On August 29, 2011, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) issued an order initiating review of a Notice of Penalty (“NOP”) issued by the North American Electric Reliability Corporation (“NERC”) on July 28, 2011, against Southwestern Power Administration (“SWPA”) for violating Reliability Standards Requirements for Critical Infrastructure Protection.  SWPA and the United States Department of Energy (“DOE”) filed an application for review with FERC arguing that NERC lacks the statutory authority to assess monetary penalties against a federal agency, and thus the NOP against SWPA must be dismissed.

On Thursday July 21, 2011, the Federal Energy Regulatory Commission (“FERC” or the “Commission”), the FERC voted 5-0 to issue a final rule on Transmission Planning and Cost Allocation by Transmission Owning and Operating Public Utilities, Order No. 1000 (“Order No. 1000”).  Commissioner Moeller issued a partial dissent to the Final Rule.  A more detailed summary of Order No. 1000 is available here

On July 19, 2011, FERC issued an order on Smart Grid Interoperability Standards, and found insufficient consensus to institute a rulemaking proceeding to adopt the five families of standards identified by the National Institute of Standards and Technology (“NIST”) as ready for review by the Commission.  Section 1305(d) of the Energy Independence and Security Act (“EISA”) of 2007 directed the Commission to institute a rulemaking proceeding to implement standards and protocols to ensure smart grid functionality and interoperability in transmission of electric power and in electricity markets.

On July 1, 2011, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) issued an order confirming the Midwest Independent Transmission System Operator, Inc.’s (“Midwest ISO”) interpretation of the Joint Operating Agreement (“JOA”) between it and the Southwest Power Pool (“SPP”).  FERC declared that the JOA allows for the sharing of available transmission capacity between the Midwest ISO, Entergy Arkansas, Inc. (“Entergy Arkansas”), and SPP in the event that Entergy Arkansas becomes a transmission-owning member of the Midwest ISO.

On June 16, 2011, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) allowed three utilities to terminate their mandatory purchase obligations that would have required new contracts with qualifying cogeneration and small power production facilities (“QF”) with over 20 MW of net capacity under the Public Utility Regulatory Policies Act of 1978 (“PURPA”).