On November 16, 2009, FERC issued Order No. 717-B in an attempt to clarify its confusing decision in Order No. 717-A regarding what utility employees should be considered “marketing function employees.”
FERC News
FERC Clears Enforcement Case Backlog
On November 13, 2009 the FERC approved 564 penalties submitted in an Omnibus Notice of Penalty (“Omnibus Filing”) by the North American Electric Reliability Corporation (“NERC”).
FERC Allows NYISO to Subject Three Generators to New Market Mitigation Rules
On November 3, 2009, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) conditionally approved the New York Independent System Operator, Inc.’s (“NYISO”) request to subject three generators to a new market mitigation measure, effective September 8, 2009, in response to conduct NYISO identified as an abuse of market power (“November 3 Order”).
FERC Prohibits Utility from Requiring Wind Generators to Provide Regulation Services for Exported Power
On November 10, 2009, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) rejected a proposal by NorthWestern Energy (“NorthWestern”) to amend its Open Access Transmission Tariff (“OATT”) to require that wind generators provide their own regulation services for power exported outside of its balancing authority area.
Former FERC Chairmen File Amicus Brief Regarding Backstop Authority
On October 21, 2009, four former chairmen of the Federal Energy Regulatory Commission (“FERC” or the “Commission”) filed a brief as amici curiae at the United States Supreme Court (“Supreme Court”), arguing that a lower court’s interpretation of the Commission’s backstop transmission siting authority was too narrow (see February 20, 2009 edition of WER).
Oral Arguments on Mobile-Sierra Doctrine Made Before the Supreme Court
On November 3, 2009, the United State Supreme Court (“Supreme Court”) heard oral arguments on whether the Mobile-Sierra doctrine applies to third-party challenges to contracts.
FERC Approves Cost Allocation Proposal for Cross-Border Facilities
On November 3, 2009, the Federal Energy Regulatory Commission (“FERC” or the “Commission) accepted revisions to the Joint Operating Agreement (“JOA”) between the PJM Interconnection, L.L.C. (“PJM”) and the Midwest Independent Transmission System Operator, Inc. (“Midwest ISO”) that allocate the costs of economic cross-border facilities.
FERC Disclaims Jurisdiction over Transmission Lines Interconnecting SPP to ERCOT
On November 5, 2009, FERC issued a declaratory order disclaiming jurisdiction over proposed transmission lines that would connect wind generators located in the Texas portion of the Southwest Power Pool (“SPP”) to load in the Electric Reliability Council of Texas (“ERCOT”).
FERC Approves New Cost Allocation Plan for Midwest ISO
On October 23, 2009, the Federal Energy Regulatory Commission (“FERC” or the “Commission) approved an interim Midwest Independent Transmission System Operator, Inc. (“Midwest ISO”) Open Access Transmission, Energy and Operating Reserve Markets Tariff (“Tariff”) amendment to revise the method for allocating the cost of network upgrades for generation interconnection projects that meet the Midwest ISO’s regional expansion criteria and benefits standards (“RECB”). The Tariff will now require that generators pay all interconnection costs to lines smaller than 345 kV and 90 percent of network upgrades for lines that are 345 kV or greater.
Nine Agencies Sign MOU to Expedite Transmission Siting on Federal Lands
On October 28, 2009, the Obama Administration released a Memorandum of Understanding (“MOU”) signed by nine agencies to streamline and expedite the siting and construction of electric transmission lines on federal land.