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.
FERC News
Senate Committee on Energy and Natural Resources to Consider Nomination of Tony Clark and Re-Nomination of Commissioner John Norris to FERC
On Tuesday March 20, 2012*, the Senate Committee on Energy and Natural Resources will consider the nomination of Tony Clark and re-nomination of Commissioner John Norris to FERC.
FERC Approves MISO’s Approach to MVP Cost Allocation For Departing Members
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.
Duke and Progress Preview Revised Mitigation Plan for North Carolina Regulators, Look to Build Transmission and Sell Power
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”).
FERC Releases Notice of Technical Conference on Reactive Power Capability
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.
FERC Creates New Division on Analytics and Surveillance
On February 16, 2012, FERC Chairman, Jon Wellinghoff, announced at the onset of the monthly meeting that the Commission is establishing a new Division of Analytics and Surveillance under the Office of Enforcement (“Enforcement”).
FERC Staff Requests Comments on Performance Metrics for Regions Outside of RTOs and ISOs
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.
DOE and FERC Release 2013 Proposed Budgets
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.
FERC Issues Notice of Proposed Rulemaking on Interstate Natural Gas Pipeline Business Standards and Practices
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”).
FERC Reaffirms Policies Concerning Horizontal Market Power Analysis
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”).