On November 7, 2014, the Commission denied Consumers Energy Company’s (“Consumers”) request for limited waiver of several MISO tariff provisions on the grounds that Consumers had failed to adequately demonstrate that the requested waiver would not cause undesirable consequences, such as harming third-parties. Consumers had filed its request for waiver in response to conflicting regulatory obligations under the MISO tariff and the EPA’s Mercury and Air Toxics Standards (“MATS”).
FERC News
FERC Approves Contested Western Energy Crisis Settlement, Orders Refunds in Separate Order
On November 10, 2014, FERC approved a contested settlement between several California utilities and the California Public Utilities Commission (collectively, the “California Parties”) against the California Department of Water Resources (“CDWR”), State Water Project for actions that arose during the western energy crisis from 2000 – 2001. Under the settlement, the CDWR State Water Project will pay $26.6 million to the California Parties for its actions during the western energy crisis.
FERC Enforcement Staff Accuses Maxim Power Corp. of Manipulation
On November 3, 2014, FERC’s Office of Enforcement (“Enforcement”) issued a Notice of Alleged Violations against Maxim Power Corporation (“Maxim”), suggesting that Maxim engaged in three schemes in ISO-New England (“ISO-NE”) that violated section 222(a) of the Federal Power Act and FERC’s Anti-Manipulation Rule, 18 C.F.R. § 1c.2.
FERC Announces Technical Conference on PJM’s Forfeiture Rule, UTC Transactions
On October 31, 2014, the Commission announced that it will hold a technical conference on January 7, 2015 concerning the justness and reasonableness of PJM Interconnection, L.L.C.’s
(“PJM”) existing tariff provisions related to the Financial Transmission Rights (“FTR”) forfeiture rule and uplift allocations as applied to Up-to Congestion (“UTC”) transactions.
D.C. Circuit Court of Appeals Delays Order Vacating Demand Response
On October 20, 2014, the U.S. Court of Appeals for the District of Columbia Circuit (“D.C. Circuit”) approved a request by FERC to delay finalizing its decision that vacated FERC Order No. 745 regarding demand response compensation for consumers. The D.C. Circuit approved the delay through December 16, 2014. Additionally, it stated that if it is notified of a petition for writ of certiorari filed during the delay, the court will withhold issuance of the mandate finalizing its decision to vacate, pending the Supreme Court’s final disposition.
FERC Dismisses Rehearing Requests of ISO-NE Forward Capacity Auction Results
On October 24, 2014, FERC dismissed requests for rehearing on the notice placing the ISO New England Inc.’s (“ISO-NE”) eighth annual Forward Capacity Auction (“FCA”) results into effect (“FCA Notice”). FERC ruled that because the results of the auction took effect by operation of law, rather than a FERC-issued order, there was no order to rehear.
FERC Denies Powerex’s Request for Relief from CAISO-Imposed Imbalance Energy Charges Associated with 2013 Wildfire
On October 22, 2014, the Commission denied a complaint filed by Powerex Corp. seeking relief from $937,927.33 in imbalance energy charges assessed against it by the California Independent System Operator Corporation (“CAISO”) for its failure to deliver prescheduled energy during a 2013 wildfire in California and Nevada.
FERC Grants IPL’s MATS-Related Waiver of MISO Resource Adequacy Requirements
On October 15, 2014, the Commission granted Indianapolis Power & Light Company’s (“IPL”) request for a limited, one-time waiver of certain provisions of the Midcontinent Independent System Operator’s (“MISO”) Open Access Transmission Tariff (“OATT”) in connection with IPL’s retirement of Eagle Valley coal units 3-6 (“Eagle Valley”) to comply with the EPA’s Mercury and Air Toxics Standards (“MATS”).
FERC Staff Releases Reports in Advance of RTO/ISO Pricing Workshop
On October 21, 2014, FERC Staff released two reports entitled Shortage Pricing in RTO and ISO Markets, and Energy Offer Mitigation in RTO and ISO Markets. The reports are intended to spur discussion at FERC’s October 28, 2014 workshop on scarcity and shortage pricing, offer mitigation, and offer caps in Regional Transmission Organizations (“RTOs”) and Independent System Operators (“ISOs”).
FERC Allows SPP to Consider Certain State and Local Laws and Regulations in Transmission Planning Process
On October 16, 2014, the Commission accepted in part Southwest Power Pool’s (“SPP”) proposed revisions to its Open Access Transmission Tariff (“OATT”) in compliance with Order No. 1000, and determined that SPP could consider certain state and local laws and regulations in the early stages of its competitive solicitation process for transmission planning.