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FERC Takes Final Action on Backstop Transmission Siting Rule

Earlier this year, the Federal Energy Regulatory Commission (FERC or the Commission) issued Order 1977 to address its limited backstop siting authority for electric transmission lines. On October 17, 2024, FERC issued Order...more

DC Circuit Upholds Cost-Causation Principle

The DC Circuit has affirmed FERC’s application of the “cost causation” principle to prevent a public utility (the Utility) from allocating costs for facilities to customers that did not benefit from the facilities. The...more

FERC Approves Potential Reduction of Stakeholder Input in Reliability Standard Development

FERC recently issued an order approving revisions to the North American Electric Reliability Corporation (NERC) Rules of Procedures to modify the rules for developing mandatory reliability standards. These changes, reflected...more

NERC to Develop Inverter-Based Resources Standards

In 2022, FERC began issuing directives aimed at ensuring that the reliability of the bulk-power system is protected from potential risks posed by the growing number of inverter-based resources (IBRs) connected to the electric...more

11/30/2023  /  Electricity , Energy Sector , FERC , NERC

FERC Approves Rate Incentives for Cybersecurity Investments

FERC has issued its final rule paving the way for incentive-based rate treatment for electric utilities that make certain voluntary cybersecurity investments. As we first noted in 2020 when describing the proposed rule, the...more

Registered Entities: Expect a Significant Increase in NERC’s Focus on Physical Security

There are no unimportant North American Electric Reliability Corporation (NERC) reliability standards, but from time to time, NERC and the Regional Entities (Regions) place greater emphasis on certain reliability standards in...more

FERC Orders Increased Reliability Regulation for Renewables

FERC issued three orders focused on increasing regulations for inverter-based resources (IBRs) in fulfillment of one of its primary goals to protect the reliability of the bulk-power system. FERC ensures this reliability...more

FERC Holds Technical Conference on Financial Assurance Measures for Hydroelectric Project

FERC recently held a Staff-led technical conference to discuss whether, and if so, how, the Commission should require additional financial assurance mechanisms in the licenses and other authorizations it issues for...more

FERC Issues Penalty for Hydro License Violation

As an example of its renewed focus on dam safety, FERC recently issued an order assessing a $600,000 civil penalty to Ampersand Cranberry Lake Hydro LLC for a violation of Ampersand’s hydro license for the 500 kW Cranberry...more

FERC Approves Proposed Flowback of Non-Utility Revenues and Accounting Treatment

On March 24, FERC granted a public utility’s petition for declaratory order regarding the treatment of a master license agreement for communications equipment under the public utility’s previously approved revenue sharing...more

North American Electric Reliability Corporation Files 2022 Standards Report

The North American Electric Reliability Corporation (NERC) filed its 2022 NERC Standards Report, Status and Timetable for Addressing Regulatory Directives summarizing the progress made and plans for addressing the reliability...more

Understanding Regulatory and Environmental Challenges to Offshore Energy Projects

As renewable energy grows in popularity, offshore power generation has been bolstered by recent federal and state initiatives that support the development and integration of offshore renewables to achieve emission reduction...more

FERC Finalizes Hydropower Dam Safety Requirements

The Federal Energy Regulatory Commission recently issued a final rule, Order No. 880, revising its hydropower project inspection and safety regulations. The updates revise part 12 of FERC’s regulations and conclude an...more

FERC Further Delays Implementation of MBR Database Reporting Requirements

FERC recently issued a notice of extension of time further extending, by three months, the compliance dates for FERC’s new market-based rate (MBR) relationship database filing requirements under Order No. 860. This extension...more

FERC Proposes Penalty for Hydro License Violation

FERC recently issued an order to show cause and notice of proposed penalty to Ampersand Cranberry Lake Hydro LLC for a violation of Ampersand’s hydro license for the Cranberry Lake Project No. 9658 (Cranberry Lake Project)....more

NARUC Submits Nominees to Joint Federal-State Task Force

The National Association of Regulatory Utility Commissioners (NARUC) has submitted 10 nominees to FERC to serve on the newly formed Joint Federal-State Task Force on Electric Transmission. Last month in Docket No. AD21-15,...more

FERC Rulemaking to Reform Regional Transmission Planning and Cost Allocation

FERC issued an advance notice of proposed rulemaking (ANOPR) in Docket No. RM21-17, seeking comment on the potential need for reform of Commission regulations necessary to improve regional transmission planning and cost...more

FERC Allows Cooperatives to Share QF Purchase Obligation

FERC granted a partial waiver requested by a generation and transmission service cooperative (Petitioner) of certain obligations under FERC’s regulations implementing Section 210 of the Public Utility Regulatory Act of 1978...more

FERC Issues Order Clarifying Affiliate Relations for Institutional Investors Under FPA Section 205

On March 18, FERC issued a highly anticipated order denying the petition for declaratory order filed by several electric public utilities addressing the extent to which equity ownership of multiple utility holding companies...more

FERC Issues License to Groundbreaking Wave Energy Testing Facility

FERC issued an original license for a period of 25 years, pursuant to Part I of the Federal Power Act, to Oregon State University (OSU) to construct, operate, and maintain the proposed PacWave South Hydrokinetic Project No....more

FERC to Examine Climate Change Threat to Electric Reliability

FERC announced on February 22 that it will open a new proceeding to examine the threats of climate change and extreme weather to electric reliability. The investigation will assess how grid operators prepare for and respond...more

FERC Sets Aside Prior Order on NYISO Buyer-Side Mitigation Rules

FERC has issued an order setting aside in part its prior order on New York Independent System Operator, Inc.’s (NYISO’s) buyer-side market power mitigation rules by reversing its decision not to exempt payments received under...more

FERC Clarifies Order on State-Directed Default Service Auctions in PJM

FERC has issued an order revising its prior order on PJM’s Minimum Offer Price Rule (MOPR) by vacating a footnote that suggested the New Jersey Basic Generation Service default service auction—and by extension other state...more

FERC Issues Notice of Inquiry on Financial Assurance Measures for Hydroelectric Projects

FERC has issued a notice of inquiry inviting comments on potential changes to its regulations requiring financial assurance measures in licenses and other authorizations for hydroelectric projects. As of December 2020, FERC...more

FERC Amends Definition of Useful Thermal Energy Output

FERC has issued a final rule, Order No. 874, expanding the eligibility criteria for Qualifying Facilities (QFs) as defined under the Public Utility Regulatory Policies Act of 1978 (PURPA) to enable certain fuel cell–based...more

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