FERC Approves Southwest Power Pool Proposal to Systematically Curtail Wind and Solar Resources

by Perkins Coie

On September 20, 2012, the Federal Energy Regulatory Commission (FERC) issued an order conditionally accepting a proposal by Southwest Power Pool, Inc. (SPP) to begin systematic and automated curtailments of Non-Dispatchable Resources, including electric generation from wind and solar resources, during periods of congestion.  The order is designed to address the substantial increases in Non-Dispatchable Resources that have been experienced since the inception of the Energy Imbalance Service (EIS) market, as well as projections that an additional 4,000 MW of Non-Dispatchable Resources will be added to SPP’s system over the next three years.  Under the new market rules, Non-Dispatchable Resources will be curtailed in SPP’s EIS market based on their existing transmission service priority.  That priority is based on whether the Non-Dispatchable Resource is (i) scheduling against a transmission reservation, (ii) a Qualifying Facility (QF) exercising its rights under the Public Utility Regulatory Policies Act (PURPA) to deliver its net output to its host utility, or (iii) using unscheduled service.  Security-constrained economic dispatch is to be exhausted before any Non-Dispatchable Resources are curtailed.

QF output sold under PURPA will be curtailed proportionately and on a basis equivalent to firm service.  In other words, such output will be curtailed only during a North American Electric Reliability Corporation Transmission Loading Relief (TLR) level 5 event or activation of a constraint in SPP’s Market Operating System (MOS), and only after all other lower-priority service has been curtailed to relieve congestion.  QFs will not be subject to Uninstructed Deviation Charges if they do not participate in the EIS Market (these are QFs that exercised their rights under PURPA to deliver all of their net output to their host utilities and that did not register in the EIS Market but instead were involuntarily registered by SPP).  All other output from Non-Dispatchable Resources will be subject to Uninstructed Deviation Charges if such Non-Dispatchable Resources fail to comply with curtailment instructions.

The new automated curtailment rules will become effective October 15, 2012 for all Non-Dispatchable Resources that become commercially operable on or after that date.  For Non-Dispatchable Resources operable before that date, SPP is required to undertake a further stakeholder process in order to develop a revised proposal that must be filed with FERC and will become effective on September 20, 2013.  This difference in treatment stems from FERC’s findings that (i) SPP failed to justify applying its proposal to existing Non-Dispatchable Resources, (ii) until now, manual curtailment instructions have typically been issued only to the Non-Dispatchable Resource making the largest contribution to a constraint, not to all Non-Dispatchable Resources, and (iii) there may be older Non-Dispatchable Resources that are unable to comply with the new rules.

FERC further requires SPP to modify its tariff to provide that Non-Dispatchable Resources with point-to-point transmission service rights receive a TLR level 5 curtailment priority up to the amount of firm transmission service reserved.  In addition, SPP must modify the tariff to clarify that Non-Dispatchable Resources that are designated network resources will receive such priority up to the level of output designated for such Non-Dispatchable Resources, provided that the aggregate generation from designated network resources for a particular network load does not exceed the associated network load plus losses.

The order rejects calls to require SPP to implement 15-minute scheduling or “closer to real-time adjustments” to scheduling, noting that FERC Order No. 764 gives Regional Transmission Organizations until June 22, 2013 to implement 15-minute scheduling capability.  The order does, however, direct SPP to address in its compliance filing how its treatment of both existing and new Non-Dispatchable Resources will work within the Integrated Marketplace proposed by SPP in FERC Docket No. ER12-1179-000.

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.

© Perkins Coie | Attorney Advertising

Written by:

Perkins Coie

Perkins Coie on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
Privacy Policy (Updated: October 8, 2015):

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.


JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at info@jdsupra.com. In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at: info@jdsupra.com.

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.