Competitive Generators Seek Rehearing of FERC Station Power Order

Several competitive generators and their trade associations sought rehearing of FERC's recent station power order in Docket EL04-130 et. al., claiming that FERC misinterpreted an appeals court decision remanding a station power issue to FERC, and, "pull[ed] the rug out from under market participants who have reasonably relied on nearly a decade's worth of sound precedent preventing states from adopting station power netting rules that conflict with federal requirements and from imposing unduly discriminatory burdens on competitive generators."

In its order (Matters, 8/31/10), FERC determined that the Commission and the states can use different methodologies when the Commission determines the amount of station power that is transmitted on the Commission-jurisdictional transmission grid and the states determine the amount of station power that is sold in state-jurisdictional retail sales.

The generators noted that FERC's six-page order, in which five pages are devoted to discussing procedural background and only one paragraph addresses the Commission's determination, "does not even attempt to provide a reasoned explanation for the Commission's 180 degree change in position."