Archives: FERC

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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

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

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 Hears Concerns Regarding EPA Carbon Rules, But Next Steps Remain Less Than Clear

At the first in a series of technical conferences, industry and government stakeholders yesterday strongly urged FERC to be proactive in helping to shape the EPA’s Clean Power Plan (“CPP”).  What remains unclear, however, is precisely how the Commissioners can and will seek to influence a rulemaking over which the Commission lacks jurisdiction. FERC is convening four … 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

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

New gas-fired and renewable generators stress natural gas infrastructure; more gas storage may be the answer.

Half of the new electricity generation plants added in 2013 are fired by natural gas and almost 30% of new generation is powered by solar and wind energy, according to an April 8 report from the Energy Information Administration.  This combination is likely to mean even more demands on the already-strained natural gas delivery infrastructure. … Continue Reading

FERC Acts to Improve Coordination Between the Natural Gas and Electricity Industries

The increasing reliance on natural gas to fuel electricity generators has sparked a need for more coordination between the operators of gas pipelines and electricity grids. Up to now, markets and operations in the two sectors have proceeded independently, but some differences between them have become problematic. Differences are especially problematic in New England, where … Continue Reading

FERC Acknowledges Physical Security Risks to Bulk Power System and Begins Development of Standards for Protection Against Physical Attacks

On March 7, 2014, the Federal Energy Regulatory Commission (“FERC”) directed the North American Electric Reliability Council (“NERC”) to develop new standards for the protection of critical elements of the bulk-power system from physical attacks.  In recent years there has been considerable attention paid to the potential for cyber-attacks against the transmission grid.  Following a … Continue Reading

FERC and CFTC Launch Information Sharing MOU

Earlier this year, the CFTC and FERC announced an information sharing Memorandum of Understanding (MOU) between the two agencies. The agencies have now announced that they have begun sharing market data pursuant to this MOU.  In addition, they have created an Interagency Surveillance and Data Analytics Working Group “to coordinate information sharing between the agencies … Continue Reading

Regional Electricity Market Adopts Improved Design

On March 1, the Southwest Power Pool (SPP), transitioned to a more sophisticated electricity market design that, according to SPP, is expected to realize up to $100 million in annual net benefits.  SPP is a FERC-regulated Regional Transmission Organization that administers the grid across a 370,000 square mile, nine-state footprint in the south central part … Continue Reading

Third Circuit Upholds FERC Order Approving PJM Tariff Targeting State Generation Capacity Subsidies

In the latest salvo in an ongoing controversy over state efforts to subsidize local generation capacity development, the Third Circuit in New Jersey Board of Public Utilities v. FERC upheld a final FERC order approving a PJM Interconnection tariff governing its wholesale capacity market.  The court denied appeals by the New Jersey and Maryland utility … Continue Reading
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