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 News
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.
NERC Contests FERC Audit Report, Files for Rehearing
On May 15, 2012, the North American Electric Reliability Corporation (“NERC”) filed a request for rehearing of a May 4, 2012 letter order issued by the Director of FERC’s Office of Enforcement accepting a contested audit report critical of NERC (“May 4 Letter Order”). NERC noted that the FERC audit report contained “so many errors that it is difficult to understand the Office of Enforcement’s position on a wide range of matters.”
FERC to Investigate Formula Rate Protocols in MISO
On May 17, 2012, FERC instituted an investigation pursuant to section 206 of the Federal Power Act (“FPA”) regarding the protocols used by transmission owners in the Midwest Independent Transmission System Operator’s, Inc. (“MISO”) when calculating their annual formula transmission rates. The investigation centers around whether the formula rate protocols used by MISO and transmission owners in the region are sufficient to ensure just and reasonable rates.