Report of the Power Generation and Marketing Subcommittee

Energy Law Journal, July 1, 2019 | Go to article overview

Report of the Power Generation and Marketing Subcommittee


This report covers significant developments pertaining to electric power generation and marketing, from July 1, 2018 through June 30, 2019.·

I. FERC Developments

A. Order No. 845-A

On February 21, 2019, the Federal Energy Regulatory Commission (FERC) issued Order No. 845-A,1 granting in part and denying in part the requests for rehearing and clarification of its determinations in Order No. 845.2 Order No. 845 adopted many of the reforms proposed in FERC's 2016 Notice of Proposed Rulemaking on Generator Interconnection Procedures and Agreements3 to provide interconnection customers (ICs) with better information and more options for obtaining interconnection service such that there are fewer interconnection requests overall and fewer interconnection requests that are unlikely to reach commercial operation.

In Order No. 845, the FERC adopted ten different reforms to its pro forma Large Generator Interconnection Procedures and pro forma Large Generator Interconnection Agreement.4 With regard to the "option to build reform," the FERC granted rehearing in order to: "(1) require that transmission providers explain why they do not consider a specific network upgrade to be a standalone network upgrade; and (2) allow transmission providers to recover oversight costs related to the interconnection customer's option to build."5 With regard to the surplus interconnection service reform, the FERC granted rehearing to explain that the FERC does not intend to limit the ability of Regional Transmission Organizations (RTOs) and Independent System Operators (ISOs) to "argue that an independent entity variation from the [FERC's] surplus interconnection service requirements is appropriate."6 With regard to the reform for requesting interconnection service below generating facility capacity, the FERC granted rehearing in part and found that "an interconnection customer may propose control technologies at any time in the interconnection process that it is permitted to request interconnection service below generating facility capacity."7

Further, the FERC granted clarification with regard to "the option to build by finding that: (1) the Order No. 845 option to build provisions applies to all public utility transmission providers, including those that reimburse the interconnection customer for network upgrades; and (2) the option to build does not apply to stand alone network upgrades on affected systems."8 The FERC also granted clarification

with regard to transparency regarding study models and assumptions to find that: (1) transmission providers may use the FERC's critical energy/electric infrastructure information (CEII) regulations as a model for evaluating entities that request network model information and assumptions; and (2) the phrase "current system conditions" does not require transmission providers to maintain network models that reflect current real-time operating conditions of the transmission provider's system.9

With regard to the interconnection study deadlines reform, the FERC clarified "that the date for measuring study performance metrics and the reporting requirements do not require transmission providers to post 2017 interconnection study metrics."10 The FERC also granted clarification that, when requesting interconnection service below generating facility capacity, a transmission provider must provide a detailed explanation of its determination to perform additional studies at the full generating facility capacity for an interconnection customer that has requested service below its full generating facility capacity.11 The FERC denied all other requests for rehearing and clarification.12

B. Order No. 841-A

On May 16, 2019, the FERC issued Order No. 841-A,13 its Order on Rehearing and Clarification related to Electric Storage Participation in Markets Operated by RTOs and ISOs. In Order No. 841 -A, the FERC denied the requests for rehearing of Order No. 84114 and denied in part and granted in part the requests for clarification. …

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