Summary of FERC Meeting Agenda for June 2023

White & Case LLP

Below are summaries of the agenda items for the Federal Energy Regulatory Commission's open meeting to be held on June 15, 2023, pursuant to the sunshine notice released on June 8, 2023.

In this issue…

  • Electric Items
  • Gas Items
  • Hydro Items
  • Certificate Items

Electric

E-1 – Transmission System Planning Performance Requirements for Extreme Weather (Docket No. RM22-10-000). On June 16, 2022, the Commission issued a notice of proposed rulemaking (NOPR), where the final rule would direct the North American Electric Reliability Corporation (NERC), the Commission-certified Electric Reliability Organization, to submit modifications to the Commission within one year of the effective date of the final rule to Reliability Standard TPL-001-5.1 (Transmission System Planning Performance Requirements) to address reliability concerns pertaining to transmission system planning for extreme heat and cold weather events that impact the reliable operations of the Bulk-Power System. Specifically, the Commission proposed to direct NERC to develop modifications to Reliability Standard TPL-001-5.1 to require: development of benchmark planning cases based on information such as major prior extreme heat and cold weather events or future meteorological projections; planning for extreme heat and cold events using steady state and transient stability analyses expanded to cover a range of extreme weather scenarios including the expected resource mix's availability during extreme weather conditions, and including the broad area impacts of extreme weather; and corrective action plans that include mitigation for any instances where performance requirements for extreme heat and cold events are not met. Over 35 market participants filed comments between June 27, 2022 and August 31, 2022. Agenda item E-1 may be an order on the NOPR.

E-2 – One-Time Informational Reports on Extreme Weather Vulnerability Assessments Climate Change, Extreme Weather, and Electric System Reliability (Docket Nos. RM22-16-000, AD21-13-000). On June 16, 2022, the Commission issued a NOPR to direct transmission providers to submit onetime informational reports describing their current or planned policies and processes for conducting extreme weather vulnerability assessments. The Commission proposed to define extreme weather vulnerability assessments under the NOPR as analyses that identify where and under what conditions jurisdictional transmission assets and operations are at risk from the impacts of extreme weather events, how those risks will manifest themselves, and what the consequences will be for system operations. Specifically, the Commission proposed to require transmission providers to submit a onetime informational report on how they establish a scope for their extreme weather vulnerability assessments, develop inputs, identify vulnerabilities and determine exposure to extreme weather hazards, estimate the costs of impacts, and develop mitigation measures to address extreme weather risks. Over 35 market participants filed comments between June 27, 2022 and August 31, 2022. Agenda item E-2 may be an order on the NOPR.

E-3 – Credit-Related Information Sharing in Organized Wholesale Electric Markets (Docket No. RM22-13-000). On July 28, 2022, the Commission issued a NOPR that would allow electric power market operators to share credit-related information among themselves so operators can more accurately assess market participants' credit risks. The NOPR would require market operators to adopt tariff provisions that permit the sharing of credit-related information among market operators in hopes to improve the accuracy of credit exposure and risk assessments across multiple electric power markets. The NOPR would also enable market operators to respond to credit events more quickly and effectively, thereby minimizing the overall risks of unexpected defaults by market participants. The market operators' tariffs currently contain confidentiality provisions that may act as barriers to such information sharing. Over 10 market participants filed comments between August 8, 2022 and November 8, 2022. Agenda item E-3 may be an order on the NOPR.

E-4 – ISO New England Inc. (Docket Nos. ER22-2467-000, ER22-2468-000). On July 22, 2022, ISO New England Inc. (ISO-NE); New England Hydro-Transmission Electric Company, Inc.; New England Hydro-Transmission Corporation; New England Electric Transmission Corporation; and Vermont Electric Transmission Company (collectively, the Asset Owners); and the public utilities that provide transmission service under Schedule 20A to the ISO OATT (the Schedule 20A Service Providers) (collectively, the Filing Parties) submitted revisions to the HVDC Transmission Operating Agreement (the HVDC TOA) among ISO-NE and the Asset Owners and revisions to the Schedule 20A-Common to the ISO OATT to comply with the Commission's Order No. 881 on managing transmission line ratings with respect to the high-voltage, direct current transmission facilities interconnecting New England and Québec known as the Phase I/II HVDC-TF. On August 2, 2022, parties submitted a letter to clarify which entities should be listed as the filing parties in Docket No. ER22-2467, for revisions made to the HVDC TOA, is as follows: (i) ISO New England Inc.; (ii) New England Hydro-Transmission Electric Company, Inc.; (iii) New England Hydro-Transmission Corporation; (iv) New England Electric Transmission Corporation; and (v) Vermont Electric Transmission Company (VETCO). Agenda item E-4 may be an order on the HVDC TOA revisions.

E-5 – ISO New England Inc. (Docket No. ER22-2357-000). On July 12, 2022, ISO New England Inc. (ISO-NE) submitted for filing a compliance filing in accordance with Commission Order Nos. 881 and 881-A regarding Managing Transmission Line Ratings. Agenda item E-5 may be an order relating to ISO-NE's Order No. 881 compliance filing. 

E-6 – Midcontinent Independent System Operator, Inc. (Docket No. ER22-2363-000). On July 12, 2022, Midcontinent Independent System Operator, Inc. (MISO) submitted for filing a compliance filing in accordance with Commission Order Nos. 881 and 881-A regarding Managing Transmission Line Ratings. Several interested parties and stakeholders intervened and filed comments with respect to MISO's July 12 filing. Agenda item E-6 may be an order relating to MISO's Order No. 881 compliance filing. 

E-7 – Golden Spread Electric Cooperative, Inc. (Docket No. ER22-2161-001). On June 22, 2022, Golden Spread Electric Cooperative, Inc. (Golden Spread) submitted for filing a compliance filing in accordance with Commission Order Nos. 881 and 881-A regarding Managing Transmission Line Ratings. On February 3, 2023, Golden Spread submitted a compliance filing with the proposed effective date for its Order No. 881 tariff revisions to be July 12, 2025. Agenda item E-7 may be an order relating to Golden Spread's Order No. 881 compliance filings.

E-8 – Alabama Power Company, Georgia Power Company, and Mississippi Power Company (Docket No. ER22-2341-000). On July 12, 2022, Alabama Power Company, Georgia Power Company, and Mississippi Power Company (collectively, Southern Companies) submitted for filing a compliance filing in accordance with Commission Order Nos. 881 and 881-A regarding Managing Transmission Line Ratings. Agenda item E-8 may be an order relating to Southern Companies' Order No. 881 compliance filing.

E-9 – Puget Sound Energy, Inc. (Docket No. ER22-2361-000). On July 12, 2022, Puget Sound Energy, Inc. (PSE) submitted a compliance filing pursuant to the directives furnished by the Commission in Order Nos. 881 and 881-A. In accordance with the Orders, PSE proposed to modify its existing Open Access Transmission Tariff (OATT) to incorporate by reference the new pro forma attachment to its OATT, entitled Transmission Line Ratings, to implement the utilization of ambient-adjusted ratings as the basis for evaluating near-term transmission service in order to improve the accuracy of such line ratings. Agenda item E-9 may be an order on the proposed OATT revisions stemming from compliance with Order No. 881 by PSE.

E-10 – Idaho Power Company (Docket No. ER22-2292-000). On July 6, 2022, Idaho Power Company (Idaho Power) submitted a compliance filing pursuant to the directives furnished by the Commission in Order Nos. 881 and 881-A. In accordance with the Orders, Idaho Power proposed to modify its existing OATT to incorporate by reference the new pro forma attachment to its OATT, entitled Transmission Line Ratings, to implement the utilization of ambient-adjusted ratings as the basis for evaluating near-term transmission service in order to improve the accuracy of such line ratings. Agenda item E-10 may be an order on the proposed OATT revisions stemming from compliance with Order No. 881 by Idaho Power.

E-11 – Public Service Company of New Mexico (Docket No. ER22-2335-000). On July 11, 2022, Public Service Company of New Mexico (PNM) submitted a compliance filing pursuant to the directives furnished by the Commission in Order Nos. 881 and 881-A. In accordance with the Orders, PNM proposed to modify its existing OATT to incorporate by reference the new pro forma attachment to its OATT, entitled Transmission Line Ratings, to implement the utilization of ambient-adjusted ratings as the basis for evaluating near-term transmission service in order to improve the accuracy of such line ratings. Agenda item E-11 may be an order on the proposed OATT revisions stemming from compliance with Order No. 881 by PNM.

E-12 – Coalition of Eastside Neighborhoods for Sensible Energy v. Puget Sound Energy, Inc. (Docket No. EL23-23-001). On January 17, 2023, the Coalition of Eastside Neighborhoods for Sensible Energy (CENSE) filed a formal complaint against Puget Sound Energy, Inc. (PSE), alleging that PSE has an obligation, under NERC rules, particularly NERC Reliability Standard TPL-001, to conduct transmission planning studies relating to the Energize Eastside project, a proposed double-circuit 230 kV intrastate transmission line. In prior proceedings brought by CENSE, the Commission determined that the Energize Eastside transmission project had not been formally included in any regional transmission planning process and therefore the Commission could not exercise jurisdiction over the project and deferred to Washington state. On February 6, 2023, PSE filed an answer and motion to dismiss the formal complaint, stating that it is in compliance with the relevant NERC Reliability Standards, Attachment K of its OATT, and that CENSE did not sufficiently satisfy the due process provisions in bringing forward a formal complaint. Agenda item E-12 may be an order on the formal complaint by CENSE.

E-13 – NextEra Energy Seabrook, LLC (Docket No. EL21-3-001); NECEC Transmission LLC and Avangrid, Inc. v. NextEra Energy Resources, LLC and NextEra Seabrook, LLC (Docket No. EL21-6-001); ISO New England Inc. (Docket No. EL21-94-000). On October 5, 2020, NextEra Energy Seabrook, LLC (Seabrook) filed a petition for declaratory order to resolve an ongoing dispute with the New England Clean Energy Connect project by NECEC Transmission LLC and Avangrid, Inc. (collectively, NECEC). The project is a proposed 320 kV HVDC transmission line from the Quebec-Maine border to a new converter station in Maine, which would deliver up to 1,200 megawatts of hydroelectric energy from Quebec into the ISO New England (ISO-NE) footprint. In the petition, Seabrook requested that the Commission clarify its jurisdictional obligations related to the project, declare that it is not required to incur a financial loss to upgrade certain equipment for the sole benefit of NECEC, establish good utility practice for replacement of the nuclear plant generation breaker relative to the use of such term in a facilities agreement between itself and NECEC, and affirm that Seabrook is not liable for damages rendered by the service provided to NECEC under a facilities agreement. According to the petition, the principal issue under dispute is two areas of costs that would not be incurred directly by Seabrook but for the work necessary to accommodate the NECEC project, such as opportunity costs and other costs associated with the work including Pay for Performance penalties, legal expenditures, and incremental labor and operational expenses. Seabrook asserted that ISO-NE determined that the NECEC project is an elective transmission project that was not mandated by ISO-NE and that, if the project were to be built, Seabrook would be an “affected party” resulting in the need to upgrade its generation breaker. In the ensuing comment period, a number of stakeholders filed motions to intervene. On November 4, 2020, NECEC submitted a protest to the petition for declaratory order. In the protest, NECEC stated that Seabrook is attempting to circumvent an ongoing proceeding in Docket No. EL21-6, whereby NECEC brought a complaint against Seabrook. NECEC alleged that Seabrook is in violation of the principles of the ISO-NE Tariff by delaying the project unless it pays a “large and unknowable sum of money.” NECEC requested that the Commission focus solely on its complaint and dismiss the Seabrook petition, as well as direct Seabrook to enter into the affected system agreement pursuant to its authority under section 206 of the Federal Power Act (FPA). The parties submitted additional answers in the respective proceedings. On February 1, 2023, the Commission issued an order denying the complaint by NECEC in part, granting the complaint by NECEC in part, and dismissing the petition for declaratory order by Seabrook. In the order, the Commission directed Seabrook to replace the generation breaker pursuant to its obligations under the Seabrook Large Generator Interconnection Agreement (LGIA) and good utility practice. Additionally, the Commission found that Seabrook should not be able to recover certain costs from NECEC, such as opportunity and legal costs. On April 6, 2023, Seabrook filed a Petition for Review of the February 1 order in the United States Court of Appeals for the District of Columbia Circuit under Case No. 23-1094. Agenda item E-13 may be an order responsive to the Petition for Review relating to the issuance of the February 1 order resolving certain matters in the respective Commission proceedings.

Gas

G-1 – Northern Indiana Public Service Company LLC (Docket No. CP23-5-000). On October 19, 2022, Northern Indiana Public Service Company LLC (NIPSCO) filed an application (Application) with the Commission seeking a limited jurisdiction certificate of public convenience and necessity pursuant to Section 7(c) of the Natural Gas Act (NGA) and Section 284.224 of the Commission's regulations. NIPSCO requests such certificate in order to transport and sell natural gas in interstate commerce as though it were an intrastate pipeline as defined in Section 311 of the Natural Gas Policy Act. According to NIPSCO, granting the certificate would allow NIPSCO to meet the present and future needs of AMP Americas II, LLC and other potential supplies of renewable natural gas. On October 28, 2022, Commission staff issued an Environmental Assessment Report, concluding that the Application qualifies as a categorical exclusion under the Commission's regulations. Agenda item G-1 may be an order on the Application.

Hydro

H-1 – Erie Boulevard Hydropower, L.P. (Docket No. P-2701-065). On February 26, 2021, Erie Boulevard Hydropower, L.P. (Erie) filed an application for a license for the West Canada Creek Hydroelectric Project. On March 9, 2022, Erie filed a request for water quality certification for the project under section 401(a)(1) of the Clean Water Act (CWA) with the New York State Department of Environmental Conservation (New York DEC). On March 7, 2023, New York DEC denied certification for the project, in part stating that since the Commission had not yet issued a final environmental assessment for the project, a review of the water quality requirements could not be undertaken. On March 16, 2023, the Commission issued a notice of denial of water quality certification pursuant to the New York DEC order. On April 17, 2023, Erie submitted a request for rehearing of the March 16 order. Agenda item H-1 may be an order on the rehearing request.

H-2 – Eagle Crest Energy Company (Docket No. P-13123-032). On February 15, 2023, Eagle Crest Energy Company (Eagle Crest) submitted a request for stay of the commencement and completion-of-construction deadlines in accordance with its license for the new Eagle Mountain Project, FERC Project No. 13123. In the request, Eagle Crest stated that construction has been delayed due to an ongoing right-of-way dispute with the Bureau of Land Management. As a result, Eagle Crest requested that the Commission grant a four-year stay of the deadlines originally imposed in the license approval for the project. Agenda item H-2 may be an order on the request for stay.

H-3 – Fairlawn Hydroelectric Company, LLC (Docket No. P-12715-014). On September 30, 2022, Fairlawn Hydroelectric Company, LLC (Fairlawn) submitted a request for stay of the commencement and completion-of-construction deadlines in accordance with its license for the new Jennings Randolph Project, FERC Project No. 12715. In the request, Fairlawn stated that the Army Corps of Engineers (the Corps) will be using new federal appropriations vested by the US Congress to perform a Tainter gate rehabilitation (TGR) on the Jennings Randolph Dam, deemed as necessary to address dam safety issues. Consequently, the Corps notified Fairlawn that the TGR will be completed by December 2026 and cannot be conducted simultaneously with construction of the project. Agenda item H-3 may be an order on the request for stay.

H-4 – Hudson River-Black River Regulating District, Erie Boulevard Hydropower, L.P. (Docket Nos. P-2318-053, P-12252-035, P-2318-054, P-12252-036). On January 25, 2023, Hudson River-Black River Regulating District (HRBR) submitted a petition for declaratory order against Erie Boulevard Hydropower, L.P. (Erie). In the petition, HRBR requested that the Commission resolve the ongoing dispute as to whether Erie must continue to maintain a necessary property interest in the head created, owned, and controlled by HRBR due to construction of the Conklingville Dam, part of the Great Sacandaga Lake Project, FERC Project No. 12252. The dispute has arisen regarding the obligation of Erie to pay reasonable compensation for use of certain HRBR assets in the operation of the E.J. West Project, owned and operated by Erie. On March 6, 2023, Erie submitted an answer to the petition, stating that the Commission should determine that it is not obligated to compensate HRBR for the charges it assesses under the Reservoir Operating Agreement between the parties that will expire on June 30, 2023. Agenda item H-4 may be an order on the petition for declaratory order.

Certificates

C-1 – Equitrans, L.P. (Docket No. CP22-44-000). On January 28, 2022, Equitrans, L.P. (Equitrans) filed an application (Application) with the Commission seeking authorization under Section 7 of the Natural Gas Act (NGA) to construct and operate certain natural gas transmission pipeline and aboveground facilities located in Greene County, Pennsylvania; Wetzel County, West Virginia; and Monroe County, Ohio (Ohio Valley Connector Project or Project). Specifically, Equitrans proposes to acquire and operate the non-jurisdictional Cygrymus Compressor Station – located in Greene County, Pennsylvania – and install two new turbines, to install one additional compressor unit each at the existing Corona Compressor Station in Wetzel County, West Virginia and at the existing Plasma Compressor Station in Monroe County, Ohio, and to construct approximately 5.5 miles of pipeline and ancillary facilities in different locations related to the compressor stations. According to the Application, the Project will allow Equitrans' to expand its existing Ohio Valley Connector assets to deliver approximately 350,000 dekatherms per day of increment al firm natural gas to the expanding mid-continent and Gulf Coast markets along the Rockies Express and Rover pipeline systems. Equitrans also asserts that the Project will create new transportation paths and provide long-term reliability. Commission staff issued a draft Environmental Impact Statement (EIS) for the Application on September 30, 2022 and a final EIS for the Application on January 20, 2023. Commission staff concluded in the final EIS that any adverse environmental impacts from construction and operation of the Project would not be significant, with the exception of climate change impacts, which the final EIS did not characterize as significant or insignificant. Commission staff issued an Environmental Assessment Report, concluding that the construction and operation of the Ohio Valley Connector Project would not result in significant adverse impacts, with the exception of climate change impacts, which are not characterized in the EIS as significant or insignificant. Agenda item C-1 may be an order on the Application.

C-2 – Stingray Pipeline Company, L.L.C. (Docket Nos. CP20-528-000, CP20-528-001, CP20-529-000). On September 25, 2020, Stingray Pipeline Company, LLC (Stingray) filed an abbreviated application (Application) with the Commission seeking authorization pursuant to Section 7(b) of the Natural Gas Act (NGA) and Sections 157.7 and 157.18 of the Commission's regulations, to abandon by sale to Triton Gathering LLC (Triton) the WC 509 System, consisting of certain facilities owned and operated by Stingray located in Federal waters offshore Louisiana in the Gulf of Mexico. On November 5, 2020, Commission staff issued an Environmental Assessment Report, concluding that the Application would not adversely affect the rates of Stingray's shippers and that the proposed abandonment of facilities by sale involves no ground disturbance and qualifies as a categorical exclusion under the Commission's regulations. On December 11, 2022, Stingray filed an amendment to its Application, requesting authorization to abandon by removal or in place, rather than by sale to Triton, those WC 509 System facilities that were damaged and/or destroyed after the filing of the Application due to Hurricane Delta in October 2020. Specifically, Stingray seeks authorization to: (1) abandon in place its 14.98-mile-long, 24-inch-diameter Segment 4813 pipeline, and (2) abandon by removal its 50 percent ownership interest in the High Island Block A330 Platform and related equipment, all located in Federal waters offshore Louisiana. On December 11, 2020, Commission staff issued another Environmental Assessment Report to account for Stingray's amended Application, in which they continued to conclude that the proposed abandonment of facilities by sale involves no ground disturbance and qualifies as a categorical exclusion under the Commission's regulations. Agenda item C-2 may be an order on the Application (as amended).

C-3 – NEXUS Gas Transmission, LLC (Docket No. CP16-22-007). On August 25, 2017, the Commission issued an order (Order) granting NEXUS Gas Transmission, LLC (NEXUS) authorization under Section 7 of the Natural Gas Act (NGA) to construct and operate the NEXUS Gas Transmission Project (Project). The Project consists of about 257.5 miles of new 36-inch-diameter pipeline and associated facilities, including about 209.4 miles of new pipeline in Ohio and about 48.1 miles of new pipeline in Michigan; four new natural gas-fired compressor stations; and associated facilities and aboveground appurtenances. On October 10, 2018, Commission staff approved in-service of the Project. On August 23-24, 2022, Commission staff performed a restoration inspection of the Project, per the request of the FERC Project Manager. The purpose of the inspection was to determine NEXUS's compliance with the environmental conditions of the Commission's Order and to inspect the restoration conditions of the pipeline right-of-way. In particular, the inspection focused on reviewing the conditions of the certain individual properties where landowners and their representatives have raised issues with the Commission. No instances of noncompliance or problem areas were observed during such inspection. Upon completion of the inspection, Commission staff issued an inspection report describing the conditions observed on the right-of-way, describing the landowner concerns, and clarifying the need for additional restoration efforts for NEXUS to complete. On December 19, 2022, Commission staff issued an environmental compliance information request to NEXUS, requesting information that the Commission has explained is necessary to ensure that the corrective actions identified in the inspection report are carried out in a timely manner and to ensure that the scope of work comprehensively addresses the restoration problems identified by the Commission staff. On January 18, 2023, NEUX submitted its initial response, as supplement on February 24, 2023, which included updates on communications with landowners, an anticipated mobilization and completion date, and a request for review and approval of NEXUS's restoration/remediation plan. On March 16, 2023, Commission staff issued a deleted letter order (Delegated Order) approving NEXUS's restoration/remediation plan for certain landowner tracts only, while also providing that NEXUS may not implement the restoration/remediation actions proposed for the remaining landowner tracts; Commission staff explained that they continue to solicit and review information from affected stakeholders while considering the adequacy of the remaining restoration/remediation plans. On March 23, 2023, Central Land Consulting, LLC (CLC) and Robert Wensink, owner of Wensink Seed Farms, requested rehearing of the Delegated Order (Rehearing Request). Specifically, the Rehearing Request asserts that the Delegated Order erred in finding that NEXUS's proposed restoration/remediation plan was sufficient to address legitimate environmental issues on Mr. Wensink's tracts, and that the Commission must order NEXUS to undertake further corrective action to remove excavated bedrock and construction debris buried by NEXUS throughout Mr. Wensink's tracts. On April 24, 2023, the Commission issued a notice of denial of rehearing by operation of law with respect to the Rehearing Request while providing that the Commission would address the Rehearing Request in a future order. Agenda item C-3 may be an order on the Rehearing Request.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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