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On October 23, 2013, the Inspector General of the Department of Energy (“DOE IG”) released an audit report evaluating FERC’s Unclassified Cyber Security Program.  In the audit, the DOE IG concluded that despite FERC’s progress in improving its internal processes related to cyber security, FERC needs to take additional actions to improve its cyber security systems.

On October 17, 2013, FERC issued an order denying PPL Electric Utilities Corporation’s (“PPL Electric”) request to be relieved of its mandatory obligation under the Public Utility Regulatory Policies Act of 1978 (“PURPA”) to purchase the output of Sounderton LLC’s (“Sounderton”) cogeneration facility, which is a small Qualifying Facility (“QF”) with an output of less than 20 MW. 

On October 17, 2013, FERC issued an order clarifying its policy regarding the filing of reactive power rate schedules where there is no rate charged (“Clarification Order”).  Specifically, FERC clarified that, going forward, all entities must file reactive power rate schedules containing the rates, terms, and conditions for reactive power service, even if there is no charge for such service.  Furthermore, FERC directed FERC Staff to conduct a workshop to explore the mechanics of such filings.

On October 9, 2013, FERC filed a petition (“Petition”) in the United States District Court for the Eastern District of California for an order affirming FERC’s assessment of civil penalties totaling $435 million against Barclays Bank PLC (“Barclays”) and four of its traders for manipulating electricity markets in and around California, along with disgorgement of profits in the amount of $34.9 million.

On October 1, 2013, FERC accepted and suspended PJM Interconnection, LLC’s (“PJM”) demand resource offer revisions to its Open Access Transmission Tariff (“OATT”) and Reliability Assurance Agreement, and set the matter for a technical conference.  FERC stated that the technical conference will explore issues raised in the proceeding that warrant further discussion.

On September 19, 2013, FERC issued a final rule approving the North American Electric Reliability Corporation’s (“NERC”) modifications to four requirements for electricity reliability.  The modifications were proposed to close perceived reliability gaps associated with generator interconnection facilities without the need for most generator owners or operators to register as transmission owners or operators.

On September 20, 2013, Clearwater Paper Corporation (“Clearwater”) filed with FERC a petition for enforcement pursuant to section 210(H) of the Public Utility Regulatory Policies Act of 1978 (“PURPA”) against the Idaho Public Utilities Commission (“Idaho PUC”).  The petition alleges that the Idaho PUC impermissibly moved to allocate, without compensation to a Qualifying Facility (“QF”), one half of all Renewable Energy Credits (“RECs”) created through that facility’s PURPA QF contracts within Idaho to the utility purchasing the QF’s power under a PURPA contract.

On September 19, 2013, FERC issued Order No. 764-B, further clarifying its Integration of Variable Energy Resources (“VER”) rule originally established in Order No. 764.  Powerex Corporation (“Powerex”) and Iberdrola Renewables, LLC (“Iberdrola Renewables”) had sought clarification, or in the alternative rehearing, of issues related to e-Tagging and the Bonneville Power Administration’s (“Bonneville”) practice of curtailments pursuant to its Dispatcher Standing Order (“DSO”) 216 protocol.