On January 17, the Federal Energy Regulatory Commission (FERC) issued a Policy Statement providing guidance on the allocation of capacity for (a) new merchant transmission projects and (b) nonincumbent, cost-based, participant-funded transmission projects.
On December 18, 2012, the U.S. Court of Appeals for the District of Columbia Circuit issued its ruling in Calpine Corp. v. FERC and affirmed FERC’s conclusion that it does not have the authority to regulate public-utility charges to independent generators for the generators’ use of station power. The D.C. Circuit agreed with FERC that such sales are retail sales of power that are subject to retail jurisdiction. That jurisdiction extends to the question of whether or not a sale of retail power has occurred.
Please join us for a one-hour webinar addressing the operational and market problems created By the lack of coordination between the electric and natural gas industries—an issue of growing importance for FERC.
We will also discuss the operational, regulatory, and market proposals to improve coordination between the gas industry and an electric industry that is increasingly reliant on gas-power generation.
Wednesday, December 5, 2012
1-2 pm ET
For more information, contact Mary Ann K. Huntington at +1.202.739.5622 or email@example.com.
CLE Credit: CLE credit in PA, NY, NJ, IL, FL, and TX is currently pending approval.
MCLE Credit: This activity has been approved for Minimum Continuing Legal Education credit By the State Bar of California in the amount of one (1.0) hour of General Education. Morgan Lewis & Bockius LLP, Provider No. 4730, certifies that this activity conforms to the standards for approved education activities prescribed By the rules and regulations of the State Bar of California governing minimum continuing legal education.
On November 19, 2012, FERC approved a stipulation and settlement agreement with Gila River Power, LLC, in which Gila River admitted to manipulating the California ISO (CAISO) electric market By arranging nonexistent wheeling transactions to artificially reduce congestion on an interface used as a critical import path to the CAISO market. FERC concluded that this behavior violated FERC’s prohibition on electric market manipulation and the prohibitions on the submission of inaccurate information in electric marketing activities in FERC’s market-based tariff regulations and the CAISO tariff.
On November 15, the Federal Energy Regulatory Commission (FERC) issued a Policy Statement providing guidance on its evaluation of requests for rate incentives associated with electric transmission service. FERC reframed the nexus test of its earlier Order No. 679 to focus more directly on the requirements of that order and emphasized its expectation that applicants take all reasonable steps to mitigate the risks of a project before seeking incentive returns on equity (ROEs). As a result of the Policy Statement, FERC will apply a more rigorous analysis to determine whether incentives are appropriate, and it may become more difficult to obtain rate incentives, particularly an increased ROE.
According to news reports, President Obama has signed a directive to guide the actions of federal agencies in responding to cyber threats that explicitly permits actions outside government networks. President Policy Directive 20, which is not publicly available, reportedly directs agencies to take no more aggressive action than is necessary to address a threat. Under certain circumstances, however, the directive would permit the use of actions directed outside government networks—called “cyber operations”—but only for defensive purposes.
In a Notice of Proposed Rulemaking issued on October 18, 2012, FERC proposed to direct NERC to develop reliability standards addressing the risk posed By geomagnetic disturbances (GMDs). As a first stage, FERC proposed to direct NERC to develop a standard within 90 days of the final rule mandating that bulk-power system owners and operators develop operating procedures to mitigate the effects that GMDs have on reliability.
In a Notice of Proposed Rulemaking issued on September 20, 2012, FERC proposed to approve the Northeast Power Coordinating Council’s (NPCC’s) Regional Reliability Standard on Underfrequency Load Shedding (UFLS). The proposed PRC-006-NPCC-1 Regional Reliability Standard (Regional Standard) would address declining system frequency events in coordination with the existing continentwide PRC-006-1 UFLS Standard.
On September 20, FERC granted Idaho Wind Partners 1, LLC’s (Idaho Wind’s) petition for declaratory order concerning an Idaho Power Company (Idaho Power) tariff provision providing for curtailments of energy from qualifying facilities (QFs). Under that tariff provision, Idaho Power would have been able to curtail purchases from certain QFs if, due to operational circumstances, such purchases would require Idaho Power to dispatch higher cost resources to serve system load or would make Base Load Resources unavailable for serving the next anticipated load.
On September 20, the Federal Energy Regulatory Commission (FERC or the Commission) announced the creation of a new office, the Office of Energy Infrastructure Security (OEIS), which will focus on physical and cyber risks to energy facilities subject to FERC jurisdiction. Headed By the current director of the Office of Electric Reliability, Joseph McClelland, OEIS will assist the Commission in identifying security risks, communicating those risks to other federal and state agencies and regulated utilities, and developing solutions to mitigate those risks. Consistent with the existing approach taken By the Obama administration in the absence of new legislation, FERC's action draws on its existing statutory authority in an effort to increase the cyber resilience of critical infrastructure.