Bud Earley

Bud Earley

Bud Earley is a non-lawyer member of Covington’s Energy practice with over 37 years of experience in the energy industry.  Prior to joining Covington, Mr. Earley served for over 30 years in various staff positions at the Federal Energy Regulatory Commission (FERC).  While at the FERC, Mr. Earley was instrumental in developing and applying policies regarding the transition of the electric power industry to competition, including policies regarding independent power producers, transmission access, standard generator interconnection procedures, organized electricity markets, mergers and market-based rates.  Working with Covington teams representing investment firms, utilities, independent power producers, project developers, customers, marketers and US and international energy companies, Mr. Earley provides analysis and advice on a wide range of federal and state energy regulatory issues, including transaction and rate issues, regional transmission organization (RTO) tariffs and rules, interconnection, retail choice and demand response for electricity customers, and licensing of natural gas pipelines and hydroelectric facilities.

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FERC Requests More Comments on Grid Service Proposal

In November 2016, FERC issued a Notice of Proposed Rulemaking (NOPR) that would require new generating facilities to install and operate equipment that provides primary frequency response service to the grid.   Based on some of the comments received on the NOPR, FERC issued a request for supplemental comments. The reliable operation of the alternating current … Continue Reading

FERC IS BACK AND FACES A FULL PLATE OF ELECTRICITY ISSUES (Volume 3)

This is the third and final of three posts on this blog providing short summaries of the generic electricity policy initiatives already teed up and awaiting possible action by the newly-constituted FERC.  Together, these three posts describe initiatives that address fundamental market and resource issues spanning a broad range of FERC’s electricity authorities. Today’s post … Continue Reading

FERC IS BACK AND FACES A FULL PLATE OF ELECTRICITY ISSUES (Volume 2)

This is the second post of three on this blog providing short summaries of the generic electricity policy initiatives already teed up and awaiting possible action by the newly-constituted FERC.  Together, these three posts describe initiatives that address fundamental market and resource issues spanning a broad range of FERC’s electricity authorities. Today’s post summarizes initiatives … Continue Reading

FERC Gets Comments on Electric Storage Proposal

Electric storage resources such as batteries and flywheels are shaping the grid of the future. The ability of these resources to absorb and discharge electricity gives the resources operational flexibility that allows them to provide a variety of services to help keep the power grid in balance.  Energy storage installations in the U.S. grew 100% in … Continue Reading

NY ISO Outlines Steps For Integrating Distributed Resources

The NY Independent System Operator recently issued a plan for addressing the nuts-and-bolts issues associated with integrating distributed energy resources (DERs) into the wholesale electricity market.  The NYISO says its Distributed Energy Resources Roadmap for New York’s Wholesale Electricity Markets is “the first step in building (the) grid of the future” and seamless transition “from a … Continue Reading

FERC Addresses Electric Storage Complaint

A previous post on this blog reported a complaint by an electric storage resource owner that FERC must reform a Regional Transmission Organization’s (RTO’s) tariff with respect to the treatment of storage batteries.  In response, FERC issued an Order that requires the RTO to adopt rules that allow storage resources to participate in all of … Continue Reading

FERC Clarifies Cost Recovery Flexibility for Electric Storage Resources

As part of an ongoing effort to address issues raised by, and encourage the entry of, distributed energy resources, the Federal Energy Regulatory Commission (FERC) last week issued a Policy Statement clarifying the flexibility electric storage resources have regarding rate designs to recover their costs.  FERC earlier proposed rules to remove barriers to the participation of storage … Continue Reading

FERC Proposes Requiring New Generators to Provide A Grid Support Service

One factor driving the grid of the future is the change in the nation’s electric generator resource mix, such as the retirement of traditional baseload generation and an increasing proportion of variable energy resources, such as wind and solar.  This evolution has raised concern that the capability to provide “primary frequency response,” a critical grid … Continue Reading

FERC Proposes Rules to Remove Barriers to Electric Storage and Other Distributed Resources

Electricity storage resources are shaping the grid of the future.  Large-scale batteries and flywheels are now able to provide services to grid operators to help keep the bulk power system in balance.  Electric storage resources’ ability to absorb and discharge electricity provides them with significant operational flexibility, and they can be designed to provide a … Continue Reading

FERC Considering Changes to Standards of Review for Acquisitions and Mergers

The Federal Energy Regulatory Commission (FERC) recently launched an initiative that could result in significant changes to the standards used for analyzing whether mergers and acquisitions are in the public interest.  In a September 22, 2016 Notice of Inquiry (NOI), FERC identified several broad areas in which its current policies may need reform, made a … Continue Reading

FERC Outlines Its Role in Implementing EPA’s Clean Power Plan

Earlier this year, FERC held four technical conferences to discuss the implications of state, regional and/or federal plans for compliance with EPA’s proposed Clean Power Plan (CPP) rule to set carbon emission limits for existing electricity generating units.  A major issue raised was the impact of the CPP on electric grid reliability as coal-fired generators … Continue Reading

FERC Staff to Measure Grid Investment Effectiveness

The Department of Energy recently released a Quadrennial Energy Review that identified a pressing need for new electricity transmission facilities, among other infrastructure issues.  Encouraging new transmission investment has also been a decade-long priority policy goal of FERC reflected in the Energy Policy Act of 2005 and FERC’s seminal Order No. 1000.  In furtherance of this … Continue Reading

The Impact of Distributed Generation On Electric Utilities: How Big, How Likely and How Soon?

Technological advances in distributed generation and battery storage and their consequent falling costs have the potential to significantly change the electric utility business model and regulatory policies.  While change seems likely, there are varying views on its scope, probability and timing.  Two are presented here. One perspective is that fundamental changes in the way electricity … Continue Reading

Transformative Power Technologies: Do We Need Regulation 2.0?

As discussed in a previous post, new technologies — such as distributed generation, electricity storage, and digital control and communications — are making steady inroads toward transforming the traditional role of electric utilities and their relationship to customers.  The future transformed utility is sometimes referred to as “Utility 2.0.”  While integrating new technologies into the … Continue Reading

Evolving Role of Utilities: Indicators That New Power Technologies May Be Transformative

Many forces are converging to focus the debate on the evolving role of utilities, and events and trends are being closely watched by utilities, regulators and policymakers.  Just in the last week or so, a few developments indicate that new technologies are likely to be transformative. On the innovation front, the Pacific Northwest National Laboratory … Continue Reading

Some Light Shed on FERC’s Role in EPA’s Clean Power Plan

Amid concerns regarding the impact on reliability of EPA’s proposed Clean Power Plan (“CPP”), FERC scheduled a series of technical conferences to discuss the impacts of state, regional and/or federal plans for compliance with EPA’s proposed rule.  Such plans could affect electric reliability, wholesale electric markets and operations, and energy infrastructure.  FERC recently held the … Continue Reading

FERC Conferences to Address Impact of EPA’s Clean Power Plan on Electricity Reliability and Markets

Further highlighting the breadth of potential impacts of EPA’s proposed Clean Power Plan on our nation’s system of electricity generation and the difficult issues posed by the relation of EPA’s proposal to state and regional energy regulatory authorities, FERC has planned a focused dialogue around these issues. Some members of Congress and others have raised concerns … Continue Reading

Wholesale Electricity Market Developments in the U.S.

Significant developments have occurred recently in wholesale electricity markets in the lower Midwest and Western regions of the U.S. Earlier this week, the Federal Energy Regulatory Commission approved a substantial expansion of the Southwest Power Pool (SPP).  SPP is a FERC-regulated Regional Transmission Organization that administers the grid across a nine-state footprint in the south … Continue Reading

FERC Exploring RTO/ISO Market Pricing And Operational Practices

At its recent public meeting, FERC opened a staff-led proceeding to address price formation and related issues in the RTO/ISO wholesale electricity energy markets.  Concerns with whether these organized markets are attracting appropriate levels and types of new generation capacity and the markets’ performance during last winter’s Polar Vortex have raised questions regarding their designs … Continue Reading
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