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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.

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.

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”). 

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.