FERC initiated show-cause proceedings on April 21, 2022, to investigate the justness and reasonableness of the formula rate protocols of five public utility transmission providers in the West.
Power & Pipes
FERC, CFTC, and State Energy Law Developments
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 standard-related directives issued by applicable governmental authorities. NERC reported that since March 29, 2021, the date of NERC’s last annual report, it filed petitions with the Federal Energy Regulatory Commission (FERC) addressing four reliability standards-related directives.
At its December 2021 open meeting, the Federal Energy Regulatory Commission (FERC or the Commission) approved new rules to improve utilization of the transmission system by redefining “transmission line rating” to account for ambient weather conditions. The Commission expects that the change will permit greater transmission line utilization while also fostering reliability and safety. Transmission providers have 120 days to submit a compliance filing to account for the redefinition and must implement all requirements within three years of the compliance filing due date.
The Federal Register recently published the US Department of Energy’s (DOE) notice of Request for Information (RFI) seeking public input on energy sector supply chains. The RFI requests that stakeholders provide comment on a wide variety of issues concerning supply chains of energy and related technologies.
US congressional Democrats released the latest version of H.R. 5376—better known as the Build Back Better Act—late last week, hoping to advance a $1.85 trillion spending package after months of deadlock.
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, FERC issued an order establishing a joint federal-state task force with NARUC to evaluate barriers and solutions to transmission development. The task force will conduct joint hearings on transmission-related issues with a focus on developing ways to plan and pay for new transmission facilities that are best for the public interest.
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 allocation and generator interconnection processes. Comments and reply comments are due 75 days and 105 days, respectively, after publication in the Federal Register.
Bill Kissinger, Ella Foley Gannon, and Rick Rothman discuss recent US regulatory and legislative developments addressing climate change and renewable energy. They discuss the Biden-Harris administration's focus on setting goals to address climate change and highlight the success in California as a possible model for the United States. Read the Law360 article.