Energy & Utilities – Page 9 – Global Power Law & Policy

CFTC Proposes to Permit Private Rights of Action Against RTOs and ISOs and Persons Transacting Thereon

Aug 08 2016

By Lawrence Patent

The Commodity Futures Trading Commission (CFTC) has proposed to amend its previous Order exempting specified electric energy transactions from certain provisions of the Commodity Exchange Act (CEA) and CFTC regulations and to permit a private right of action against regional transmission organizations (RTOs) and independent system operators (ISOs) and persons transacting thereon for alleged fraud and manipulation. 81 Fed. Reg. 30245 (May 16, 2016). The CFTC stated that it did not intend in the original RTO/ISO Order, issued in 2013 (78 Fed. Reg. 19880 (April 2, 2013)), to grant exemption from the private right of action provided in CEA Section 22, but the Fifth Circuit held that this was the effect of the RTO/ISO Order in Aspire Commodities, L.P. v. GDF Suez Energy N.Am., Inc., No. 15-20125, 2016 WL 758689 (5th Cir. Feb. 25, 2016). Therefore, were the CFTC to adopt the amendment to the RTO/ISO Order, it would in effect be overruling Aspire. The types of transactions covered by the RTO/ISO Order include financial transmission rights, energy transactions, forward capacity transactions, and reserve or regulation transactions, and the RTO/ISO Order applies to any person or class of persons offering, entering into, rendering advice, or rendering other services with respect to these transactions.

Puget Sound Energy Reports to the Washington UTC on the Progress of its Efforts to Join the CAISO Energy Imbalance Market; CAISO Releases Study Chronicling Benefits of a Regional Energy Market

Jul 28 2016

By Eric Jay and Kari Vander Stoep

Puget Sound Energy (“PSE”) recently presented to the Washington Utilities and Transportation Commission (“WUTC”) regarding the steps it is taking to join the California-based Energy Imbalance Market (“EIM”) this coming fall. WUTC Docket No. 151425 (July 20, 2016). The EIM is a new energy market overseen by the California state energy balancing authority – the California Independent System Operator (“CAISO”) – that came online in November 2014. It is intended to increase reliability and other benefits for affected costumers by coordinating the dispatch of energy generation and transmission from utilities across an expanded geographic footprint that is expected to encompass significant portions of eight western states by the end 2018. As of the end of the second quarter this year, CAISO estimates that the EIM has resulted in a $65 million gross benefit for its participants to-date.

FERC Issues Rule Requiring Wind Generators to Provide Reactive Power as a Condition of Interconnection

Jul 05 2016

By Ben Tejblum and William Keyser

On June 16, 2016, the Federal Energy Regulatory Commission (the “Commission”) issued Order No. 827, which establishes reactive power requirements for all new non-synchronous generation (the “Rule”).[1] Specifically, the Rule revises the Commission’s pro forma Large Generator Interconnection Agreement (“LGIA”) and pro forma Small Generator Interconnection Agreement (“SGIA”) to require that newly interconnecting non-synchronous generators, including wind generators, provide dynamic reactive power pursuant to the terms of their interconnection agreements. The Rule is the result of a Notice of Proposed Rulemaking addressing reactive power requirements that was issued by the Commission last November.

Eagle Take Permit Program Revamped – Longer Permits and Clearer Mitigation Requirements

May 24 2016

The United States Fish and Wildlife Service recently proposed revisions to its regulations authorizing take of bald and golden eagles.

The Bald and Golden Eagle Protection Act (“BGEPA”) imposes criminal and civil penalties against “whoever . . . shall take . . . any bald . . . or any golden eagle, alive or dead, or any part, nest, or egg thereof . . . .” “Take” is broadly defined to mean “pursue, shoot, shoot at, poison, wound, kill, capture, trap, collect, molest or disturb.” The United States has expressed its intent to pursue companies that violate BGEPA.

Read the full alert on K&L Gates HUB.

Oregon PUC to Hold Energy Storage Workshop on May 9, 2016

Apr 29 2016

The Public Utility Commission of Oregon (the “Commission” or “OPUC”) has scheduled a workshop on May 9, 2016 to assist the Commission with its task of adopting guidelines that utilities are to use when drafting and submitting energy storage proposals under House Bill (HB) 2193. The workshop was scheduled in response to a Commission-request at the March 30, 2016 prehearing conference in Docket No. UM 1751, which was opened in compliance with HB 2193. At the prehearing conference, Administrative Law Judge Ruth Harper informed the parties that the Commission wanted the proceeding to start with a Commission workshop to address the purpose and content of the guidelines, as well as the range of viable projects. Read More

Washington State Legislation May Facilitate Cost Recovery for Coal Plant Retirement

Apr 05 2016

With a partial veto from Governor Inslee on April 1, 2016, Washington State has enacted legislation that may help Puget Sound Energy (PSE) recover costs associated with the decommissioning and remediation of its interest in the Colstrip coal-fired plant, which is located southwest of Billings, Montana. PSE owns half of the older two units of the Colstrip plant. Engrossed Substitute Senate Bill (SB) 6248 expressly authorizes the Washington Utilities and Transportation Commission (WUTC), after a hearing, to allow a utility to “to place amounts from one or more regulatory liabilities into a retirement account” for decommissioning and remediation costs for the older two units. Thus the WUTC now has the express authority to allow PSE to use certain tax credits to help cover decommissioning and remediation costs at the Colstrip plant instead of returning those tax credits to customers over time.

FERC Schedules Technical Conference to Explore Generator Interconnection Issues

Apr 01 2016

On March 29, 2016, the Federal Energy Regulatory Commission (“FERC” or “Commission”) issued a Notice of Technical Conference announcing that it will hold a technical conference on May 13, 2016, to explore generator interconnection issues faced by interconnection customers, transmission owners and transmission operators across the United States. The issues discussed during the technical conference could have significant implications for the generator interconnection process.

Robert J. Grey Joins K&L Gates

Mar 30 2016

K&L Gates is pleased to announce that Robert J. Grey has joined the firm as partner in the Washington, D.C. office.

Bob Grey has 40 years of energy and utility law experience, advising on regulatory, compliance, and corporate governance matters, as well as on various business acquisitions and mergers and spinoff initiatives. A member of our Energy practice and the Global Boardroom Risk Solutions initiative, Bob will focus on issues involving senior corporate leaders and board members. He joins the firm from PPL Corporation, where he served as executive vice president, general counsel, and chief legal officer. Previously, he was a partner at K&L Gates legacy firm Preston Gates & Ellis LLP.

Read the press release here.

K&L Gates and CleanTech Alliance to host Washington Department of Commerce’s Clean Energy Fund 2 Virtual Bidder’s Conference on January 12, 2016

Jan 11 2016

The Washington State Department of Commerce is holding its Virtual Bidder’s Conference on January 12, 2016 at the Seattle office of K&L Gates to provide information to applicants about applying for Clean Energy Fund 2 grants. As mentioned in an earlier blog post, the Clean Energy Fund provides grants to projects that support the development, demonstration and deployment of clean energy technologies. The CleanTech Alliance has been hosting a series of public meetings across Washington State to provide a platform for the Washington Department of Commerce to provide information to and answer questions from applicants.

FAST Act Expedites Permitting and Environmental Review for Large Infrastructure Projects

Jan 08 2016

Expedited permitting and environmental review for complex infrastructure projects may soon be a reality. Buried at the end of its most recent transportation reauthorization package (the “FAST Act” or “Act”) is a significant new initiative intended to fundamentally change the way that federal agencies evaluate environmental impacts from, and issue permits for, construction of large infrastructure projects. [1]

National Environmental Policy Act (“NEPA”) review and environmental permitting for complex infrastructure projects can be costly and protracted. For instance, a U.S. Government Accountability Office Report stated that the average completion time for an Environmental Impact Statement (“EIS”) in 2012 was 4.6 years. [2] Between 2003 and 2012, the Department of Energy paid contractors an average fee of $6.6 million, and as much as $85 million, to prepare EISs. [3] The cost to prepare an EIS is often borne by project sponsors. Some transportation and water resources projects currently benefit from expedited permitting and environmental review procedures, [4] but the FAST Act is the first time that Congress has attempted to coordinate NEPA review across federal agencies and industry sectors.

Read the full alert on K&L Gates HUB

Catagory:Energy & Utilities