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On January 16, 2014, FERC proposed to approve the North American Electric Reliability Corporation’s (“NERC”) Reliability Standard for Geomagnetic Disturbances (“GMDs”).  In its proposal, FERC stated that Reliability Standard EOP-010-1 (Geomagnetic Disturbance Operations) is designed to mitigate the effects of GMDs on the Bulk-Power System.   NERC developed the Reliability Standard in response to directives in FERC’s Order No. 779.

On January 15, 2014, FERC issued an Order Approving Stipulation and Consent Agreement (“Settlement”) between the Office of Enforcement (“Enforcement”), Erie Boulevard Hydropower, L.P. (“Erie”), and Brookfield Power US Assets Management, LLC (“BPAM”) related to Erie’s operation of the Varick Development of the Oswego River Project in light of the death of two fishermen nearby the project in 2010.  Enforcement concluded that Erie violated its license and Part 12 of FERC’s regulations, which governs hydropower public safety.

On January 2, 2014, FERC and the Commodity Futures Trading Commission (“CFTC”) executed a memorandum of understanding (“MOU”) pursuant to Section 720(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act to (1) facilitate information sharing in connection with market surveillance, (2) minimize duplicative information requests, and (3) address the treatment of proprietary and privileged information collected by the agencies.  The MOU comes after a letter from three U.S. Senators urged FERC and the CFTC to improve cooperation in order to prevent energy market manipulation.

On Tuesday, December 31, 2012, the Commission issued an order asserting jurisdiction over a “purity” ethane pipeline.  Williams Olefins Feedstock Pipelines, L.L.C. (“Williams”) had filed a Petition for Declaratory Order requesting that the Commission disclaim Interstate Commerce Act (“ICA”) jurisdiction over Williams’ proposed Williams Bayou Ethane Pipeline project (“Ethane Pipeline”).  The Commission denied the petition and clarified that “the Commission’s ICA jurisdiction applies where oil or petroleum products that can be used for energy purposes are moved in interstate commerce.”

On December 24, 2013, FERC and the Idaho Public Utilities Commission (“Idaho PUC”) entered into a Memorandum of Agreement (“MOA”) to resolve a complaint FERC filed against the Idaho PUC for alleged violations of the Public Utility Regulatory Policies Act of 1978 (“PURPA”).  The MOA states that FERC will file a Joint Stipulation for Voluntary Dismissal (“Joint Stipulation”) with the United States District Court for the District of Idaho (“Court”), and withdraw the complaint it filed against the Idaho PUC.

On December 19, 2013, FERC issued a final rule approving a revised Reliability Standard for Protection System Maintenance.  The revised standard PRC-005-2, which consolidates the four current Reliability Standards into a single standard, will incorporate new requirements for minimum maintenance activities and maximum time intervals between maintenance activities for individual components of the bulk electric system.  The North American Electric Reliability Corporation (“NERC”) revised the standard in response to directives issued in FERC’s Order No. 693.

On December 11, 2013, FERC Staff convened a workshop to discuss the mechanics for filing a zero rate reactive power rate schedule – a rate schedule under which there is no compensation for providing reactive power service.  The next step will be for Staff to issue a formal notice requesting written comments on this issue.

On December 3, 2013, the United States Court of Appeals for the District of Columbia Circuit (“D.C. Circuit”) vacated and remanded FERC’s 2011 order regarding certain aspects of the Joint Operating Agreement (“JOA”) between the Midcontinent Independent System Operator, Inc. (“MISO”) and the Southwest Power Pool (“SPP”).  The case involves the impact on SPP of integrating Entergy Arkansas into MISO.

On December 2, 2013, FERC filed two petitions in the United States District Court for the District of Massachusetts asking the court to affirm FERC’s assessment of civil penalties against Lincoln Paper and Tissue, LLC (“Lincoln”), Competitive Energy Services, LLC (“CES”), and Richard Silkman for allegedly manipulating the New England demand response market.