On January 14, 2025, the U.S. Court of Appeals for the D.C. Circuit (“D.C. Circuit”) held that FERC complied with the National Environmental Policy Act (“NEPA”) in approving the surrender of a hydroelectric project license. The court found that FERC had adequately considered the alternative of dam removal and determined that keeping the dams in place outweighed any potential benefits to recreation, fisheries, and other environmental concerns. The case, American Whitewater v. FERC, involved a challenge to FERC’s license surrender decision regarding the Somersworth Hydroelectric Project (“Project”) on the Salmon Falls River, which spans the border between New Hampshire and Maine.
FERC News
FERC Approves Contested Settlement Agreement and Rate Schedule for Provision of Reliability Must-Run Service
On January 16, 2025, FERC approved a contested settlement agreement and rate schedule governing the provision of reliability must-run (“RMR”) service from the Indian River Unit 4 generating facility (“Unit 4”) in PJM Interconnection, L.L.C. (“PJM”).
President Trump Names Christie as FERC Chairman and Signs Energy-Related Executive Orders
On January 20, 2025, Donald Trump was sworn in as the 47th President of the United States. On his first day in office, President Trump signed various executive orders effectuating administrative and policy changes across the federal government, including naming a new FERC Chairman and declaring a national energy emergency.…
FERC Issues Nearly $1B Market Manipulation Penalty Regarding Alleged Energy Efficiency Projects
On December 16, 2024, the Federal Energy Regulatory Commission (“FERC”) directed American Efficient, LLC, its subsidiaries, and corporate parents (collectively, “American Efficient”) to show cause why American Efficient should not be found to have violated anti-manipulation rules. The order alleges that American Efficient engaged in a manipulative scheme to extract millions of dollars in capacity payments from Midcontinent Independent System Operator, Inc. (“MISO”) and PJM Interconnection, L.L.C. (“PJM”) for energy efficiency projects that did not actually reduce energy use. FERC also requested American Efficient to show cause why they should not disgorge over $253 million in unjust profits and pay a civil penalty of $722 million.
FERC Denies CPower’s Complaint Requesting Revisions to PJM’s Tariff Governing Curtailment Service Providers
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 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.