On July 15, 2010, the Midwest Independent Transmission System Operator, Inc. (“Midwest ISO”) submitted to the Federal Energy Regulatory Commission (“FERC” or the “Commission”) a new proposal to allocate the costs of new transmission projects. Notably, the proposal asks for the creation of a new category of projects, the Multi Value Projects (“MVPs”) category, and widely socialized costs for such projects across the entire Midwest ISO footprint.
FERC News
FERC Conditionally Approves NYISO Report on Lake Erie Loop Flow Problems
On July 15, 2010, FERC conditionally approved the New York Independent System Operator, Inc.’s (“NYISO”) report on solutions to the Lake Erie region loop flow problems.
FERC Rules CPUC Feed-In Tariffs Permissible Under Certain Conditions
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.
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”).