On June 20, 2011, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) denied the joint request of Sempra Generation (“Sempra”) to make affiliate sales to San Diego Gas & Electric Company (“SDG&E”) pursuant to a competitive solicitation due to concerns over potential for affiliate abuse. 

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”).

On June 16, 2011, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) released a Notice of Inquiry (“NOI”) asking for comments on how to develop competition in ancillary markets and how to expand the use of electric storage technology.

On June 16, 2011, FERC denied the appeals of Cedar Creek Wind Energy, LLC (“Cedar Creek”) and Milford Wind Corridor Phase I, LLC (“Milford”) because the Western Electricity Coordinating Council (“WECC”) registered both wind facilities as transmission owners and operators, subjecting the facilities to mandatory reliability standards. 

On June 6, 2011, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) released a Notice of Proposed Communications with the Department of Justice (“DOJ”).  This action was prompted by the potential merger of Duke Energy Corporation and Progress Energy, Inc. (see January 13, 2011 edition of the WER). 

On June 3, 2011, the United States House of Representatives Committee on Energy and Commerce, Subcommittee on Energy and Power, held a hearing on H.R. 909, A Roadmap for America’s Energy Future, sponsored by Representative Devin Nunes (R-CA).  While H.R. 909 includes provisions that address issues like the Outer Continental Shelf, oil shale, nuclear concerns, the Arctic National Wildlife Refuge (“ANWR”), and Environmental Protection Agency’s Greenhouse Gas regulations, much of the discussion during the hearing focused on the reverse auction proposal contained in the bill. 

On June 9, 2011, the Commission issued its order on rehearing in Docket Nos. EL00-66 and EL95-33 regarding whether the Commission should order refunds under section 206 of the Federal Power Act (“FPA”) to correct misallocations of Entergy System capacity costs (the “June 9 Order”).

On June 3, 2011, FERC issued an order (the “Order”) accepting and suspending PJM Interconnection L.L.C.’s (“PJM”) proposed revisions to its Open Access Transmission Tariff (“OATT”) and Reliability Assurance Agreement Among Load Serving Entities in the PJM Region (“Reliability Assurance Agreement”).  In its Order, the Commission accepted and suspended PJM’s proposed changes for a five month period, to be effective November 7, 2011, subject to refund, and to the outcome of a technical conference and a further order of the Commission.