On April 29, 2013, FERC accepted PJM Interconnection, L.L.C.’s (“PJM”) proposed Open Access Transmission Tariff revisions aimed at incentivizing the participation of an efficient mix of demand resource (“DR”) products in the PJM capacity auction.  PJM’s tariff revisions set up an additional test to establish the Limited DR Reliability Target for certain types of DR capacity products.

On April 29, 2013, three U.S. Senators sent a letter to FERC and the Commodity Futures Trading Commission (“CFTC”) urging greater cooperation between the two agencies.  Senators Dianne Feinstein (D-CA), Lisa Murkowski (R-AK), and Ron Wyden (D-OR) penned the open-letter requesting that FERC and the CFTC “execute more robust Memorandums of Understandings” (“MOUs”) to prevent market manipulation.

On April 23, 2013, FERC approved a Stipulation and Consent Agreement (“Settlement”) with Seneca Falls Power Corporation (“Seneca Falls”) for violations of its hydropower license.  In the Settlement, Seneca Falls agreed to pay a $150,000 civil penalty and invest $300,000 in project enhancements.

On April 19, 2013, FERC granted a complaint by Comverge, Inc., Viridity Energy, and Energy Curtailment Specialists (the “Demand Response Coalition”) alleging that PJM Interconnection L.L.C.’s (“PJM”) revisions to its Manual 18, PJM Capacity Market are unenforceable and violate section 205 of the Federal Power Act (“FPA”).

On April 23, 2013, FERC’s Director of Office of Energy Projects, Jeff C. Wright, testified before the Senate Committee on Energy and Natural Resources concerning draft legislation aimed at increasing hydropower production in the United States.  The draft legislation at issue included S. 545, “Hydropower Improvement Act of 2013” and H.R. 267, “Hydropower Regulatory Efficiency Act of 2013.”  In his testimony, Wright discussed FERC’s authority under the Federal Power Act (“FPA”) to issue licenses or exemptions for hydropower projects under its jurisdiction.  Wright further detailed FERC’s recent efforts to support small and “innovative” projects, including marine and hydrokinetic projects, and pumped storage projects.

On April 18, 2013, FERC issued a Notice of Proposed Rulemaking (“NOPR”) to approve the North American Electric Reliability Corporation, Inc.’s (“NERC”) Version 5 Critical Infrastructure Protection (“CIP”) Reliability Standards.  The proposed CIP standards include 10 new or modified standards that implement various cyber security measures and will expand the type of facilities that must adhere to the CIP requirements.  If approved, the new CIP standards will replace the Version 4 standards, which are scheduled to take effect in April 2014.

On April 18, 2013, the Commission dismissed a self-recertification filed by an Exempt Wholesale Generator (“EWG”), Prairie Breeze Wind Energy LLC (“Prairie Breeze”).  The Commission provided additional guidance regarding self-recertification for EWGs, and specifically what constitutes a “material change in facts” prompting the need for self- recertification.

On April 2, 2013, FERC conditionally accepted the Midwest Independent Transmission System Operator, Inc.’s (“MISO”) proposed Open Access Transmission, Energy and Operating Reserve Markets Tariff (“Tariff”) revisions to address resource adequacy requirements for New Load-Serving Entities (“LSEs”).  The proposed Tariff revisions effectively apply the existing MISO Module E-1 annual resource adequacy requirements to New LSEs, taking into account the circumstances of these new entities.