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November 19, 2010

FERC Issues Variable Resource Integration NOPR
FERC yesterday issued a NOPR which is intended to aid integration variable energy resources (particularly in non-organized markets) which would: (1) require public utility transmission providers to offer intra-hourly transmission scheduling at 15 minute intervals; (2) incorporate provisions into the pro forma Large Generator Interconnection Agreement requiring interconnection customers whose generating facilities are variable energy resources to provide meteorological and operational data to public utility transmission providers for the purpose of power production forecasting; and (3) add a generic ancillary service rate schedule through which public utility transmission providers will offer regulation service to transmission customers delivering energy from a generator located within the transmission provider's balancing authority area (RM10-11).

FERC Eliminates Regional Discretion in Bulk Power System Definition
Further usurping the power of the regional reliability entities in favor of a mandated federal standard, FERC issued an order directing NERC to revise the definition of "bulk electric system" to include a bright-line threshold that includes all facilities operated at or above 100 kV, with the establishment of an exception process and criteria for excluding facilities that are not necessary for operating the interconnected transmission network (RM09-18).  Inclusion in the bulk electric system exposes an asset owner or operator to a host of compliance obligations.

FERC Opens Section 5 Investigation of Two Pipelines
FERC has opened separate investigations of Kinder Morgan Interstate Gas Transmission LLC and Ozark Gas Transmission, L.L.C., pursuant to section 5 of the Natural Gas Act, to determine if the companies are over-recovering costs, resulting in unjust and unreasonable rates charged to their customers (RP11-1494 & RP11-1495).

FERC Issues Enforcement Report
FERC has issued its 2010 Report on Enforcement.

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