By Robert Mullin

Decked out in a New England Patriots jersey to commemorate her beloved team’s Super Bowl victory, FERC Commissioner Cheryl LaFleur on Thursday also celebrated the workaday process behind a new rule clarifying the commission’s 2018 directive to improve the generator interconnection process.

LaFleur said the “highly technical rule” clarifying Order 845 brought to mind former Commissioner Robert Powelson’s emphasis on the importance of the commission’s work doing “the boring good” (RM17-8-001, Order 845-A).

“These sorts of technical rules are a big part of the way this commission is working to help adapt to all the changes in resources on the grid — particularly renewables and storage coming on, as well as changes in ownership structures of who is developing and who is doing work on the grid.”

The ruling came in response to 12 requests for rehearing or clarification related to Order 845, the rules issued last April to increase the transparency and speed of the interconnection process. (See FERC Order Seeks to Reduce Time, Uncertainty on Interconnections.) While the majority of the that order — originating in a request by the American Wind Energy Association — remains intact, Thursday’s decision provides a bevy of updates, including the following:

• Requiring transmission providers to explain why they do not consider a specific network upgrade to be a standalone network upgrade, while also allowing them to recover option-to-build oversight costs;
• Clarifying that the Order 845 option-to-build provisions apply to all public utility transmission providers, including those that reimburse interconnection customers for network upgrades, and that the option to build does not apply to standalone network upgrades on affected systems;
• Granting rehearing on a provision to create a surplus interconnection service process, explaining the commission did not intend to limit the ability of RTOs and ISOs to argue variations are appropriate;
• Clarifying transmission providers may use FERC’s critical energy/electric infrastructure information (CEII) regulations as a model for evaluating entities that request network model information and assumptions;
• Clarifying the phrase “current system conditions” does not require transmission providers to maintain network models that reflect current real-time operating conditions of the transmission provider’s system but that should reflect the system conditions currently used in interconnection studies;
• Clarifying the reporting requirements do not require transmission providers to post 2017 interconnection study metrics, with the first report expected for the first quarter of 2020;
• Granting rehearing in part to find that an interconnection customer may propose control technologies at any time at which it is permitted to request interconnection service below generating facility capacity; and
• Clarifying a transmission provider must provide a detailed explanation if it determines additional studies at the full generating facility capacity are necessary when the interconnection customer has requested service below full capacity.

Thursday’s order denied all other requests for rehearing and clarification.

Responding to a question from LaFleur, Kathleen Ratcliff, of FERC’s Office of Energy Market Regulation, said she thought the most recent order “balanced the interests” of interconnection customers and transmission providers and “appropriately considers” the concerns of both.

“I think Order 845 was an important step forward to help improve interconnection processes and facilitate interconnection of technologies like storage. This starts the clock for [RTOs and ISOs] submitting compliance filings,” FERC Chairman Neil Chatterjee said.

While acknowledging the changes announced Thursday will help transmission customers “better utilize interconnection processes and ultimately make more efficient use of existing transmission grids,” Commissioner Richard Glick said, “the job is not complete.”

“We still have important work to do, especially as we consider reform related to affected systems coordination as we review each compliance filing to today’s rule.”

Other Rules

Under its consent agenda, FERC adopted a rule updating its regulations on when an applicant who would otherwise require commission authorization to hold an interlocking position between a public utility and financial company “need not do so” (RM18-15).

Under the changes, an applicant for an interlocking position between a utility and a “bank, trust company, banking association or firm that is authorized by law to underwrite or participate in the marketing of public utility securities” will not require FERC authorization when:

• the applicant does not participate in any of the utility’s deliberations or decisions regarding the selection of the bank, trust company, banking association or firm to underwrite or participate in the marketing of securities for the public utility;
• the firm of which the person is an officer or director does not engage in the underwriting of, or participate in the marketing of, securities of the utility of which the person holds the position of officer or director;
• the utility for which the utility serves or proposes to serve as an officer or director selects underwriters by competitive procedures; or
• the issuance of the utility’s securities has been approved by all federal and state regulatory agencies having jurisdiction.

Another rule adopted Thursday stipulates the commission will no longer review corporate mergers valued at less than $10 million (RM19-4). The rule will also require public utilities valued above $1 million to notify FERC regarding mergers and consolidations. The rulemaking implements Congress’ direction under an amendment to Section 203 of the Federal Power Act, the commission has said.