On December 17, 2009, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) released an order (“Enforcement Order”) that authorizes the Secretary of the Commission to issue a Staff’s Preliminary Notice of Violations (“Notice”) after the entity that is subject to an investigation has been given the opportunity to respond to staff’s preliminary findings. Additionally, the Commission released a Policy Statement where the Office of Enforcement (“OE”) will provide exculpatory evidence to those entities subject to their investigations and respondents in administrative enforcement proceedings.
FERC News
FERC Order Tightening Rules on Estimating Available Grid Capacity
On November 24, FERC approved six Reliability Standards, which mandate the methods transmission owners must use to calculate Available Transfer Capability (“ATC”).
FERC Chairman Wellinghoff Testifies on Energy Storage
On December 10, 2009, Federal Energy Regulatory Commission (“FERC” or the “Commission”) Chairman Jon Wellinghoff testified on the technical issues related to integrating energy storage into the electricity grid at a hearing before the Senate Committee on Energy and Natural Resources.
FERC Denies Request that Developer Claims is Needed to Save 400 MW Project
On December 3, 2009, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) denied Clipper Windpower Development Company, Inc.’s (“Clipper Windpower”) emergency motion and request for temporary waiver of part of the California Independent System Operator Corporation’s (“CAISO”) Large Generator Interconnection Procedures (“LGIP”). In its motion, Clipper Windpower argued that the current security deposit requirements within CAISO’s LGIP would force it to post a $7.5 million deposit for upgrades that would cost approximately $4.6 million.
Army Corps Challenges FERC Ruling on Jurisdiction
On November 25, 2009, the United States Army Corps of Engineers (“Army Corps”) filed a request for rehearing of FERC’s order requiring the Army Corps to comply with mandatory electric reliability standards.
FERC Approves Plan to Allow PJM to Provide Ancillary Service in Midwest ISO
On December 2, 2009, the FERC approved an uncontested settlement between PJM Interconnection LLC (“PJM”), Midwest Independent Transmission System Operator, Inc (“Midwest ISO”), and Buckeye Power Inc., and dismissed a complaint by Buckeye Power.
No FERC Jurisdiction for On-Site Solar Generating Project Sales to End-Use Customers
On November 19, 2009, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) issued a declaratory order confirming that sales by a developer of on-site solar generating projects (“PPA Provider”) to end-use customers do not constitute the sale or transmission of electric energy under FERC’s control.
Green Energy Express Incentives Contingent on CAISO Approval
On November 23, 2009, FERC approved Green Energy Express LLC’s (“Green Energy”) request for rate incentives, conditioned on approval by the California Independent System Operator (“CAISO”).
California Approves Portion of the Devers-Palo Verde 2 Transmission Line
On November 20, 2009, the California Public Utilities Commission (“California PUC”) approved Southern California Edison Company’s (“SoCal Edison”) amended petition to build a 128-mile, 500-kV portion of the Devers-Palo Verde 2 (“DPV2”) project.
FERC Investigates Pipeline Rates
On November 19, 2009, the Federal Energy Regulatory Commission (“FERC” or “Commission”) announced the launch of investigations into the interstate natural gas pipeline rates for Northern Natural Gas Company (“Northern Natural”), Great Lakes Gas Transmission LP (“Great Lakes”), and Natural Gas Pipeline Company of America LLC (“NGPL”) to determine if the pipelines are over-recovering cost of service, causing unjust and unreasonable rates under section 5 of the Natural Gas Act.