Tag Archives: FERC

Department of Energy Proposes Rule Benefiting Coal and Nuclear to FERC

On September 28, 2017, the US Department of Energy (DOE) submitted a proposed rule to the Federal Energy Regulatory Commission (FERC) that, if implemented, could reshape organized wholesale electricity markets. Citing electric grid reliability and resiliency issues like the 2014 Polar Vortex and recent hurricanes, DOE asked FERC to enact a new compensation system for … Continue Reading

FERC Issues Policy Statement on Storage Resources with Multiple Payment Streams

Last week, the Federal Energy Regulatory Commission (FERC) issued a Policy Statement to provide guidance on the ability of electric storage resources to recover costs through both cost-based and market-based rates concurrently. The Policy Statement appears intended to reconcile two lines of FERC precedent on this topic. The issue of multiple payment streams is one … Continue Reading

FERC Proposes to Remove Barriers to Wholesale Market Participation for Electricity Storage and Distributed Energy Resource Aggregators

On November 17, 2016, the Federal Energy Regulatory Commission (FERC) issued a notice of proposed rulemaking (NOPR) that, if adopted, would require organized wholesale electricity markets (RTO/ISO markets) to modify their open access transmission tariffs and market rules to accommodate electric storage resources and allow participation of distributed energy resource aggregators. This NOPR is part … Continue Reading

Timing Is (Almost) Everything: FERC Implements D.C. Circuit Guidance on NEPA Review of Multiple Pipeline Construction Projects

In the wake of two recent D.C. Circuit decisions, the Federal Energy Regulatory Commission (FERC) has begun to implement its new policy concerning the review of natural gas pipeline construction proposals under the National Environmental Policy Act (NEPA). To decide whether a NEPA review must include other projects proposed by the pipeline, FERC will look … Continue Reading

Certificated Natural Gas Storage Capacity Is Based on Science, Not Sales, FERC Rules

The Federal Energy Regulatory Commission (the Commission) issued an order on Thursday, March 19, 2015, refusing to allow the abandonment of certificated working gas capacity when the reason for the request was unrelated to the physical characteristics of the storage facility and unsupported by engineering or geological data.  The applicant had sought the abandonment authorization … Continue Reading

FERC Commissioner Moeller Convenes Public Meeting Focusing on Resolving Natural Gas Supply Challenges for Electric Generators

Commissioner Philip Moeller of the Federal Energy Regulatory Commission (FERC) held a public meeting on September 18, 2014 to discuss ideas to facilitate and improve the way in which natural gas is traded and to explore the concept of establishing a centralized natural gas trading platform.  Although not an official FERC conference, the ideas at … Continue Reading

D.C. Circuit Rules that FERC May Not Segment Its Evaluation of the Environmental Impact of Related Natural Gas Pipeline Construction Projects, Regardless of Whether They Are Separately Proposed

The D.C. Circuit Court of Appeals recently issued an opinion holding that the Federal Energy Regulatory Commission (FERC) violated the National Environmental Policy Act (NEPA) when it segmented its evaluation of the environmental impact of four separately proposed but connected projects to upgrade the “300 Line” on the Eastern Leg of Tennessee Gas Pipeline Company’s … Continue Reading

FERC Defers to Exclusionary State and Local Laws in Transmission Planning

In three separate rehearing orders issued last Thursday, May 15, 2014, the Federal Energy Regulatory Commission reversed course on its decision in Order No. 1000 to prohibit references in transmission tariffs to state laws such as rights of first refusal (ROFR) to build transmission expansions.  The Commission determined on further consideration that excluding such state … Continue Reading

FERC Imposes Whopping Penalty Against Bank and Traders for Allegedly Manipulating Western Power Prices

by Dan Watkiss In a July 16 order, the Federal Energy Regulatory Commission (FERC) assessed civil penalties of $453 million against a British banking conglomerate (BCL) and four of its power traders for manipulating western electricity markets from from November 2006 to December 2008 in violation of the Federal Power Act (FPA) and Commission regulation … Continue Reading

NYISO the Next Battlefield for Behind-the-Meter Generation Demand Response

by William Friedman The Federal Energy Regulatory Commission’s (FERC) approval of the New York Independent System Operator’s (NYISO) demand response compensation program left out a mechanism for compensating demand response from behind-the-meter generation, which prompted the latest outcry from demand response providers.   The demand response providers filed a complaint with FERC claiming discrimination between methods … Continue Reading

Inter-regional Plans for the Nation’s High-Voltage Transmission Grid Land on FERC’s Doorstep

by Christopher S. Bloom Jurisdictional Public Utility Transmission Providers (TP) filed earlier this week with the Federal Energy Regulatory Commission (FERC) inter-regional plans for the efficient and economical coordination of the construction and financing of high-voltage electricity transmission lines pursuant to FERC Order 1000. The inter-regional plans are to address state and regional needs and … Continue Reading

Southwest Power Pool to Finalize New Integrated Marketplace

by Christopher S. Bloom The Southwest Power Pool’s (SPP) deadline for revising its tariff to add day-ahead and real-time energy to its Integrated Marketplace is this Friday, February 15.  Federal Energy Regulatory Commission (FERC) granted conditional acceptance of SPP’s revised tariff in October, contingent upon SPP submitting various complying revisions. The Integrated Marketplace is a … Continue Reading

Very Strict Liability for False or Materially Incomplete Representations: Forfeiture of FERC Market Pricing Authority

by Dan Watkiss and William Friedman “No showing of the respondent’s intent or mindset is necessary to show a violation of [18 CFR § 35.41(b)] has occurred,” explained a divided (4-1) Federal Energy Regulatory Commission (FERC) last week in an order suspending for six-months the authority of J.P. Morgan Ventures Energy (JPM) to sell power at … Continue Reading

FERC Declares That Proposed Wind Curtailment Violates PURPA

by Melissa Dorn The Federal Energy Regulatory Commission (FERC) ruled in September that Idaho Power Company’s (Idaho Power) proposed curtailment policy for purchases from qualifying facilities (QF) violates the Public Utility Regulatory Policies Act of 1978 (PURPA) because it allows the utility to curtail its wind power purchases under previously negotiated power purchase agreements when … Continue Reading

FERC General Counsel Argues Applying Dodd-Frank Regulations to RTO/ISO Products is Potentially Harmful

by Elizabeth P. Philpott The Federal Energy Regulatory Commission (FERC) General Counsel recently argued to the Commodity Futures Trading Commission (CFTC) that “[a]pplying Dodd-Frank swap regulations to [regional transmission organization] RTO and [independent system operator] ISO products and services is not only unnecessary but also potentially harmful.” Transactions entered under RTO and ISO tariffs, according to … Continue Reading

Alleged Agreement to Suppress Prices for Mineral Rights Highlights the Antitrust Risk Facing Energy Companies

by Jon B. Dubrow and Shauna A. Barnes Recently published reports of land acquisition activities between Chesapeake Energy and EnCana senior executives will likely expose those companies to a Department of Justice (DOJ) antitrust investigation and challenge, as well as, if accurate, civil antitrust claims.  This matter highlights the risks that energy companies face when … Continue Reading

FERC Asserts Jurisdiction Over Bundled Renewable Energy Credits

by Bradford K. Gathright On April 20, 2012, the Federal Energy Regulatory Commission (FERC) issued an order confirming that it has no jurisdiction under the Federal Power Act (FPA) with respect to sales of state-issued renewable energy credits (RECs) that are not bundled with sales of wholesale energy, but asserted that it does have jurisdiction … Continue Reading

FERC Proposes to Adopt NAESB Standards for Demand Response and Energy Efficiency

by Elizabeth P. Philpott The Federal Energy Regulatory Commission (FERC) issued a Notice of Proposed Rulemaking (NOPR) on April 19 to amend its regulations “to incorporate by reference the business practice standards adopted by the Wholesale Electric Quadrant of the North American Energy Standards Board (NAESB) that pertain to the measurement and verification of demand … Continue Reading

FERC Conditionally Accepts New Enforcement Mechanism for Electric Reliability Standards

by Elizabeth P. Philpott The U.S. Federal Energy Regulatory Commission (FERC) recently approved with conditions the North American Electric Reliability Corporation’s (NERC) petition proposing the use of the “Find, Fix, Track and Report” (FFT) to report possible lesser-risk violations of Reliability Standards.  FERC determined that the FFT initiative would more efficiently process lesser-risk violations and promote … Continue Reading

Welcome to McDermott’s Energy Business Law Blog

Welcome to McDermott’s Energy Business Law Blog.  Our objective in this forum is to provide our readers with insights into the evolving regulatory, business, tax and legal issues affecting the U.S. and international energy and commodities markets.  Contributions to this blog will be a collective effort of lawyers and professional staff that are part of … Continue Reading

FERC Enforcement Priorities Unchanged for 2012

by Elizabeth Philpott Fraud and market manipulation, serious violations of the reliability standards, anticompetitive conduct, and conduct that threatens the transparency of regulated markets will continue to be the focus of FERC investigations and enforcement actions in 2012 according to the 2011 Annual Report on Enforcement. The 2011 Report, issued November 17, 2011, describes the … Continue Reading
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