On June 11, 2010, FERC released its Request for Comments Regarding Rates, Accounting, and Financial Reporting for New Electric Storage Technologies (the “Request”). In particular, FERC wants comments on how to develop a rate policy that allows storage technologies flexibility while complying with the Federal Power Act.
FERC News
FERC Rejects Midwest ISO’s Capacity Plan Again
On June 18, 2010, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) rejected the resource adequacy compliance filing by the Midwest Independent Transmission System Operator, Inc. (“Midwest ISO”) for failing to develop a permanent approach to congestion that limits aggregate delivery. In rejecting the filing, FERC again ordered the Midwest ISO to consider using location-specific capacity requirements in its resource adequacy plan.
FERC Confirmations for LaFleur and Moeller Delayed
On May 27, 2010, Senator Tom Harkin (D-IA) asked the Senate for en banc unanimous consent to confirm over one hundred nominees to various positions in federal agencies, the courts, and the military. Harkin’s request included Federal Energy Regulatory Commission nominee Cheryl LaFleur and sitting Commissioner Philip Moeller (see March 12, 2010 edition of the WER).
FERC Conditionally Approves Joint Operating Agreement between PJM and Carolina Power
PJMOn May 28, 2010, FERC conditionally accepted a new Joint Operating Agreement (“JOA”) between PJM Interconnection, L.L.C. (“PJM”) and Carolina Power & Light Company (“Carolina Power” together “PJM/Carolina”).
FERC and NERC Release Summer 2010 Reserve Margin Forecasts
On May 20, 2010, the Federal Energy Regulatory Commission’s (“FERC” or the “Commission”) Staff presented the “Summer 2010 Energy Market and Reliability Assessment” report. The assessment relied on data from the North American Electric Reliability Corporation’s (“NERC”) assessment of demand and capacity forecasts and data from several reliability regions.
FERC Clarifies Open-Access Transmission Services Policies
On May 20, 2010, FERC rejected SunZia Transmission LLC’s (“SunZia”) request for a declaratory order that it may allocate firm transmission rights, reserve capacity to affiliated generators, and use negotiated rate authority for a proposed transmission project in New Mexico and Arizona. However, FERC provided a description of how the project could be restructured in order to meet the Commission’s requirements.
FERC Approves NYISO Market Mitigation Reforms
On May 20, 2010, FERC accepted a request by the New York Independent System Operator, Inc. (“NYISO”) to subject three generators to a new market mitigation rate schedule (“Rate Schedule M-1”).
FERC Initiates an Inquiry into Spot Market Energy Price Caps in WECC
On May 20, 2010, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) issued an order initiating a Section 206 Proceeding to investigate the price cap in the Western Electricity Coordinating Council (“WECC”) outside of the California Independent System Operator Corporation (“CAISO”). FERC’s inquiry is aimed at eliminating market distortions that might result from a difference in bid caps in CAISO markets and the spot market price cap in the rest of the WECC.
FERC Announces New Reporting Rules for Intrastate and Hinshaw Pipelines
On May 20, 2010, FERC revised the contract reporting requirements for both intrastate natural gas pipelines providing service under Section 311 under the Natural Policy Act and Hinshaw pipelines operating under Section 1(c) of the Natural Gas Act (“NGA”), effective April 1, 2011. The new rule increases the frequency of reporting, covers more transactions, establishes a new form to be used for reporting, and considers all of the filings to be public information.
Senate Legislation Resolving FERC/CFTC Jurisdiction Issues Passes Voice Vote
On May 18, 2010, the U.S. Senate approved by voice vote an amendment to the financial reform bill (S. 3217, the “Restoring America’s Financial Stability Act”), which would attempt to resolve the ongoing jurisdictional debate between FERC and the Commodity Futures Trading Commission (“CFTC”).