On October 7, 2011, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) announced that it will hold a Commissioner-led Technical Conference to address the reliability of the Bulk-Power System and emerging issues, including reliability concerns which may arise in complying with Environmental Protection Agency (“EPA”) regulations, along with tools to address these issues.
FERC News
New England Parties File Base ROE Complaint in ISO-NE
On September 30, 2011, Martha Coakley, Attorney General of the Commonwealth of Massachusetts, and various state officials and commissions from the other New England states (collectively, the “Complainants”) filed a Complaint against Bangor Hydro-Electric Company and the other ISO-New England transmission owners (collectively, “TOs”) and ISO New England Inc (“ISO-NE”).
FERC Issues Order Concerning Bilateral Sales in the Pacific Northwest
On October 3, 2011, FERC issued an order on remand from the U.S. Court of Appeals for the 9th Circuit (“9th Circuit”) concerning bilateral wholesale energy contracts that were entered into in the Pacific Northwest spot market between December 25, 2000 and June 20, 2001 (“October 3rd Order”).
FERC Sees Market Power Problems with Duke/Progress Merger, Parties Propose Mitigation Plan
On September 30, 2011, FERC conditionally approved the proposed merger between Duke Energy Corporation (“Duke”) and Progress Energy, Inc. (“Progress”) (together, “Applicants”). FERC “conditionally approved” the proposed merger, imposing conditions on the Applicants related to horizontal market power.
FERC Rejects MISO’s Request for Waiver to Accommodate Entergy Integration
On September 27, 2011, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) denied a tariff waiver request by the Midwest Independent Transmission System Operator, Inc. (“MISO”) concerning planning and cost allocation of network upgrades and a transition period for integrating Entergy Corporation and its operating companies (together “Entergy”).
Following House Hearing, Murkowski Requests More From FERC
On September 19, 2011, Senator Lisa Murkowski (R-AK) wrote a letter to Federal Regulatory Commission (“FERC” or the “Commission”) Chairman Jon Wellinghoff requesting that he clarify the Commission’s plans to address threats to the nation’s bulk power system as a result of the pending Environmental Protection Agency (“EPA”) regulations. Senator Murkowski’s September 19th letter builds upon the issues identified in her May 17, 2011 letter, and addresses the August 1, 2011 response of Chairman Wellinghoff.
House Panel Holds Hearing on Reliability Impact of EPA Regulations
On September 14, 2011, the House of Representatives Committee on Energy and Commerce Subcommittee on Energy and Power held a hearing to explore the impact of current and pending EPA utility regulations on electric system reliability. In a somewhat unusual event, all five members of the Federal Energy Regulatory Commission (“FERC” or the “Commission”) testified before the subcommittee about FERC’s role in studying the reliability impact of EPA regulations.
FERC Issues Report On One Southwest Outage in Time to Investigate Another
On September 9, 2011, FERC and the North American Electric Reliability Corporation (“NERC”) announced they would work together to examine the September 8th power outage that affected more than 1 million customers in Southern California, Arizona and Northern Baja Mexico. 4,300 megawatts (“MW”) of load were lost when a technician removed a voltage-regulating capacitor bank from service in a North Gila, Arizona substation, and a 500kV transmission line from Phoenix into Southern California went out of service.
FERC Proposes to Revise CIP Reliability Standards
On September 15, 2011, FERC issued a Notice of Proposed Rulemaking (“NOPR”) proposing to approve revisions to eight critical infrastructure protection (“CIP”) reliability standards, CIP-002-4 through CIP-009-4, which were developed and submitted to the Commission by the North American Electric Reliability Corporation (“NERC”).
FERC Approves Interpretations of Transmission Operations Reliability Standards
On September 15, 2011, FERC issued two final rules approving NERC’s interpretation of the Transmission Operations Reliability Standard, TOP-001-1, and the Transmission Planning Reliability Standard, TPL-002-0.