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Linda Walsh

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On November 19, we published an article on the Federal Energy Regulatory Commission’s (“FERC”) efforts to reform transmission planning and cost allocation issues addressed in FERC’s Advance Notice of Proposed Rulemaking (“ANOPR”).  Just last week, FERC issued a notice seeking comments in response to its November 15, 2021 technical conference on ANOPR in Docket No. RM21-17.  Please be advised that all interested persons are invited to file post-technical conference comments to address the issues raised during that event on or before November 30, 2021. …
Continue Reading Updates on FERC Transmission Planning Process Reform – 11/22/21

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Regulatory Update – FERC transmission planning process reform

On July 15, 2021, the Federal Energy Regulatory Commission (“FERC”) issued an Advanced Notice of Proposed Rulemaking (“ANOPR”) to broadly examine FERC’s current electric regional transmission planning, cost allocation, and generator interconnection policies.  The ANOPR seeks public comment on “potential reforms for longer-term regional transmission planning and cost-allocation processes that take into account more holistic planning, including planning for anticipated future generation, rethinking cost responsibility for regional transmission facilities and interconnection-related network upgrades, and enhanced transmission oversight over how new transmission facilities are identified and paid for.”  Issuance of a final rule could have a significant impact on transmission grid planning processes throughout the nation.  Below are some key takeaways and perspectives based on the ANOPR and its public comment process.…

Continue Reading Updates on FERC Transmission Planning Process Reform

Electric powerlines

FERC recently issued a Notice of Proposed Rulemaking (NOPR) that would eliminate the need for electric power sellers with market-based rate authority who sell into certain independent system operator (ISO) and regional transmission organization (RTO) capacity markets to file two screens—the pivotal supplier screen and wholesale market-share screen—with FERC, which would simplify the horizontal market…

The Federal Energy Regulatory Commission (FERC) took swift action to respond to the recent United Airlines v. FERC decision regarding income tax allowances, as well as to implement changes stemming from the Tax Cuts and Jobs Act “to ensure that the economic benefits related to the reduction in the Federal corporate income tax rate are passed through to customers.” Specifically, FERC revised its income tax allowance policy for Master Limited Partnership (MLP) pipelines, with implications for other pass-through entities. In addition, it acted to implement federal income tax rate reductions and ordered changes affecting all FERC regulated entities.
Continue Reading FERC Acts on Income Tax Allowance and Implements the Tax Cuts and Jobs Act

On January 8, 2018, the Federal Energy Regulatory Commission (FERC or the Commission) issued an Order terminating the rulemaking proceeding that it established to address DOE Secretary Rick Perry’s proposed Grid Resiliency Pricing Rule.  The proposed rule directed FERC to provide special compensation to certain coal and nuclear power plants (for a full summary of the proposal, refer to Husch Blackwell’s client alert).  In response, FERC found that Secretary Perry’s proposal did not meet “clear and fundamental legal requirements[.]”  FERC stated that Comments from Regional Transmission Operators (RTOs) and Independent System Operators (ISOs) did not indicate that the grid is threatened by the retirement of coal and nuclear power plants.

FERC none-the-less emphasized the importance of grid reliability and resilience, and determined that it has consistently taken action to address the issue, including:  (i) extensive reliability planning and standard setting through NERC, (ii) examination of fuel assurance methods during the 2014 Polar Vortex, (iii) certain capacity market reforms, and (iv) coordination of wholesale gas and electricity market scheduling.  To continue its reliability work, FERC initiated a new proceeding in Docket No. AD18-7 “to specifically evaluate the resilience of the bulk power system in the regions operated by regional transmission organizations (RTO) and independent system operators (ISO).”   In the new proceeding, FERC directs each RTO and ISO to submit information on certain resilience issues and concerns identified by the Commission to enable it to examine holistically the resilience of the bulk power system.  FERC stated that this new proceeding will provide further information on whether further action is warranted.   …
Continue Reading FERC Rejects DOE Proposal for Special Compensation for Coal and Nuclear Generators

FERC Holds its First Meeting in Nearly Two Years with a Full Slate of Commissioners.

At the December 21, 2017 FERC open meeting, the first with the agency’s new Chairman, Kevin McIntyre and a full slate of Commissioners, several major new orders and policy initiatives were announced that are important to the energy industry, including initiating a more RTO-specific approach to fast-start resource pricing policies, new reporting requirements for cyber security incidents and a preliminary announcement of FERC’s intent to review the current pipeline certificate procedures.
Continue Reading FERC Off to a “Fast Start”

President-elect Trump made an array of energy-related campaign promises, and elevated several of those promises to priorities for his First 100 Days in office.  Many of the energy related priorities will require action by multiple Federal agencies, including the Department of Energy (DOE).  The Trump transition team has nominated Rick Perry for secretary of the DOE.  Among the energy-related priorities found in Trump’s First 100 Days agenda, two key policy items may fall within the purview of a DOE led by Perry, including:…
Continue Reading Rick Perry Nomination and Trump’s Energy Priorities

Logo courtesy of the Federal Energy Regulatory Commission
Logo courtesy of the Federal Energy Regulatory Commission

The Federal Energy Regulatory Commission (“FERC”), in a recent Notice of Inquiry (NOI), is exploring whether to revise its current approach to identifying and analyzing market power in the context of Federal Power Act Section 203 (utility mergers and acquisitions) and 205 (market based rate authorizations).  Currently, FERC uses separate methodologies when analyzing an entity’s market power when an entity seeks prior-approval of a merger or similar jurisdictional transaction under Section 203, and when an entity applies for authority to sell energy products in FERC-regulated wholesale energy markets under Section 205.  Through this NOI, FERC seeks comments on whether it should “harmonize” and “streamline” these two market-power analysis methods.
Continue Reading FERC Considers “Streamlining” Analysis of M&A Approval and MBR Authority