FERC Approves $16 Million Civil Penalty in Settlement with WECC over Southwest Blackout

On May 26, 2015, FERC approved a stipulation and consent agreement ("Settlement") between FERC's Office of Enforcement ("Enforcement") and the North American Electric Reliability Corporation ("NERC"), and the Western Electricity Coordinating Council ("WECC") and Peak Reliability—WECC's NERC-certified Reliability Coordinator.  Among other items, the Settlement provides for a $16 million civil penalty against WECC, and resolves FERC and NERC's investigation of WECC for Reliability Standard violations that contributed to the September 8, 2011 Southwest Blackout. [Read more]

NRC to Consider Variable Annual Fee for Small Nuclear Reactors

On May 15, 2015, the Nuclear Regulatory Commission approved a staff proposal to develop "variable" fees for small modular reactors ("SMRs") through a subsequent rulemaking process.  The annual fees could then be modified for individual SMRs based on megawatt capacity.  Currently, annual fees are allocated equally among all operating nuclear reactors.  The annual fees are used to fund 90 percent of the NRC's budget, as required by law. [Read more]

D.C. Circuit Upholds FERC Jurisdiction over California Hydro Facility

On May 15, 2015, the U.S. Court of Appeals for the District of Columbia Circuit ("D.C. Circuit") denied a petition for review of FERC's order determining that the La Grange Hydroelectric Project ("Project") fell within the mandatory licensing provisions of the Federal Power Act ("FPA").  In doing so, the D.C. Circuit rejected arguments made by the owners of the Project – the Turlock Irrigation District and the Modesto Irrigation District (collectively, the "Districts") – that FERC's decision was arbitrary and capricious for asserting jurisdiction over a historical hydro facility that owners contend does not qualify for FPA's mandatory licensing triggers. [Read more]

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