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.
FERC News
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.
FERC Staff Releases National Action Plan on Demand Response
On June 17, 2010, FERC Staff released its final National Action Plan for Demand Response (“National Action Plan” or “Plan”). The focus of the Plan is to encourage the use of demand response to meet national energy independence and security goals.
FERC Announces New Legal Unit for Reliability Issues
On June 17, 2010, Thomas Sheets, the General Counsel of FERC, announced a new unit at FERC to assist with legal issues regarding reliability. The announcement came during FERC’s June monthly meeting.
FERC Issues Rulemaking on Transmission Cost Allocation; Approves SPP Plan
On June 17, 2010, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) unanimously approved the Notice of Proposed Rule Rulemaking (“NOPR”) on Transmission Planning and Cost Allocation by Transmission Owning and Operating Public Utilities at FERC’s monthly meeting. The NOPR seeks to build on Order No. 890, Preventing Undue Discrimination and Preference in Transmission Service.
FERC Clarifies Reporting Requirements for Natural Gas Transactions
On Thursday June 17, 2010, FERC issued a clarification order regarding the terms and features of Form No. 552, the annual report for natural gas transactions (Transparency Provisions of Section 23 of the Natural Gas Act, Order No. 704-C, 131 FERC ¶ 61,246 (2010) (“Order No. 704-C”)).
FERC Requests Comments on New Electric Storage Technologies
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 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”).