On February 22, 2011, Michael Bardee, General Counsel for FERC, submitted comments in response to the Commodity Futures Trading Commission’s (“CFTC”) Notice of Proposed Rulemaking (“NOPR”) on the elective exception to mandatory clearing for swaps under the Commodity Exchange Act (“CEA”).
FERC News
FERC Issues an Order to Show Cause for Violation of Market Behavior Rules
On February 14, 2011, FERC issued an order to show cause (the “Order”) to Moussa I. Kourouma, d/b/a Quntum Energy LLM (“Quntum”) for alleged violations of the Commission’s regulations.
FERC Issues NOPR on Regulation Service & NOI on Locational Exchanges
At the February 17, 2011 meeting, FERC issued a Notice of Proposed Rulemaking (“NOPR”) on compensation for regulation service and a Notice of Inquiry (“NOI”) seeking comment on locational exchanges for wholesale power.
FERC Initiates Inquiry into Outages and Disruptions in Texas and the Southwest
On February 14, 2011, FERC issued an order directing staff to initiate an inquiry into outages and disruptions of service in Texas and the Southwest in early February 2011 (the “Order”).
FERC Submits Fiscal Year 2012 Budget Request
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.
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.