National Energy Law Developments
Fate of Ocean Power Projects Requires FERC and Interior Cooperation
Jurisdictional jockeying between FERC and the Department of Interior threatens development of Outer Continental Shelf (OCS) ocean power projects. The issue calls out for agency cooperation and possibly an interagency agreement similar to that between FERC and the U.S. Forest Service for licensing and permitting hydroelectric projects on Forest Service lands. Absent such cooperation, the [...]
GAO Report Urges FERC to Be More Specific on Costs, Benefits of RTO Membership
The Government Accountability Office (GAO) issued a report to Congress on September 26 urging FERC to take additional steps to analyze the benefits and performance of the Regional Transmission Organizations (RTOs) that manage regional transmission grids. FERC’s development of RTOs has been controversial from the beginning, with many arguing that they ultimately increase electricity prices. [...]
First NERC Penalty Notices Suggest Focus on Enforcement
On June 4, 2008, the North American Electric Reliability Corporation made its first public announcement of its Notices of Penalty when it filed at FERC the first batch of proposed penalties for reliability standard violations. Most Notices of Penalty filed with FERC were for a zero penalty amount, however, Baltimore Gas & Electric and MidAmerican [...]
FERC Augments, Revamps Enforcement Guidance and Procedures
FERC has taken several steps to clarify its policies for conducting enforcement investigations, carrying out its authority to impose penalties on violators, and broadening the scope of issues to be covered by its ex parte rules and no-action letter procedures. The additional guidance is welcome in light of the seemingly haphazard approach to enforcement that [...]
FERC Mostly Affirms Market-Based Rate Program
On April 21, FERC issued an order generally affirming its market-based rate program, promulgated last June in Order No. 697. FERC left many of its prior determinations in place, including much of the analysis sellers must provide in order to receive or maintain authority to sell electric energy, capacity, and/or ancillary services at market-based rates. [...]