On May 23, 2014, the U.S. Court of Appeals for the District of Columbia Circuit (“D.C. Circuit”) vacated FERC Order No. 745, “Demand Response Compensation in Organized Wholesale Energy Markets” in its entirety as an ultra vires agency action, explaining that FERC’s rule overstepped its authority, “encroaching on the states’ exclusive jurisdiction to regulate the retail market.” While the court based its decision on jurisdictional grounds, it said it would have vacated the order on substance also, concluding it was arbitrary and capricious to promulgate rules that over-compensate demand response providers. The panel was split two to one.
FERC News
FERC Announces Meeting with NRC Regarding Grid Issues
On May 19, 2014, FERC announced it will hold a joint meeting with the Nuclear Regulatory Commission (“NRC”) on May 28, 2014 to discuss important grid issues affecting both agencies. Commissioners from both FERC and NRC will attend the meeting, along with their respective staffs.
FERC Conditionally Approves PJM’s Non-Public Information Sharing Plan
On May 9, 2014, FERC conditionally approved PJM Interconnection, L.L.C.’s (“PJM”) proposed tariff revisions to enable sharing of operational data with natural gas pipelines and local distribution companies (“LDCs”). The tariff revisions are in accordance with FERC’s Order No. 787 regarding information sharing and allow PJM to share non-public information with pipelines for purposes of operational planning or reliability.
FERC Issues NOPR on Open Access Requirements for Interconnection Facilities
On Thursday, May 15, 2014, FERC issued a Notice of Proposed Rulemaking titled “Open Access and Priority Rights on Interconnection Customer’s Interconnection Facilities” (the “NOPR”). The NOPR proposes to amend certain of FERC’s regulations as they relate to public utilities that are subject to such regulations solely due to owning, controlling or operating generator tie lines, now referred to by FERC as Interconnection Customer’s Interconnection Facilities or “ICIFs.”
FERC Grants IMEA Limited Self-Supply Waiver from PJM Requirements
On May 2, 2014, FERC granted the Illinois Municipal Electric Agency (“IMEA”) a waiver from certain PJM Interconnection, L.L.C. (“PJM”) tariff requirements so it could utilize PJM’s Fixed Resource Requirement (“FRR”) Alternative for load delivery. As a result, IMEA can self-supply its Naperville, Illinois load with generation located outside of the Commonwealth Edison (“ComEd”) Locational Deliverability Area (“LDA”) starting on June 1, 2017.
Senate Energy and Natural Resources Committee Sets Confirmation Hearing for LaFleur and Bay
On Tuesday, May 20, 2014, the U.S. Senate Energy and Natural Resources Committee will consider the pending nominations of Norman Bay and Acting Chairman Cheryl LaFleur.
President Obama Nominates Commissioner LaFleur for Another Term
On Thursday May 1, 2014, President Barrack Obama announced his plan to nominate Acting Chairman Cheryl LaFleur to another term as a FERC Commissioner.
FERC Approves PJM Limitations on Capacity Imports
On April 22, 2014, FERC approved revisions to the PJM Interconnection, L.L.C. (“PJM”) tariff in order to identify limits on capacity from external resources that can be reliably imported into PJM. The revisions were designed to address risks from external resources that are subject to curtailment of firm transmission due to certain Transmission Load Relief (“TLR”) events.
FERC Announces Technical Conference on Reliability of the Bulk-Power System
On April 16, 2014, FERC announced it would hold a technical conference to discuss policy issues related to the reliable operation of the bulk-power system. The conference will take place on Tuesday, June 10, 2014, from 8:45 a.m. to 5:00 p.m., at FERC headquarters.
FERC to Hold Technical Conference on Version 5 Critical Infrastructure Protection Reliability Standards
On February 27, 2014, FERC announced it will hold a technical conference to explore Critical Infrastructure Protection (“CIP”) Issues identified in Order No. 791. The conference will be held at FERC on April 29, 2014 beginning at 10:00 a.m. The technical conference will be led by Commission staff and will include prepared remarks to be presented by invited panelists.