FERC Conditionally Approves PJM's "Multi-Driver" Transmission Planning Process
On February 20, 2015, the Commission conditionally approved PJM Interconnection, L.L.C.'s ("PJM") proposed modifications to the PJM Operating Agreement ("OA") and the PJM Open Access Transmission Tariff ("OATT") to allow for the planning and selection of "Multi-Driver" projects—i.e., transmission enhancements or expansions that address a combination of reliability, market efficiency, and public policy objectives—in the PJM Regional Transmission Expansion Plan ("RTEP"). Additionally, the Commission approved an associated cost allocation method proposed by the PJM Transmission Owners for the newly adopted process. Currently, PJM's process selects projects based on one factor, but does not have a procedure in place for selecting projects based on a combination of factors. [Read more]
FERC Rejects PJM's Request to Compensate Retiring Generators to Remain In-Service
On February 20, 2015, FERC rejected PJM Interconnection, L.L.C.'s ("PJM") proposed tariff revisions to enter into out-of-market capacity contracts to address resource adequacy concerns for the 2015/2016 delivery year because the proposal was "unreasonably vague and ill-defined." As such, FERC denied PJM's requested authority to compensate retiring generators to remain in-service. FERC did, however, accept a separate but related resource adequacy waiver request that would allow PJM to retain 2,000 megawatts ("MW") of capacity that PJM would have otherwise been required to release during the 2015/2016 delivery year. [Read more]
D.C. Circuit Court of Appeals Upholds FERC's Approval of Interstate and Intrastate Pooling Cost Arrangement for Trans Alaska Pipeline
On February 20, 2015, the U.S. Court of Appeals for the District of Columbia Circuit ("D.C. Circuit") held that FERC had the authority to approve a cost pooling agreement among the carriers of the Trans Alaska Pipeline System ("TAPS") that allocates certain fixed costs on the basis of each carrier's share of combined interstate and intrastate utilization of TAPS. In upholding this determination by FERC, the D.C. Circuit found that FERC could indirectly regulate intrastate oil prices as a result of its regulation of interstate prices. [Read more]
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