FERC | Global Power Law & Policy

Reactive Power Compensation for Renewable Energy Facilities: Opportunity Amidst Change

Jan 23 2023

By: Ruta Skučas, Maria Faconti, Kimberly Frank

Originally published in the Oil, Gas & Energy Resources Law Section Report – Volume 47, Number 1 / January 2023.

Reactive power provides synchronous and non-synchronous generators, as well as other forms of non-generation resources capable of providing reactive power, with a potential additional revenue stream. The provision of voltage support to the grid is an ancillary service, compensated in various ways in the various wholesale electricity markets. Renewable developers should familiarize themselves with the opportunities provided by reactive power compensation, even as some of the compensation models may be shifting.

In 2016, the Federal Energy Regulatory Commission (“FERC”) began allowing wind and solar facilities to offer reactive power as an ancillary service into wholesale electricity markets. Over the past few years, FERC and the independent system operators (“ISOs”) and regional transmission organizations (“RTOs”) began to revisit reactive power compensation models and, as a result, there has been a greater focus on reactive power issues in 2022. This article reviews the current status of reactive power compensation in various U.S. regions, as well as possible future changes.

Read Full Article

Heightened Scrutiny of Director Positions by FERC and DOJ

Nov 03 2022

U.S. Energy, Infrastructure, and Resources Alert

By: Ruta K. Skucas, Kimberly B. Frank, Drew Mann, Jennifer L. Mersing, Chimera N. Thompson

The Federal Energy Regulatory Commission and the Department of Justice recently issued orders and statements demonstrating concerns related to director positions and potentially interlocking directorates. These actions together signal greater attention paid to the identities and affiliations of directors serving on corporate boards. Going forward, companies should carefully review the composition of their (and their upstream owners’) board of directors to confirm they are in compliance with FERC and DOJ regulatory requirements.

READ FULL ALERT

For more information, please contact our Energy Infrastructure and Resources lawyers or visit our practice page.

Lessons To Be Learned from FERC’s Investigation of a New Power Project’s Participation in the New England Capacity Market

Jul 07 2022

By: Ruta K. Skucas, Kimberly B. Frank, Jennifer L. Mersing

On 28 June 2022, the Federal Energy Regulatory Commission (FERC) issued an order approving a Stipulation and Consent Agreement stemming from an enforcement investigation with Salem Harbor Power Development, LP (Salem Harbor or DevCo) in Docket No. IN18-18. Around a week prior to FERC issuing its Order, grid operator ISO New England, Inc. (ISO-NE) issued a notice to the market regarding the forthcoming settlement, then issued a second statement shortly thereafter. FERC’s Order, and any related forthcoming settlements, illustrate the consequence of failing to exercise the diligence necessary to ensure the accuracy of information reported by a market participant to an independent system operator/regional transmission organization (ISO/RTO), and sends a strong signal regarding the amount of discretion that ISO/RTO staff may exercise in implementing the market rules of its organization’s tariff.

READ FULL ALERT

For more information, please contact our Energy Infrastructure and Resources lawyers or visit our practice page.

The Energizer – Volume 103

Jul 01 2022

By: Buck B. Endemann, Molly K. Barker, Matthew P. Clark, Nathan C. Howe, Natalie J. Reid, Maeve C. Tibbetts, David Wang

There is a lot of buzz around clean technology, distributed energy resources (DERs), microgrids, and other technological innovations in the renewable energy and clean transport industries and how these developments can contribute to solving longstanding environmental justice issues. As these innovations develop, energy markets will undergo substantial changes to which consumers and industry participants alike will need to adapt and leverage. Every other week, K&L Gates’ The Energizer will highlight emerging issues or stories relating to the use of DERs, energy storage, emerging technologies, hydrogen, and other innovations driving the energy industry forward.

IN THIS ISSUE

FERC Initiates Rulemaking Aimed at Helping New Electric Generation Facilities Connect to the Grid
FERC Announces Two Proposed Rules Aimed at Improving Power System Resiliency against Extreme Weather
The U.S. Department of Energy Awards US$57.9 Million to Clean Energy and Emissions Reduction Projects Targeting Manufacturing Sector

READ VOLUME 103

Subscribe to The Energizer

FERC Moves Forward on Transmission Planning/Cost Allocation Reform

Apr 22 2022

U.S. Energy, Infrastructure, and Resources Alert

By: Ruta K. Skucas, Kimberly B. Frank, Jennifer L. Mersing

At its open meeting on 21 April 2022, the Federal Energy Regulatory Commission (FERC) issued a Notice of Proposed Rulemaking (NOPR) in response to its Advance Notice of Proposed Rulemaking: Building for the Future Through Electric Regional Transmission Planning and Cost Allocation and Generator Interconnection (Docket No. RM21-17). Commissioner Mark Christie and Commissioner Willie Phillips entered separate concurrences, while Commissioner James Danly dissented. According to the open meeting, the NOPR proposes to reform, pursuant to Federal Power Act Section 206, FERC’s electric regional transmission planning and cost allocation requirements. If enacted, the NOPR’s reforms would require public utility transmission providers to…

READ FULL ALERT

For more information, please contact our Energy, Infrastructure, and Resources lawyers or visit our practice page.

FERC Enforcement In 2021: A Year Of Change

Jan 04 2022

By: Ruta Skučas, Kimberly Frank, and Maeve Tibbetts

Originally posted on Law360 on January 3, 2022

2021 was a pivotal year for the Federal Energy Regulatory Commission‘s Office of Enforcement. Under the direction of Chairman Richard Glick, the office gained a new director, Janel Burdick, added threats to infrastructure as a new priority, and increased its pace of opening and closing investigations and reaching settlements.

Most significantly, Glick asserted at the presentation of the 2021 enforcement report that “the cop is back on the street,” and that he intends to ensure “vigorous oversight and enforcement” of jurisdictional markets.

Increased Investigations Under Chairman Glick

During the commission’s November 2020 open meeting, when the Office of Enforcement presented its 2020 annual report, then-Commissioner Glick criticized the commission’s enforcement efforts, which he perceived as lacking. In 2020, the commission opened only six new investigations, and reached three settlements totaling $553,376.

Continue on Law360

FERC Issues 2021 Enforcement Report

Dec 08 2021

By: Ruta K. Skucas, David L. Wochner, Donald A. Kaplan, Maeve C. Tibbetts, Oretha A. Manu

On 18 November 2021, the Federal Energy Regulatory Commission’s (FERC or Commission) Office of Enforcement (Enforcement) released its 2021 Annual Report on Enforcement (FY2021 Report). The FY2021 Report provides an overview of Enforcement’s priorities. It summarizes actions taken by the three divisions within Enforcement: Division of Investigations (DOI), Division of Audits and Accounting (DAA), and Division of Analytics and Surveillance (DAS).

READ FULL ALERT

The Energizer – Volume 92

Jun 28 2021

By: Buck B. Endemann, Daniel S. Cohen, Molly K. Barker, Natalie J. Reid, Matthew P. Clark, Nathan C. Howe, Maeve C. Tibbetts, Oretha A. Manu

There is a lot of buzz around clean technology, distributed energy resources (DERs), microgrids, and other technological innovations in renewable energy and clean transport industries, and how these developments can contribute to solving longstanding environmental justice issues. As these innovations develop, energy markets will undergo substantial changes to which consumers and industry participants alike will need to adapt and leverage. Every other week, K&L Gates’ The Energizer will highlight emerging issues or stories relating to the use of DERs, energy storage, emerging technologies, hydrogen, and other innovations driving the energy industry forward.

IN THIS ISSUE:

Connecticut Passes Legislation Targeting 1 GW Energy Storage by 2030
FERC to Establish Federal-State Task Force Addressing Electric Transmission Issues
NRG Energy Announces Retirement of Three More Coal-Fired Facilities
IKEA and Rockefeller Foundations Pledge $1 Billion to Support Distributed Energy Development

READ VOLUME 92

Subscribe to The Energizer

The Energizer – Volume 90

Jun 03 2021

By: Buck B. Endemann, Daniel S. Cohen, Molly K. Barker, Natalie J. Reid, Matthew P. Clark, Nathan C. Howe, Maeve C. Tibbetts, Oretha A. Manu

IN THIS ISSUE:

Twinning Nuclear Reactors with Machine Learning
FERC Invites Post-Technical Conference Comments on RTO/ISO Credit Practices
University of Illinois Will Soon Complete Final Phase of Solar Farm 2.0 Project
Spain Passes Carbon Neutrality Legislation that Bans Fossil Fuel Vehicles from Circulation within Nation’s Borders by 2050

READ VOLUME 90

Subscribe to The Energizer