Washington Energy Update - August/September 2012

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In This Issue:

- Energy Highlights

- FERC Proposes to Substantially Amend Its Transmission-Capacity Allocation Policies

- Energy Game-Changer: Electric Storage Systems

- Getting Something for Nothing: FERC Office of Enforcement Alleges Market Manipulation in the ISO New England Demand Response Program

- China Initiates AD, CVD Investigations Into Solar-Grade Polysilicon Imports From the United States

- International Energy Regulators Discuss Challenges and Solutions in Energy Policy: Report on the 2012 Asia-Pacific Energy Regulatory Forum

Excerpt from FERC Proposes to Substantially Amend Its Transmission-Capacity Allocation Policies:

FERC recently issued a proposed policy statement that, if adopted, would provide merchant transmission developers with increased flexibility to pursue bilateral negotiations with potential customers and make it substantially easier for such developers to obtain negotiated rate authority from FERC. FERC also proposes to apply the new policy to non-incumbent, cost-based, participant-funded transmission developers, but not to incumbent transmission developers. Although FERC seeks to promote transmission development “while also…ensur[ing] transparency in the allocations of capacity…and, in turn, …ensur[ing] that transmission service is provided at rates, terms and conditions that are just and reasonable and not unduly discriminatory,” there are many crucial details that will have to be resolved either in a final policy statement or as FERC employs its new policy in specific cases in the future. Comments on the Proposed Policy Statement are due September 24, 2012.

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