On February 14, 2011, the Commission submitted their Fiscal Year (“FY”) 2012 Budget Request for $304,600,000. The budget request represents a 2.8 percent increase over the 2010 actualized numbers, and that amount equals $8,303,000. The oil industry is the one industry to show a decrease in the Commission budget allotment, and it dropped by 0.6 percent or $7,656,000 for FY 2012.
FERC News
Department of Energy Inspector General Releases Report on FERC and Cyber Security
On January 26, 2011, the Inspector General of the Department of Energy (“DOE IG”) released an audit report on the Federal Energy Regulatory Commission’s (“FERC” or the “Commission”) Monitoring of Power Grid Cyber Security” (the “Report”).
PJM Power Providers File FERC Complaint Over New Jersey Law
On February 1, 2011, PJM Power Providers Group (“P3”), an association of 12 energy suppliers in the PJM Interconnection, L.L.C. (“PJM”) region, filed a complaint against PJM at the Federal Energy Regulatory Commission (“FERC”).
Incentive Rates for Offshore Transmission Line Receives Opposition
On January 31, 2011, several parties submitted formal protest to the Federal Energy Regulatory Commission (“FERC” or “Commission”) opposing the Atlantic Wind Connection (“AWC”) project request for incentive rate treatment which included a 13.58 percent return on equity (“ROE”).
FERC Approves PJM Demand Response Products
On January 31, 2011, FERC approved new demand response products for PJM Interconnection, L.L.C. (“PJM”) through two separate orders that accepted revisions to the PJM open access transmission tariff (“OATT”).
FERC Enforcement Issues Notice of Alleged Violations for Reliability Compliance
On January 25, 2011, the staff of the Office of Enforcement (“OE” or “Enforcement”) for FERC issued a Notice of Alleged Violations against the Grand River Dam Authority (“GRDA”) for multiple violations of mandatory reliability standards.
FERC Denies Requests for Rehearing on Preliminary Notice of Violations Issue
On January 24, 2011, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) issued an order (“January 24 Order”) denying requests for rehearing of their December 17, 2009 order (“December 17 Order”) which authorized the Secretary of the Commission (“Secretary”) to issue a document entitled Staff’s Preliminary Notice of Violations.
GAO Report Identifies Progress and Gaps in Both FERC and State Cybersecurity Standards for Smartgrid
On January 12, 2011, the U.S. Government Accountability Office (“GAO”) released a report entitled “Electricity Grid Modernization: Progress Being Made on Cybersecurity Guidelines, but Key Challenges Remain to be Addressed” (the “Report”). This Report highlighted key issues which could cause concern for the smart grid system and identified regulatory problems affecting smart grid cybersecurity standards.
FERC Releases Report on Frequency Response Metrics and Invites Comments
On January 20, 2011, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) posted a report by the Lawrence Berkeley National Laboratory (“LBNL”) called “Use of Frequency Response Metric to Assess the Planning and Operating Requirements for Reliable Integration of Variable Renewable Generation” along with its five supplementary papers (together, the “Report”).
FERC Approves CIP Violation Risk Factors and Severity Levels
On January 20, 2011, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) conditionally approved the Violation Risk Factors (“VRF”) and Violations Severity Levels (“VSL”) for version 2 and 3 of the Critical Infrastructure Protection (“CIP”) reliability standards. The CIP standards encompass many security concerns including sabotage reporting and cyber security.