On February 18, 2021, FERC approved the recertification of Brunner Island, LLC’s status as an exempt wholesale generator (EWG) subject to conditions that limit the economic activity of Brunner unrelated to wholesale power activities.
Power & Pipes
FERC, CFTC, and State Energy Law Developments
FERC has issued an order revising its prior order on PJM’s Minimum Offer Price Rule (MOPR) by vacating a footnote that suggested the New Jersey Basic Generation Service default service auction—and by extension other state default service auctions shaped by state resource policy—were not “fuel neutral” or “nondiscriminatory” as required by Commission precedent. As a result of this clarification, resources selected through the New Jersey default service auction will not be presumed to be subject to the MOPR and may be eligible for the MOPR exclusion for independently evaluated, nondiscriminatory, fuel-neutral, competitive state-directed default service auctions.
A LawFlash prepared by our energy team discusses likely results of the Texas power outages and blackouts during the recent winter storm, which include federal and state investigations into the outages, federal investigations into commodity and futures price spikes during the storm, force majeure inquiries, and demands for corrective actions to ensure future reliability of the grid system.
FERC Chairman Richard Glick announced his plans on February 11 to better incorporate environmental justice and equity concerns into FERC’s decisionmaking process.
In May 2020, US President Donald Trump issued Executive Order 13920, banning the unrestricted import or use of certain categories of bulk-power system electric equipment from foreign adversaries, with a focus on Russian and Chinese equipment suppliers. The future of that regulation is now up in the air.
During its January open meeting, FERC issued an order directing independent system operators (ISOs) and regional transmission organizations (RTOs) to submit informational reports regarding co-located generation resources. The order focuses on so-called “hybrid resources,” which is a term that refers generally to sets of co-located resources sharing a single point of interconnection that can be separately dispatchable or modeled and dispatched as a single integrated resource. The forthcoming reports could shed light on the manner in which hybrid resources are, or could be, participating in wholesale markets as well as the hurdles to such participation.
In an expected move, President Joe Biden has designated Commissioner Richard Glick as the new FERC Chairman. Chairman Glick takes over from Commissioner James Danly, whose term as Chairman lasted less than three months.
FERC has issued a notice of inquiry inviting comments on potential changes to its regulations requiring financial assurance measures in licenses and other authorizations for hydroelectric projects.
At its December open meeting, FERC proposed to establish rules for incentive-based rate treatments for voluntary cybersecurity investments by a public utility.
FERC has issued a final rule, Order No. 874, expanding the eligibility criteria for Qualifying Facilities (QFs) as defined under the Public Utility Regulatory Policies Act of 1978 (PURPA) to enable certain fuel cell–based electric generation to receive QF status.