On February 29, 2012, PJM Interconnection LLC (“PJM”), in an attempt to reduce bottlenecks in its interconnection queue and provide greater certainty and transparency, filed proposed revisions to its Open Access Transmission Tariff.  These revisions are a result of PJM’s stakeholder process and are designed to alter the process for how generation projects are analyzed before being allowed to connect to the transmission grid.

On February 27, 2012, FERC issued an order in Docket Nos. ER12-715 and EL-56 (not consolidated) allowing revisions in the Midwest Independent Transmission System Operator, Inc.’s (“MISO”) tariff, subject to clarification.  The proposed revisions would allow MISO to charge a Withdrawing Transmission Owner, defined as an owner of transmission facilities that withdraws its transmission facilities from the operational control of MISO after July 16, 2010, a monthly Multi-Value Project (“MVP”) usage rate that includes a share of the costs of all MVP projects that the MISO Board of Directors approved prior to the effective date of the transmission owner’s withdrawal.

On February 22, 2012, Duke Energy Carolinas, LLC (“DEC”) and Progress Energy Carolinas, Inc. (“PEC”) filed with the North Carolina Utilities Commission a description of the revised merger-related market power mitigation plan it aims to submit to FERC next month (the “Revised Mitigation Plan”). 

On February 17, 2012, FERC issued notice of a technical conference on Reactive Power Capability.  The technical conference is being held to consider potential issues regarding the need for reactive power capability among newly interconnecting asynchronous generators and  the need and efficacy of continuing the process established for wind resources under Order No. 661-A. 

On February 23, 2012, FERC staff issued a request for comments on proposed metrics to measure performance in regions outside of Regional Transmission Organizations (“RTO”) and Independent Systems Operators (“ISO”).  FERC, working in conjunction with the Edison Electric Institute and its members, has started the process of developing these metrics that will measure performance in regions outside of RTOs and ISOs.  These metrics are based upon metrics that were previously developed to measure performance within the regions of RTOs and ISOs.

On February 13, 2012, FERC asked Congress to authorize the agency’s $304.6 million budget request for 2013.  This is the same amount FERC requested for fiscal year 2012.  FERC’s budget request states it will focus on two overarching goals for the year: (1) ensuring just and reasonable rates, terms and conditions; and (2) facilitating the deployment of new infrastructure. 

On February 16, 2012, FERC issued a notice of proposed rulemaking (“NOPR”) proposing to revise its regulations governing interstate natural gas pipeline business practices and standards.  FERC’s proposed rule would adopt and incorporate by reference, (with certain exceptions) certain standards adopted by the Wholesale Gas Quadrant of the North American Energy Standards Board (“NAESB”).

On February 16, 2012, the Commission issued an order retaining its existing policies concerning the analysis of horizontal market power in connection with transactions under section 203 of the Federal Power Act.  The Commission declined to revise its policies to incorporate the Department of Justice and Federal Trade Commission’s August 19, 2010 Horizontal Merger Guidelines (the “2010 DOJ/FTC Guidelines”), as previously contemplated by its March 17, 2011 Notice of Inquiry (“NOI”).