By Rich Heidorn Jr.

FERC on Thursday rejected PPL’s request for a finding that it is no longer covered by the commission’s Standards of Conduct rules restricting communications between its transmission and marketing functions (TS16-2).

FERC’s Standards of Conduct require transmission-function employees to operate independently from marketing staff to prevent preferential access to nonpublic transmission, customer or market information.

PPL contended that the rules should no longer apply to its PPL Electric Utilities subsidiary — a transmission owner and load-serving entity in PJM — because it spun off its competitive generation to Talen Energy last year. Thus, it said, it no longer conducts transmission transactions with an affiliate that engages in marketing functions.

But the commission ruled that PPL Electric continues to have a marketing function because it sells excess electricity in its role as provider of last resort for customers who don’t choose a competitive retail supplier.

“The fact that PPL Electric is a ‘price taker’ for the balancing sales to PJM is not relevant to the determination whether sales for resale in interstate commerce are jurisdictional activities under Section 205 of the Federal Power Act,” the commission said.

FERC said that the company could request a waiver from the standards by showing that it does not control its transmission system and has relinquished access to nonpublic transmission information.

But PPL spokesman Joe Nixon said the company will not seek a waiver. “Consequently, we will continue the training and other requirements imposed by FERC’s Standards of Conduct to wall off transmission function information from marketing functions,” he said.

FERC rejected PPL’s contention that its current operations were similar to those of Hudson Transmission Partners, which the commission exempted from the standards in a 2014 order.

Hudson Partners, which owns an 8-mile long transmission line connecting PJM and NYISO, has turned over control of the line to PJM. But unlike PPL, it does not participate in any energy markets and has not obtained authority to make wholesale sales of power, FERC said.