The filing deadline for FERC-566, the annual report of a public utility’s 20 largest customers, is due February 2, 2015. This requirement applies to all retail suppliers that hold FERC market-based rate authorization. Much to the dismay of retail suppliers, this public filing includes a requirement to publish a list that discloses valuable customer information – any company, firm, or organization that is one of the 20 largest retail purchasers during any one of the three preceding calendar years. Each of these 20 largest purchasers must also be notified that it is on the list. On December 18, FERC proposed a rule change that, if adopted, would release several categories of public utilities from the requirement to file Form 566. FERC is also proposing to make changes that could lower the cost of compliance, and limit disclosure requirements. These proposed changes will benefit retail suppliers who hold FERC authorization. Continue reading
How will demand response (“DR”) be compensated in wholesale energy markets under NY’s Reforming the Energy Vision (“REV”) initiative in the wake of the DC Circuit Court’s decision vacating Order 745, and how will the bulk system respond to cuts in peak demand with the growth of distributed energy generation (“DEG”)? How will FERC’s role change as regulation of DR migrates from federal to state jurisdiction? This article focuses on DR, and a follow up will be coming shortly on DEG in our ongoing series on REV. Continue reading
On November 20, FERC Enforcement announced the issuance of its annual report for fiscal year 2014. All market participants in the energy industry need to ensure that their ducks are in a row as FERC Enforcement is continuing its focus on fraud and market manipulation. Just over the last few months, FERC enforcement has been active in the power marketing industry. For example, on August 5, FERC’s issued a public notice of violations against Powhatan Energy Fund for allegedly manipulating PJM’s up-to congestion market. On August 25, FERC issued a notice of violation against City Power Marketing for allegedly manipulating PJM’s up-to congestion market. On September 29, FERC approved a settlement between DC Energy, LLC, Scylla Energy LLC and PJM regarding a dispute over the deviation charges applied to internal bilateral transactions. In addition, at the end of October FERC announced that it has opened three probes, one into the natural gas market and two generators that took advantage of uplift payments last winter.
Below are some highlights from FERC Enforcement’s annual report: Continue reading
Here Are Your 6 Top Stories This Week at FERC:
- FERC Revokes Market-Based Rate Authority for 26 Utilities
- PJM Updates Capacity Performance Proposal
- Proposal For Centralized Bilateral Natural Gas Market Exchange Gets Pushback
- NYPSC Takes FERC to Court Over New Capacity Zone
- FERC Launches Investigation into Market Manipulation
- ISO-NE Responds to NEPGA’s Winter Reliability Program Concerns
On October 20, the Court of Appeals for the DC Circuit issued a stay on its ruling to vacate Order 745. The stay will be in effect until December 16, which will give the Solicitor General and FERC time to issue a writ of certiorari to the Supreme Court. If the case goes to the Supreme Court, then Order 745 will remain in effect until a final ruling is issued on the matter. For a refresher on Order 745, which lays out FERC’s demand response program to compensate end-users for reducing their consumption in wholesale organized markets, see our previous blog post here.
In FERC’s request to the DC Circuit for a stay of its decision on Order 745, FERC indicated that it may petition the Supreme Court for review. There is currently a great deal of uncertainty on the scope of FERC’s jurisdiction between wholesale and retail markets. While policy professionals are working to resolve this jurisdictional conundrum, stakeholders are wading in a bath of market uncertainty. Continue reading
On October 9, FERC issued an order stating its intent to revoke market based rate authority from 43 companies that have failed to file their Electronic Quarterly Reports (EQRs). Unless all outstanding EQRs are filed for each of these companies, FERC will, within 15 days of the order, “revoke that public utility’s market-based rate authorization and will terminate its electric market-based rate tariff.” The bottom line is that FERC is ramping up its enforcement efforts across the board, and the entities listed below have until October 24 to get their EQRs up to date and save themselves from FERC’s blacklist. All retail electric providers (“REP”) and electric generation suppliers must be aware of what EQRs are. Losing market based rate authority can put an electric company, whether a REP or a supplier, out of business. Continue reading
On August 22, the New York Public Service Commission (NY PSC) issued a proposed rule on the Reforming the Energy Vision (REV) initiative and comments were submitted throughout September. In short, the PSC intends to transform NY’s utilities into Distributed System Platform Providers (DSPPs), which will create, operate, plan, and police new markets for distributed energy resources (DER) and demand response (DR), in addition to acting as a local balancing authority (like a distribution level RTO). Retail Energy Providers (REPs aka ESCOs in NY) are asking, who will police the DSPPs and what will stop utility-affiliated generation from getting preferential treatment?
In our last post on this matter, we highlighted that REV may serve as one of the main driver’s of NY’s compliance efforts under the EPA’s Clean Power Plan. Now that REV’s form is taking shape, it’s being asked whether New York is sacrificing its freedom from monopoly control over the energy industry for the sake of expedience. The question is whether utilities, rather than a third party, should take on this role, as the argument follows that utilities have the resources and ability to more easily expand into becoming DSPPs. Continue reading