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FERC Proposes Reforms to RTO Participation Incentive in Supplemental NOPR | Troutman Pepper

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On April 15, 2021, FERC issued a Notice of Proposed Rulemaking (“NOPR”) to supplement the March 2020 NOPR regarding its electric transmission incentive policy under Federal Power Act (“FPA”) section 219 (
see March 23, 2020 edition of the
WER). While FERC’s March 2020 NOPR proposed to provide all utilities that turn over their wholesale transmission facilities to a Regional Transmission Organization (“RTO”) a fixed 100 basis-point increase in return on equity (“ROE”) (“RTO Participation Incentive”), the Supplemental NOPR proposes instead to codify its current practice of granting a 50 basis-point RTO Participation Incentive for utilities that join an RTO. In addition, FERC proposes that a utility will only be eligible for the incentive for the first three years after transferring operational control of its facilities to an RTO. The Supplemental NOPR also seeks comment on whether the RTO ....

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FERC overstepping its authority in move to lower demand response barriers, NARUC, utilities charge

Dive Brief:
Utilities and state regulators are protesting a decision from federal regulators to prevent states from blocking demand response aggregates participation in the wholesale markets.
In several requests for rehearing filed with the Federal Energy Regulatory Commission on Tuesday, utilities within the Midcontinent Independent System Operator (MISO), the investor-owned utility trade group Edison Electric Institute, the National Association of Regulatory Utility Commissioners (NARUC) and individual state commissions questioned the FERC s March decision Order 2222-A denying states an opt-out option when it comes to allowing aggregated demand response to bid into the wholesale markets.
Demand response and clean energy advocates had praised the ruling as the commission s next step in lowering barriers to distributed energy resources under Order 2222. But utilities and state regulators say the order oversteps FERC s authority. ....

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FERC chief Danly's bid to investigate CAISO over August blackouts rejected by Glick, Chatterjee

Dive Brief:
The Federal Energy Regulatory Commission chair s proposal to initiate a show cause investigation into the California grid operator s tariff was shot down Thursday in a 2-1 vote.
FERC Chair James Danly proposed issuing a section 206 proceeding following blackouts across California last summer in order to determine whether the market needs modification ahead of next summer. I think that there is an urgent need for action in CAISO, he said. Our job is to ensure that rates are just and reasonable. And I think that given the experience in CAISO it is necessary for us to ask the question as to whether or not in our oversight responsibilities, it is necessary to inquire as to the fitness of the tariffs they currently have, he added. ....

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Clements sworn in at FERC, creating partisan split - Governors' Wind Energy Coalition

Governors Wind Energy Coalition
Clements sworn in at FERC, creating partisan split
Source: By Arianna Skibell, E&E News reporter • Posted: Thursday, December 10, 2020
The Federal Energy Regulatory Commission’s newest member, Allison Clements, is sworn in yesterday.@FERC/Twitter
Democrat Allison Clements was sworn into the Federal Energy Regulatory Commission late Tuesday, creating a partisan split of two Republicans and two Democrats.
Clements joins FERC Chairman James Danly (R) and Commissioners Neil Chatterjee (R) and Richard Glick (D) on the five-member panel charged with overseeing regional energy markets and large-scale natural gas infrastructure.
Along with Clements, a longtime energy lawyer, President Trump nominated Republican Mark Christie earlier this year. Christie’s swearing-in ceremony is slated for early January, raising questions about a temporary gridlock during FERC’s next meeting Dec. 17. ....

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