On January 4, 2012, FERC and the National Association of Regulatory Utility Commissioners (“NARUC”) announced they will host three forums on reliability issues facing the electric utility industry with the issuance of new Environmental Protection Agency (“EPA”) emissions requirements. (See December 5, 2011 edition of the WER) The three reliability forums will coincide with three annual NARUC meetings, and the forums stem from a recent NARUC resolution that called for collaboration with EPA and FERC to address reliability concerns.
FERC News
FERC Rejects Duke-Progress Mitigation Proposal in Merger Proceeding
On December 14, 2011, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) rejected a market power mitigation filing by Duke Energy Corporation (“Duke”) and Progress Energy Inc. (“Progress”) (together the “Applicants”) in connection with their proposed merger.
Troutman Sanders Holds Webinar on FERC’s Recent Use of 211A Authority
On December 15, 2011, Troutman Sanders held a webinar discussion of FERC’s recent order directing Bonneville Power Administration (“BPA”) to file an Open Access Transmission Tariff pursuant to Federal Power Act Section 211A authority. (See December 12, 2011 edition of the WER)
FERC Approves Agreement Allowing Nevada Coop to Eventually Join CAISO
On December 14, 2011, FERC approved a transition agreement between the California Independent System Operator Corporation (“CAISO”) and Valley Electric Association, Inc. (“Valley Electric”), a Nevada electric cooperative.
Commissioner Marc Spitzer Leaves FERC
On December 12, 2011, FERC Commissioner Marc Spitzer announced that effective December 14, 2011, he would be leaving the Commission. At the December 15, 2011 FERC Monthly Meeting, Chairman Jon Wellinghoff, and the other commissioners thanked Commissioner Spitzer for his service.
FERC Directs Bonneville Power Administration to File an OATT Pursuant to New Statutory Authority
On December 7, 2011, the Federal Energy Regulatory Commission (“FERC or the “Commission”) issued an order directing the Bonneville Power Administration (“Bonneville”) to file revisions to its Open Access Transmission Tariff (“OATT”) to provide for transmission service on terms and conditions that are comparable to those under which Bonneville provides service to itself and that are not unduly discriminatory or preferential.
The Commission Levies $6,364,029 Civil Penalty against Atmos and Trans Louisiana Gas Pipeline
On December 9, 2011, FERC issued a stipulation and consent agreement between the Commission’s Office of Enforcement (“Enforcement”) and Atmos Energy Corporation (“Atmos”), the parent company of Atmos Energy Marketing, Inc. (“AEM”) and Trans Louisiana Gas Pipeline, Inc. (“Trans La”) assessing a civil penalty of $6,364,029 and ordering the disgorgement of $5,635,971, plus interest for the unjust profits from shipper-must-have-title violations.
FERC Technical Conference Addresses Reliability Issues and EPA Regulations
On November 29 and 30, 2011, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) held a Commissioner-led Technical Conference on electric reliability issues. Of note, the Commission devoted an entire day of the conference to the impact of the EPA’s regulations on electric reliability.
FERC Releases 2011 Report on Enforcement
On November 17, 2011, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) released the 2011 Report on Enforcement (the “Report”). The Report is prepared annually by staff of the Office of Enforcement (“OE”).
FERC Holds Technical Conference on the Penalty Guidelines
On October 27, 2011, the Commission held a Technical Conference on last September’s Revised Policy Statement on Penalty Guidelines. Overall, various members from the Energy industry provided feedback to the Commission, and the industry representatives repeatedly asked for: (1) increased transparency, (2) more communication, (3) more detail on what exactly comprises an effective compliance program, and (4) what determines a penalty amount.