
On April 25, 2024, FERC approved the California Independent System Operator Corporation’s (“CAISO”) request to increase its capacity procurement mechanism (“CPM”) soft cap offer from $6.31/kW-month to $7.32, which will become effective in June 2024.
Divided FERC Announces Much-Anticipated Transmission Rules
On May 13, 2024, the Commission announced two major transmission reform final rules: Building for the Future Through Electric Regional Transmission Planning and Cost Allocation (“Order No. 1920”) and Applications for Permits to Site Interstate Electric Transmission Facilities (“Order No. 1977”). Order No. 1920, which adopts specific requirements for how transmission providers must conduct long-term planning and allocate costs for regional transmission facilities, was the subject of significant debate at today’s meeting and only mustered two votes in support from the three sitting commissioners. The Commission unanimously approved Order No. 1977, which updates the process FERC will use in the limited circumstances in which it must exercise its authority over siting electric transmission lines, as directed by Congress in the Infrastructure Investment and Jobs Act of 2021 (“IIJA”).
Senate Committee Considers Three New FERC Nominees
On March 21, 2024, the Senate Committee on Energy and Natural Resources held a hearing to consider President Biden’s three recent nominations to the Federal Energy Regulatory Commission (“FERC” or “Commission”): (1) David Rosner for the term expiring June 30, 2027; (2)Lindsay S. See for the term expiring June 30, 2028; and (3)Judy W. Chang for the term expiring June 30, 2029.Rosner is an energy industry analyst at FERC and led efforts related to the Commission’s rulemaking on energy storage resources, electric transmission, offshore wind integration, fuel security, and natural gas-electric coordination. See is the Solicitor General of West Virginia, and manages West Virginia’s civil and criminal appellate dockets, with a focus on regulatory and administrative law matters. Chang is an energy economics and policy analyst and was the former Undersecretary of Energy and Climate Solutions for Massachusetts, where she set policies for the Commonwealth’s energy sector.