On February 20, 2009, the American Public Power Association (“APPA”) issued a report entitled APPA’s Competitive Market Plan: A Roadmap for Reforming Wholesale Electricity Markets (“Market Plan”). The Market Plan proposes reforms for RTO markets that it says would provide better competition and consumer protection within Regional Transmission Organizations (“RTOs”) while maintaining reliability.
FERC News
FERC Upholds PJM Supplier Test Decision but Requests Modifications
By Troutman Pepper Locke on
Posted in Uncategorized
On February 19, 2009, the Commission ruled that PJM’s three-pivotal-supplier test, used to identify sellers that can exercise market power, was not unjust and unreasonable and rejected complaints to have the test terminated. However, the Commission did require PJM to reform the test’s mitigation measures applied to suppliers who fail the test.
FERC Approves New “Anchor” Customer Model for Merchant Transmission
By Troutman Pepper Locke on
Posted in Uncategorized
On Thursday, FERC approved new flexible rate mechanisms for two merchant transmission projects. Chinook Power Transmission, LLC (“Chinook”) and Zephyr Power Transmission, LLC (“Zephyr”) plan to build 2,100 miles of transmission to deliver wind power from Montana and Wyoming to customers in Nevada and other Southwestern states.
FERC Rejects Settlement with Amaranth
By Troutman Pepper Locke on
Posted in Uncategorized
On February 12, 2009, in an unusual move, FERC rejected a settlement between the Commission’s Office of Enforcement Litigation Staff (“Staff”), the defunct hedge fund Amaranth Advisors LLC (“Amaranth”) and two of Amaranth’s traders, Brian Hunter and Matthew Donohoe. The parties submitted the settlement, which was not made public, to the Commission for approval on November 24, 2008.
FERC Refuses to Order ISO-NE to Modify its OATT
By Troutman Pepper Locke on
Posted in Uncategorized
On February 3, 2009, FERC denied a complaint by the Maine Public Utilities Commission (“Maine PUC”) alleging that ISO New England Inc.’s (“ISO-NE”) Open Access Transmission Tariff (“OATT”) compensates generators supplying reactive power for certain capital costs twice.
FERC Approves Plan to Better Integrate ISO-NE Interconnection Queue and Forward Capacity Market
By Troutman Pepper Locke on
Posted in Uncategorized
On January 30, 2009, FERC issued an order approving ISO-NE tariff revisions to integrate the FCM and the generator interconnection process. The modified OATT provisions will offer two levels of interconnection service, one of which will have a deliverability requirement.
FERC Okays Duquesne’s Plan to Stay at PJM
By Troutman Pepper Locke on
Posted in Uncategorized
On January 29, the Federal Energy Regulatory Commission (“FERC” or “the Commission”) approved a settlement agreement that will allow Duquesne Light Co. (“Duquesne”) to remain in the PJM Interconnection LLC (“PJM”).
FPL Hopes to Settle Investigation into 2008 Blackout with FERC
By Troutman Pepper Locke on
Posted in Uncategorized
On January 27, 2009, Florida Power & Light Co. (“FPL”), a subsidiary of FPL Group, Inc., stated that it hopes it can reach a settlement with FERC staff regarding the February 26, 2008 blackout in Southern Florida. If FPL is unable to settle with FERC, it could end up facing severe fines for the incident under FERC’s power to assess civil penalties for violations of the mandatory reliability standards.
Wellinghoff Named Acting FERC Chairman
By Troutman Pepper Locke on
Posted in Uncategorized
On January 23, 2009, President Obama named Commissioner Jon Wellinghoff as the acting Chairman of the Federal Energy Regulatory Commission (“FERC” or “Commission”). When Commissioner Joseph T. Kelliher announced he was stepping down as Chairman in early January, Wellinghoff and the other Democrat on the Commission, Suedeen Kelly, were seen as the leading contenders for the position.
FERC Wins Battle Against Connecticut Attorney General
By Troutman Pepper Locke on
Posted in Uncategorized
On January 23, 2009 the United States Court of Appeals for the District of Columbia Circuit (“DC Circuit”) upheld FERC’s decision denying Connecticut’s challenge to the current “hybrid” electricity market. The DC Circuit decided the current hybrid market is just and reasonable as an interim solution whereas the alternative proposed by Connecticut was not adequately supported.