In late 2012 and early 2013, the Federal Energy Regulatory Commission took several actions that, in various ways, may support renewable energy resource development within the U.S.

Enhancing the Integration of Variable Energy Sources. On December 20, 2012, the FERC revisited Order No. 764 regarding variable energy resources ("VERs") and extended the compliance deadline from September 11, 2013 to November 12, 2013 to avoid implementing the new requirements during the summer peak season. VERs are energy sources (such as wind and solar) that are renewable, cannot be stored by the facility owner or operator, and have variability that is beyond the control of the facility owner or operator.

As originally issued, Order No. 764 required all public utility transmission providers to offer VERs intra-hourly transmission scheduling at 15-minute intervals and required interconnecting VERs to provide meteorological and forced outage data to the public utility transmission provider to facilitate power production forecasting. On rehearing, in addition to modifying the compliance deadline, the FERC clarified that the intra-hour scheduling reform applied to all transmission customers, including load serving entities and network service customers. The FERC also agreed that in the absence of sub-hourly settlement and dispatch, a public utility transmission provider must account for intra-hour imbalances to ensure that they are properly factored into the calculation of hourly imbalance charges.

Responding to comments from the wind industry, the FERC also emphasized that a public utility transmission provider must explain how the variations of all resources and loads are accounted for in its Section 205 filing. VERs will have an opportunity to challenge these individual filings to the extent that the provider has not justified how it accounts for all variations.

Affirming Finding of Discriminatory Actions Against Wind Generation. The FERC also revisited its decision on a complaint that pitted two renewable resources against each other: hydroelectric resources operated by the Bonneville Power Administration and wind facilities operated in the Pacific Northwest. In its original decision, the FERC found that Bonneville's Environmental Redispatch Policy discriminated against wind resources by enabling Bonneville to issue dispatch orders that required wind generation to reduce its output. Bonneville then unilaterally substituted energy generated by its own hydroelectric system for energy no longer produced by the curtailed wind generation.

In a December 20, 2012 order denying rehearing, the FERC denied challenges to its order based on jurisdictional grounds and rejected arguments that hydroelectric and wind facilities were not similarly situated due to operational differences or Bonneville's statutory environmental obligations. Instead, the FERC found that Bonneville's actions affect the ability of certain resources to inject energy at a point of receipt by effectively changing the point of receipt from the affected resource to Bonneville's hydroelectric facility. The FERC held that this unilateral action interrupts the firm point-to-point transmission service of non-federal transmission customers, without causing similar interruptions to firm transmission service for federal resources. Thus, the FERC concluded, Bonneville's actions result in the noncomparable treatment of certain generation connected to Bonneville's transmission system.

Guidance for Merchant Transmission Project Developers. Finally, in a January 17, 2013 Final Policy Statement that could strengthen the ability of certain transmission projects to reach remote renewable generation resources, the FERC clarified its policies governing the allocation of capacity for new merchant transmission projects and new nonincumbent, cost-based, participant-funded transmission projects. The new policy gives merchant transmission projects more options by allowing them to allocate up to 100 percent of their projects' capacity through bilateral negotiations, as long as the developers follow the FERC's new open solicitation process. That process includes a broad notice that ensures that all potential and interested customers are informed of the proposed project and specifies the criteria that the developer plans to use to select transmission customers. Developers are also required to make a post-selection demonstration showing that the process was consistent with the FERC's policy and open access principles.

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