On May 1, 2012, FERC and NERC released a joint report detailing the events that led to the 2011 blackout in the Southwestern United States that left 2.7 million customers without power. The report called for transmission operators and balancing authorities to improve coordination and planning.
FERC News
FERC Audit Report Shows Continuing Tension with NERC
On May 4, 2012, the FERC Office of Enforcement released a delegated letter order accepting the results and recommendations of an audit of the North American Electric Reliability Corporation (“NERC”). The audit report, critical of NERC in many ways, prompted NERC to issue a strongly-worded statement criticizing FERC Staff for releasing the report while negotiations regarding some of the audit results and recommendations were ongoing.
FERC Releases Guidance on RECs for Qualifying Facilities
On April 24, 2012, FERC declined a request by the owners of two Qualifying Facilities to initiate an enforcement proceeding against the Public Service Commission of West Virginia (“West Virginia Commission”) under the Public Utility Regulatory Policies Act of 1978 (“PURPA”).
Commission Approves PJM’s Proposal to Include Public Policy Considerations in its Transmission Planning Process
On April 30, 2012, the Federal Energy Regulatory Commission approved revisions to the PJM Interconnection, L.L.C.’s (“PJM”) transmission planning process in Docket No. ER12-1179-000. PJM submitted the proposed revisions in order to expand its planning analyses beyond reliability and market efficiency considerations, developing a more extensive analysis that includes renewable resource integration, demand response programs, environmental initiatives and “at risk” generation.
FERC Approves MISO Tariff Revisions to Integrate Entergy
On April 19, 2012, the Federal Energy Regulatory Commission (the “Commission” or “FERC”) approved proposed tariff revisions of Midwest Independent Transmission System Operator, Inc. and the Transmission Owners of the Midwest Independent System Operating, Inc. (collectively “MISO”) in its effort to facilitate the integration of Entergy Corporation and its operating companies (“Entergy”) into MISO. The order clarifies how the costs of certain transmission projects will be allocated during the transition of Entergy into MISO, and sets the stage for future cost sharing between the current MISO and Entergy regions.
FERC Determines Renewable Energy Certificates are Jurisdictional When Bundled with Energy Sales
On April 20, 2012, FERC clarified through a WSPP, Inc. (“WSPP”) order that the Commission does not have jurisdiction over the trading of unbundled renewable energy certificates (“REC”) – i.e. those REC contracts that do not have an energy sales component. However, the Commission did assert jurisdiction over bundled REC transactions under sections 201, 205, and 206 of the Federal Power Act.
Wellinghoff Discusses FERC Accomplishments
On April 26, 2012, FERC Chairman Jon Wellinghoff met with reporters to discuss the Commission’s accomplishments over the last year. Wellinghoff focused on the steps FERC has taken in the past year to fulfill its mission of “ensuring consumers have reliable, efficient and sustainable energy.” In addition, FERC’s Office of Energy Projects released a list of Energy Infrastructure Issuances from April 1, 2011 to March 31, 2012, which noted that FERC licensed 50 hydropower projects, certificated 22 natural gas pipeline projects and 13 natural gas storage projects.
FERC Approves “Bright-Line” Criteria for Identifying Critical Assets
On April 19, 2012, FERC approved the North American Electric Reliability Corporation’s (“NERC”) revised standards for identifying assets subject to NERC’s critical infrastructure program (“CIP”). The revised standards replace NERC’s former risk-based approach with 17 uniform “bright-line” criteria.
Senate Energy Committee Approves FERC Nominees
On April 26, 2012, the Senate Committee on Energy and Natural Resources approved the nominations of Tony Clark (R) and John Norris (D) to be members of FERC. The nominees are now eligible for consideration by the full Senate.
FERC Enforcement Director Testifies before Senate Committee on Weather Outages
On April 26, 2012, the Senate Committee on Energy and Natural Resources held a hearing on Weather-Related Electrical Outages. The Director of FERC’s Office of Enforcement, Norman Bay, testified before the Committee regarding FERC’s analysis of the effects of the October 29-30, 2011 snowstorm in the Northeastern United States.