On October 20, 2011, FERC approved a new two-part compensation method for frequency regulation in wholesale power markets that would provide higher compensation for faster ramping technologies. The Commission found that the old form of regulation service payment from regional transmission organizations (“RTOs”) and independent system operators (“ISOs”) were unjust, unreasonable, and unduly discriminatory because it failed to acknowledge the speed of different ramping resources, and in some cases this led to inefficient economic dispatch.
FERC News
FERC Reaffirms MISO and SPP Transmission Cost Allocation Methods
By Troutman Pepper Locke on
Posted in Uncategorized
On October 20, 2011, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) denied the bulk of the rehearing requests pertaining to the Midwest Independent Transmission System Operator, Inc.’s (“MISO”) cost allocation methodology for new transmission multi value projects (“MVP”), and the Commission denied all rehearing requests on the Southwest Power Pool, Inc.’s (“SPP”) Highway/Byway cost allocation plan.
9th Circuit Denies Petitions for Review of Order No. 697 and 697-A on Market-Based Rate Authority
By Troutman Pepper Locke on
Posted in Uncategorized
On October 13, 2011, the United States Court of Appeals for the Ninth Circuit (“9th Circuit” or “Court”) issued a decision (Montana Consumer Counsel v. FERC) denying petitions for review of the FERC Order No. 697 and Order No. 697-A, codifying market-based rate policy.
Energy and Power Subcommittee Holds Hearing on Electric Transmission Issues
By Troutman Pepper Locke on
Posted in Uncategorized
On October 13, 2011, the Energy and Power Subcommittee of the House Energy and Commerce Committee held a two-part hearing to discuss electric transmission issues, including siting, planning, and cost allocation.
FERC Announces Conference to Address Reliability Impact of EPA Rules
By Troutman Pepper Locke on
Posted in Uncategorized
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.
New England Parties File Base ROE Complaint in ISO-NE
By Troutman Pepper Locke on
Posted in Uncategorized
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
By Troutman Pepper Locke on
Posted in Uncategorized
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
By Troutman Pepper Locke on
Posted in Uncategorized
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
By Troutman Pepper Locke on
Posted in Uncategorized
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
By Troutman Pepper Locke on
Posted in Uncategorized
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.