Power & Pipes

In our final dispatch from the CERAWeek conference by S&P Global, Felipe Alice shared some insights and key takeaways from a luncheon and dialogue session featuring tech entrepreneur, investor, and philanthropist Bill Gates.

Our coverage of the CERAWeek conference by S&P Global in Houston, running from March 18 to March 22, continues with more updates. Today’s missive comes from the Innovation Agora, which is connected to the Executive Conference at CERAWeek. The Innovation Agora is described as a “vibrant and interactive marketplace of ideas on energy innovation and emerging technologies.” It includes several amphitheaters or “hubs” that are designed for presentations and conversations involving the latest trends in climate change, carbon, hydrogen, and emerging energy technologies.

We’re back with another update from CERAWeek 2024 by S&P Global to highlight some key takeaways from day two of the conference. Many of the sessions on this day were dedicated to infrastructure development and highlighted the opportunities and the challenges facing energy project developers.

In a per curiam decision on October 3, 2023, the US Court of Appeals for the Sixth Circuit affirmed that the Federal Power Act prevents tort suits against the United States relating to damage caused by dams that are licensed by the Federal Energy Regulatory Commission (FERC). That is, liability for any injuries or damages caused by any dam licensed by FERC is solely the responsibility of the licensee, and liability cannot flow to the United States, even after dam failures.

FERC recently held a Staff-led technical conference to discuss whether, and if so, how, the Commission should require additional financial assurance mechanisms in the licenses and other authorizations it issues for hydroelectric projects, to ensure that licensees have the capability to carry out license requirements and, particularly, to maintain their projects in safe condition. The feedback received during the conference, as well as the comments to be filed, will likely shape the ultimate FERC rule on financial assurance requirements currently under consideration.

As an example of its renewed focus on dam safety, FERC recently issued an order assessing a $600,000 civil penalty to Ampersand Cranberry Lake Hydro LLC for a violation of Ampersand’s hydro license for the 500 kW Cranberry Lake Project No. 9658. The violation is related to Ampersand’s failure to complete known dam safety repairs over multiple years and its loss of property rights needed for the Cranberry Lake Project, located on the Oswegatchie River in St. Lawrence County, New York.

FERC recently issued an order to show cause and notice of proposed penalty to Ampersand Cranberry Lake Hydro LLC for a violation of Ampersand’s hydro license for the Cranberry Lake Project No. 9658 (Cranberry Lake Project). FERC ordered Ampersand to show cause as to why it should not be found to have violated Article 5 of the project license by failing to retain possession of all project property covered by the license, and to show cause as to why it should not be assessed a civil penalty of $600,000 for that violation.

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.