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On November 20, 2009, the California Independent System Operator Corporation (“CAISO”) filed its Convergence Bidding Design Policy (“Conceptual Filing”) to the Federal Energy Regulatory Commission (“FERC” or the “Commission”).  Convergence bidding allows for the submission of bids to buy or sell electricity in the day–ahead market that will not be consumed or produced by the bidder in real time.  Instead, these “virtual” transactions enable market participants to either buy or sell electricity in the day-ahead market and then undertake the opposing obligation to sell or buy the same amount of electricity in real time.

On January 29, 2010, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) conditionally approved the Southwest Power Pool Inc.’s (“SPP”) proposed interim interconnection service as well as its accompanying pro forma Interim Large Generator Interconnection Agreement (“Interim LGIA”). 

On January 29, 2010, the United States Court of Appeals for the DC Circuit (“DC Circuit”) denied a petition by state utility regulators in New England to challenge a Federal Energy Regulatory Commission (“FERC” or the “Commission”) decision that applied a higher return on equity (“ROE”) rate for ISO New England, Inc. (“ISO-NE”) as an incentive to complete transmission projects more quickly. 

On January 21, 2010, FERC issued a declaratory order that Western Grid Development LLC’s (“Western Grid”) battery storage devices (“Projects”) are wholesale transmission facilities subject to FERC jurisdiction.  FERC also granted Western Grid’s request for incentive rate treatment for the Projects.  However, FERC reiterated that since energy storage devices do not fit easily into the category of traditional generation, transmission, or distribution, FERC will assess storage devices on a case-by-case basis.

On January 22, 2010, the United States Court of Appeals for the D.C. Circuit (“DC Circuit”) remanded back to the Federal Energy Regulatory Commission (“FERC” or the “Commission”)  its final rule that adopted changes to the interstate natural gas pipeline reporting rules and financial reforms asserting that FERC failed to adequately respond to a dissenting commissioner in its order.

On January 21, 2010, FERC issued a Notice of Inquiry (“NOI”) seeking comments on existing barriers to integrating variable energy resources (“VERs”) into the electric grid and whether reforms are needed to remove those barriers.  FERC will use the comments to determine whether changes to wholesale electricity tariffs are necessary to ensure they are “just, reasonable and not unduly discriminatory.”

On January 22, 2010, FERC presiding Administrative Law Judge Carmen Cintron, issued an initial decision in its anti-manipulation case against Brian Hunter, finding that he engaged in fraudulent conduct and intended to lower the settlement price of natural gas futures contracts while he worked for Amaranth Advisors LLC (“Amaranth”) in violation of the Commission’s rule on anti-manipulation.

On January 21, 2010, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) released a Notice of Proposed Rulemaking (“NOPR”) to allow for credit reforms in the organized wholesale electric markets.  Previously, most wholesale electric markets developed credit practices on a case-by-case basis, depending on individual needs.  Due to the current financial situation, some groups have become concerned that these varying credit practices would not be sufficient to protect the markets, and subsequently the consumers, from the high costs associated with credit risks and credit defaults.