On July 15, 2010, FERC ruled that sections of the Federal Power Act (“FPA”) and the Public Utility Regulatory Policies Act of 1978 (“PURPA”) do not preempt the California Public Utilities Commission’s (“CPUC”) decision to require utilities to offer a minimum price for power from certain small combined heat and power (“CHP”) generators if they are Qualifying Facilities (“QF”) under PURPA.
FERC News
DC Circuit Turns Away Appeals on California ISO’s “MRTU” Overhaul
In a July 23, 2010 opinion, the United States Court of Appeals for the D.C. Circuit (“D.C. Circuit”) denied several appeals regarding the Calfornia Independent System Operator Corporation’s (“CA ISO”) Market Redesign and Technology Upgrade (“MRTU”) initiative, in which the CA ISO overhauled its tariff, markets and the technology it employs to administer those markets.
FERC Approves SPP’s Integrated Transmission Plan
On July 15, 2010, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) conditionally approved the Southwest Power Pool, Inc’s (“SPP”) modified transmission planning process, the Integrated Transmission Plan (“ITP”). The ITP will be used to determine future regional transmission needs.
Technical Conference on Reliability Standards Raises Issues
On July 6, 2010, the Commission held a Technical Conference to discuss issues related to the development and enforcement of mandatory Reliability Standards.
FERC Revises Compliance Timeline for Both MOD Reliability Standards and NAESB Business Practices
On July 15, 2010, the Commission released Order No. 729-B, which granted requests for rehearing on the implementation timeline for Order No. 729-A. In its new order, FERC decided to calibrate the timing of the MOD Reliability Standards implementation date from the date of FERC approval, not the date of publication in the Federal Register.
Smart Grid Update: One Year Since Smart Grid Policy Statement
On July 15, 2010, Ray Palmer from the Office of Electric Reliability presented an update the Commission’s Smart Grid Policy Statement (the “Policy Statement”) at the Commission’s monthly meeting. The Commission originally issued the Policy Statement last July (see March 20, 2010 edition of the WER).
FERC Grants Rate Authority to Champlain for Transmission Project
On July 1, 2010, the Commission granted Champlain Hudson Power Express, Inc. (“Champlain”) authority to charge negotiated rates for transmission rights on its high voltage direct current (“HVDC”) project from Montreal, Quebec to New York City and New England (the “Project).
Duke Energy Ohio and Duke Energy Kentucky Submit Initial Filing to Withdraw from Midwest ISO and Join PJM by January 1, 2012
On June 25, 2010, Duke Energy Ohio, Inc. (“DEO”) and Duke Energy Kentucky, Inc. (“DEK”) filed the first of several filings with the Federal Energy Regulatory Commission (“FERC” or the “Commission”) seeking approval to transfer control of utility assets from the Midwest Independent System Operator, Inc. (“Midwest ISO”) to PJM Interconnection L.L.C. (“PJM”).
FERC Approves Staff Audit, Directs Florida’s Grid Operator, FRCC, to Make Further Reliability Enforcement Changes
On June 23, 2010, FERC approved an Audit Report (the “Audit”) from the Division of Audits in the Office of Enforcement (“OE”) along with Staff from the Office of Electric Reliability. The Audit evaluated Florida Reliability Coordinating Council, Inc.’s (“FRCC”) Regional Entity (“RE”) function and related compliance.
Senate Confirms New FERC Commissioner LaFleur; Moeller Confirmed for Second Term
On June 22, 2010, the United States Senate confirmed Cheryl A. LaFleur as Commissioner to the vacant seat on the Federal Energy Regulatory Commission (“FERC” or the “Commission”). LaFleur’s term will expire on June 30, 2014. LaFleur previously worked for National Grid for over twenty years.