The big news of 2014 in PJM was the same subject that’s likely to be big news in 2015: the capacity market.
Of RTO Insider’s 25 most-read stories of 2014, seven were about PJM capacity market rule changes or the results of the May Base Residual Auction.
With PJM seeking to overhaul the market with its Capacity Performance proposal — now pending before the Federal Energy Regulatory Commission — capacity issues are sure to be among the top stories for RTO Insider in the coming year. (See PJM Files Capacity Performance Plan.)
Speaking of FERC, four stories about FERC enforcement and commissioner confirmations also ranked in the top 25. The dynamics of the five-member commission will be fascinating to watch in 2015, with the arrival of new commissioner Colette Honorable and Chairman Cheryl LaFleur and Commissioner Norman Bay swapping seats in April. (See stories No. 2 and No. 18 below.)
DR, M&A, EPA
Demand response, mergers and acquisitions, Environmental Protection Agency regulations and the Artificial Island stability fix each claimed two spots on the list.
The EPA will be the subject of much coverage this year as its Mercury and Air Toxics Standards (MATS) force thousands of megawatts of coal-fired generation into retirement, and as it finalizes its carbon emissions rule in June. Legal challenges to the rule, which have already begun, will surely increase traffic at the D.C. Circuit Court of Appeals.
It was that court that roiled the demand response industry last year with a ruling voiding FERC jurisdiction over pricing of DR in wholesale energy markets, a decision FERC is hoping the Supreme Court will reconsider. (See related story, FERC Report Shows Spotty Growth for DR, Advanced Meters.)
The mergers and acquisitions that were big news in 2014 also will generate headlines this year as they make their way through the regulatory approval process. Among the most prominent: PPL’s spin-off of its generation in a combination with Riverstone Holdings; Exelon’s purchase of Pepco Holdings Inc.; Wisconsin Energy’s acquisition of Integrys Energy Group (with Exelon taking on Integrys’ retail power and gas subsidiary); Dynegy’s acquisition of generation from Duke Energy and Energy Capital Partners; and Constellation combining its commercial and industrial demand response business with Comverge.
PJM had hoped that the selection of a transmission developer for the Artificial Island fix — its first competitive transmission project under FERC Order 1000 — would be completed last summer. But controversy over PJM planners’ selection of Public Service Electric and Gas led the PJM Board of Managers to reopen the bidding for four finalists. Planners hope to present a final recommendation to the Transmission Expansion Advisory Committee in a few weeks. (See PSEG Nuclear Calls on PJM Board to Block ‘Risky’ Artificial Island Fix.)
RTO Insider’s Expansion
While we’ll be writing about a lot of the same issues in 2015, we’ll be doing so with an expanded reporting staff and geographic focus as we deepen our coverage in MISO, SPP, NYISO and ISO-NE.
With this issue, we are expanding our state briefs column to include the 11 MISO states not shared with PJM. Welcome to Arkansas, Louisiana, Mississippi, Missouri, Texas, Iowa, Minnesota, Montana, Wisconsin and the Dakotas — both of them!
Ten of those states are also shared by SPP. We’ll be adding the four states in the rest of SPP’s footprint, along with New York and the states in ISO-NE, later this year.
Welcome to Cruthirds Report Readers
We’ll be doing it with a much larger audience, thanks to our agreement to supply the unexpired subscriptions of The Cruthirds Report. Sadly, The Cruthirds Report ceased operations in December after 11 years of covering Entergy, Southern Co. and the electric industry in the Southeast.
Happily, its founder, former Dynegy regulatory attorney David L. Cruthirds, has agreed to continue raising hell with his observations as a columnist for RTO Insider. You’ll see his introductory column on page 1 of today’s issue.
David also will be writing from the Louisiana Public Service Commission’s monthly Business & Executive meeting in Baton Rouge on Jan. 21 and the Gulf Coast Power Association’s one-day briefing on “Challenges & Changes in Energy on the Bayou” in New Orleans on Feb. 5. The GCPA event will include a discussion on how the MISO South market has worked in the first year and what challenges lie ahead.
David is an outspoken advocate for competition, fairness and transparency. You may not agree with David’s opinions, but you’ll never have a question about where he stands.
We are thrilled to add David’s voice and loyal readers as we continue to build RTO Insider as your eyes and ears in the organized electric markets. Whether it happens in Valley Forge, Washington, Albany or Carmel — RTO Insider will be there bringing you exclusive “in the room” coverage.
Thanks for your support in 2014. Here’s to a great 2015!
Rich Heidorn Jr. and Merry Eisner
RTO Insider’s Top 25 Most-Read Stories of 2014
