September 28, 2024
Federal Briefs
High Court to Consider Demand Response Challenge April 24
This week's FERC and federal briefs include news on the Supreme Court, the Fish & Wildlife Service, the Nuclear Regulatory Commission and the EPA.

The U.S. Supreme Court will consider the Federal Energy Regulatory Commission’s appeal of a ruling voiding its authority over demand response in its conference April 24. At least four of the nine justices must agree to hear the case (14-840) for it to proceed.

FERC filed a petition for a writ of certiorari in January, contending that the D.C. Circuit Court of Appeals erred in its 2014 ruling (Electric Power Supply Association v. Federal Energy Regulatory Commission) that FERC lacked authority under the Federal Power Act to regulate energy market payments to DR providers.

The ruling, which voided FERC Order 745, was limited to the energy markets. But some stakeholders say the ruling also invalidates the commission’s regulation of DR in capacity markets. On March 31, FERC rejected as premature PJM’s proposed contingency plan for including demand response in its May Base Residual Auctions in the event the D.C. Circuit’s ruling is allowed to stand. (See FERC: PJM Demand Response Stop-gap Measure ‘Premature’.)

More: 14-840

Wisconsin Energy Takeover of Integrys Gets OK from FERC

The Federal Energy Regulatory Commission on April 7 approved Wisconsin Energy Corp.’s $9.1 billion acquisition of Integrys Energy Group.

Wisconsin Energy is the parent of electric utility We Energies. Integrys owns the Green Bay-based electric-natural gas utility Wisconsin Public Service Corp., along with Peoples Gas.

FERC dismissed concerns raised by a consortium of municipal electric utilities that contend that the merged companies would have undue influence over American Transmission Co., noting the new Wisconsin-based utility giant plans to limit voting rights in ATC.

The deal still requires the approval of four states: Wisconsin, Michigan, Minnesota and Illinois.

More: Milwaukee Journal Sentinel

Feds Consider Rules that Would Protect Bats, Hobble Wind Farms

Fish&WildlifeBatsSourceFish&WildlifeThe U.S. Fish and Wildlife Service is studying whether it needs to modify some rules protecting the Northern long-eared bat in a move that could affect wind farms. The agency announced that it would list the species as threatened.

The designation could result in regulations increasing the wind speed at which turbines are allowed to start producing energy on the theory that fewer bats will be flying when wind speeds are high. The agency is taking comments on the proposed rule changes and is expected to finalize the rules by the end of the year.

More: Midwest Energy News

NRC Approves Use of Hotter Fuel Rods at FirstEnergy’s Perry Plant

FirstEnergyPerryPlanSourceFirstEnergyA new type of fuel rod that has thinner metal walls encasing enriched uranium has been approved for use at FirstEnergy’s Perry nuclear generating station. The Nuclear Regulatory Commission has approved the use of the fuel rods, which should result in an increase of energy production while allowing use of less enriched uranium.

FirstEnergy is replacing about a third of the 748 fuel rod assemblies during the current refueling outage. Opponents to the plan say that the thinner fuel rod walls could present a problem moving the fuel rods in the decades to come after the rods are exhausted. NRC is currently testing the rods for long-term storage issues.

More: The Cleveland Plain Dealer

Group Says RGGI Could be Way to Meet Emissions Mandates

RGGISourceRGGIA New England nonprofit energy policy group has released a report that says joining the Regional Greenhouse Gas Initiative could provide a solution for Virginia to meet upcoming federal emission reduction mandates. The Acadia Center said that by joining the nine states already participating in RGGI, Virginia could have a “plug-and-play” way of satisfying the requirements of the Environmental Protection Agency’s Clean Power Plan.

“Virginia could build on this existing foundation by adopting the RGGI model rule, which would allow the commonwealth to participate in the market while preserving authority and enforcement at the state level,” according to the report.

“RGGI has been successful in the states that currently participate. It is helping to reduce carbon emissions, while offering a demonstrated record of advancing economic development, and saving consumers money on energy,” said Daniel L. Sosland, Acadia Center president.

It isn’t clear how much support such a move would have in Virginia. A bill calling for Virginia to join the RGGI never got past committee earlier this year in Virginia’s Republican-controlled legislature.

Nine states currently participate in the RGGI: New York, Maryland, Massachusetts, Maine, Delaware, New Hampshire, Rhode Island, Connecticut and Vermont. New Jersey was a member, but Gov. Chris Christie pulled the state out two years ago.

More: Acadia Center

PPL Gets Approval for Transfer of Nuclear Asset to Talen

The Nuclear Regulatory Commission has approved the transfer of PPL’s Susquehanna Steam Electric Station nuclear plant operating licenses to a new merchant generation company, Talen Energy. PPL is spinning off most of its generation, which will be combined with assets owned by Riverstone Holdings, to form Talen. The new company will be an unregulated, competitive generation supplier. Allegheny Electric Coop. has a minority ownership share of the two-unit plant.

The Federal Energy Regulatory Commission and the state Public Utility Commission have approved various filings relating to the Talen spinoff. Final approval is still needed from the U.S. Department of Justice under the Hart-Scott-Rodino Antitrust Improvements act. PPL still says it expects to close the transaction by the end of June.

More: PPL

Compiled by Ted Caddell

Energy StorageFERC & Federal

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