Power & Pipes

FERC, CFTC, and State Energy Law Developments
The DC Circuit has affirmed FERC’s application of the “cost causation” principle to prevent a public utility (the Utility) from allocating costs for facilities to customers that did not benefit from the facilities. The Utility had asked the court to overturn FERC’s order preventing the Utility from recovering transmission costs from customers located near the facilities because those facilities were built and intended to serve solely a separate group of customers located 300 miles away.
To address changing system needs, FERC ordered each Regional Transmission Organization and Independent System Operator (collectively, RTO/ISO) to submit information to the Commission regarding changes to wholesale markets within 180 days.