On June 15, 2012, FERC and the Nuclear Regulatory Commission (“NRC”) held a joint meeting on grid reliability at FERC. The meeting was in furtherance of a Memorandum of Agreement (“MOA”) (see September 11, 2009 edition of the WER) between the two agencies to facilitate interactions about matters of mutual interest relating to the bulk power system.
FERC News
Tony Clark Sworn in as FERC Commissioner
On June 15, 2012, Tony Clark was sworn in as a Commissioner of FERC. Commissioner Clark’s nomination was approved by the U.S. Senate Committee on Energy and Natural Resources on April 26, 2012 (see April 30, 2012 edition of the WER), and confirmed by the Senate on May 24, 2012 (see June 4, 2012 edition of the WER).
Commission Approves Duke and Progress Merger Subject to Certain Conditions
On June 9, 2012, the Commission accepted the revised compliance filing by Duke Energy Corp. (“Duke”) and Progress Energy, Inc. (“Progress”) (collectively the “Applicants”), paving the way for full Commission approval of their merger.
FERC Provides Guidance to PJM Limited Liability and Worker Safety Issues
On June 7, 2012, FERC provided guidance to PJM Interconnection, L.L.C. (“PJM”) on whether there was a responsibility to oversee worker safety under its Open Access Transmission Tariff (“OATT”) and whether the OATT’s limited liability clause precludes a negligence tort claim by an injured utility worker. The Commission determined that PJM is not responsible for maintaining workers’ safety during maintenance procedures.
FERC Adopts a Paper Hearing for NERC Audit Report Dispute
On June 4, 2012, FERC issued an order adopting a paper hearing process to address audit recommendations and factual findings in an ongoing dispute between FERC Staff and the North American Electric Reliability Corporation (“NERC”) over a financial performance audit (see June 4, 2012 edition of the WER).
FERC Staff Answers NERC Accusations Regarding Audit Report
On May 23, 2012, Staff from FERC’s Office of Enforcement submitted a response to supplement the record in its financial performance audit of the North American Electric Reliability Corporation (“NERC”) and refuted claims by NERC that Staff “refused to meet with NERC” and “failed to act in good faith.” FERC Staff also contested NERC’s claims that Enforcement did not provide an opportunity to review revised recommendations.
Vista Energy Marketing Cited for “Reckless Violation” of FERC Order
On May 24, 2012, FERC issued an order approving a stipulation and consent agreement between FERC’s Office of Enforcement, Vista Energy Marketing, L.P. (“Vista”) and Michael P. Whalen, Jr. The order provides for a civil penalty of $350,000 for what the Commission called a “reckless violation” of a prior Commission order.
Senate Confirms Norris and Clark
On May 24, 2012, the United States Senate confirmed the nominations of Commissioner John Norris and Tony Clark to be members of FERC.
FERC Approves Anchor Tenant Proposal, Denies Preference for Renewables
On May 22, 2012, FERC issued an order allowing Rock Island Clean Line LLC (“Rock Island”), a subsidiary of Clean Line Energy LLC, to allocate up to 75 percent of its planned capacity on a proposed transmission line to anchor customers before conducting an open season for the remaining capacity. However, in the same order, the Commission denied Rock Island’s request to favor renewable energy projects for the remaining quarter of transmission capacity on the proposed line.
FERC Clarifies and Denies Rehearing of Order No. 1000; Issues Order No. 1000-A
On May 17, 2012, with a 4-0 vote, FERC denied rehearing on its landmark transmission planning and cost allocation rule, Order No. 1000, and issued Order No. 1000-A on Rehearing and Clarification. A detailed summary of Order No. 1000-A is available here.