On March 18, 2010, FERC approved the North American Electric Reliability Corporation’s (“NERC”) plan to implement eight Critical Infrastructure Protection Reliability Standards, CIP-002-1 through CIP-009-1 (“CIP Standards”) by generator owners and operators of nuclear power plants in the United States (“Implementation Plan”). NERC’s Implementation Plan was filed on January 19, 2010 as part of a compliance filing in response to FERC’s request for additional information on December 17, 2009.
FERC News
FERC Seeks Written Comments on their Draft National Action Plan on Demand Response
On March 11, 2010, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) released its Draft National Action Plan on Demand Response (“National Action Plan”). Written comments, which will aid FERC in finalizing the National Action Plan, are due Thursday April 8, 2010.
FERC Releases Civil Penalty Guidelines and Orders NERC to Alter Procedures for Developing Standards
On March 18, 2010, FERC adopted a Policy Statement on Penalty Guidelines for its enforcement program (“Policy Statement”), a Notice of Proposed Rule Making (“NOPR”), and a series of orders intended to address the reliability of the bulk power system.
FERC Grants Negotiated Rate Authority for Tres Amigas, Declines to Disclaim Jurisdiction on Interconnection with ERCOT
On March 18, 2010, FERC approved Tres Amigas LLC’s (“Tres Amigas”) request to sell transmission service at negotiated rates, with conditions on anchor customers and initial capacity offerings. In a separate order, FERC declined the petition to disclaim jurisdiction over the transmission facilities that will interconnect the Tres Amigas project with the Electric Reliability Council of Texas (“ERCOT”) transmission system in Texas.
Renewable Energy Transmission Costs Fuel Debate between Utilities
In July 2009, Senate Energy and Natural Resources Committee Chairman Jeff Bingaman, (D-NM), introduced a bill, the “American Clean Energy Leadership Act,” which would allocate costs for new transmission and bar FERC from assigning the cost of a transmission project to a region or “sub-region” unless FERC can prove the costs are “reasonably proportionate to measureable economic and reliability benefits.”
Obama Nominates Cheryl A. LaFleur for Commissioner of FERC; Moeller Renominated
On March 8, 2010, President Barack Obama nominated Cheryl A. LaFleur for Commissioner of the Federal Energy Regulatory Commission (“FERC” or the “Commission”). If confirmed by the Senate, LaFleur would fill the seat vacated by Suedeen Kelly in December 2009 for a term to expire on June 30, 2014.
FERC Issues Order Approving $350,000 Fine against Florida Reliability Organization
On March 5, 2010, FERC approved a settlement order under which the Florida Reliability Coordinating Council, Inc. (“FRCC”) will pay a $350,000 civil penalty for its part in the February 26, 2008 power outage in southeastern Florida. This is the first time that a regional reliability entity has been fined for violating a mandatory reliability standard.
FERC Approves Line Transfer from Trans Bay to Pittsburg Power
On March 4, 2010, FERC approved a transfer of title for the 53-mile, 400 MW high voltage, direct-current transmission line and its associated facilities from Trans Bay Cable LLC (“Trans Bay”) to Pittsburg Power Company (“Pittsburgh Power”).
FERC Orders Review of NERC Notice of Penalty for Violation of Reliability Standard
On February 26, 2010, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) issued an Order Initiating Review of Notice of Penalty filed by the North American Reliability Corporation (“NERC”) against Turlock Irrigation District (“Turlock”). This is the first time that FERC has questioned a penalty issued by NERC.
FERC Appoints a New Director of Investigations
On March 1, 2010, Larry Parkinson started work as the new director of the Division of Investigations at the Federal Energy Regulatory Commission (“FERC” or the “Commission”). As Director of Investigations, Mr. Parkinson will report to Norman Bay, the head of FERC’s Office of Enforcement.