Federal Energy Regulatory Commission

Last updated
Federal Energy Regulatory Commission
Seal of the United States Federal Energy Regulatory Commission.svg
Seal of the United States Federal Energy Regulatory Commission
Agency overview
FormedOctober 1, 1977;47 years ago (1977-10-01)
Preceding agency
Jurisdiction U.S. government
Headquarters Washington, D.C., U.S.
Agency executive
Parent department United States Department of Energy
Website www.FERC.gov

The Federal Energy Regulatory Commission (FERC) is an independent agency of the United States government that regulates the interstate transmission and wholesale sale of electricity and natural gas and regulates the prices of interstate transport of petroleum by pipeline. FERC also reviews proposals to build interstate natural gas pipelines, natural gas storage projects, and liquefied natural gas (LNG) terminals, in addition to licensing non-federal hydropower projects.

Contents

FERC was created by the U.S. Congress in 1977 in the aftermath of the 1973 oil crisis. FERC is an independent agency, despite being part of the U.S. Department of Energy. It is headed by five commissioners who are nominated by the U.S. president and confirmed by the U.S. Senate. There may be no more than three commissioners of one political party serving on the commission at any given time. [1]

Primary duties

The responsibilities of FERC include the following:

Jurisdiction and authorities

FERC is a large independent regulatory agency, within the United States Department of Energy, that participates in business oversight. [2] : 12  The President and Congress do not generally review FERC decisions, but the decisions are reviewable by the federal courts. FERC is self-funding, in that Congress sets its budget through annual and supplemental appropriations and FERC is authorized to raise revenue to reimburse the United States Treasury for its appropriations, through annual charges to the natural gas, oil, and electric industries it regulates. [3]

FERC is independent of the Department of Energy political structure because FERC activities "shall not be subject to further view by the Secretary [of Energy] or any officer or employee of the Department". [4] The Department of Energy can, however, participate in FERC proceedings as a third party.

FERC has promoted voluntary formation of regional transmission organizations (RTOs) and Independent System Operators (ISOs) to eliminate the potential for undue discrimination in access to the electric grid; it has made key decisions expanding its own power in regional and interregional transmission planning and cost allocation through the landmark Order Nos. 1000, 1920, 1977, and 2023.

FERC investigated the alleged manipulation of electricity market by Enron and other energy companies, and their role in the California electricity crisis. FERC has collected more than $6.3 billion from California electric market participants through settlements. [5] Since passage of the Energy Policy Act of 2005, FERC has imposed, through settlements and orders, more than $1 billion in civil penalties and disgorgement of unjust profits to address violations of its anti-market manipulation and other rules.

FERC regulates approximately 1,600 hydroelectric projects in the U.S. It is largely responsible for permitting construction of a large network of interstate natural gas pipelines. FERC also works closely with the United States Coast Guard to review the safety, security, and environmental impacts of proposed LNG terminals and associated shipping.

Commissioners

FERC is composed of up to five commissioners who are appointed by the President and confirmed by the Senate to staggered five-year terms. The President appoints one of the commissioners to be the chairman of FERC, the administrative head of the agency. FERC is a bipartisan body; no more than three commissioners may be of the same political party. Commissioners may continue in office past the end of their term if a successor has not yet been confirmed, up to the end of the current session of Congress. The commissioners are:

NamePartyTook officeTerm expires
Willie L. Phillips (Chair)DemocraticDecember 3, 2021June 30, 2026
Mark Christie RepublicanJanuary 4, 2021June 30, 2025
David Rosner DemocraticJune 17, 2024June 30, 2027
Lindsay See RepublicanJune 28, 2024June 30, 2028
Judy Chang DemocraticJuly 15, 2024June 30, 2029

Past commissioners

Commissioners [6] Years Served
Don S. Smith December 13, 1973 – June 30, 1979 (Served as FPC)
Charles B. Curtis August 10, 1977 – December 31, 1980
Georgiana Sheldon August 11, 1977 – July 19, 1985
Matthew Holden, Jr. October 28, 1977 – August 31, 1981
George R. Hall October 28, 1977 – May 8, 1981
J. David Hughes September 8, 1980 – July 13, 1984
C.M. Butler III June 5, 1981 – October 7, 1983
Anthony G. Sousa September 1, 1981 – July 30, 1988
Oliver G. Richard III August 31, 1982 – July 12, 1985
Raymond J. O'Connor November 10, 1983 – January 31, 1986
Charles G. Stalon July 14, 1984 – November 10, 1989
C.M. Naeve November 4, 1985 – April 30, 1988
Charles A. Trabandt November 4, 1985 – March 31, 1993
Martha O. Hesse October 6, 1986 – November 28, 1989
Jerry J. Langdon October 4, 1988 – June 5, 1993
Elizabeth Anne Moler October 7, 1988 – June 16, 1997
Martin L. Allday November 13, 1989 – October 20, 1993
Branko Terzic October 20, 1990 – May 24, 1993
James J. Hoecker May 20, 1993 – January 18, 2001
Donald F. Santa, Jr. May 20, 1993 – June 30, 1997
William L. Massey May 20, 1993 – December 9, 2003
Vicky A. Bailey May 20, 1993 – January 28, 2000
Curtis L. Hebert Jr. November 14, 1997 – August 31, 2001
Linda Key Breathitt November 13, 1997 – November 22, 2002
Patrick H. Wood III June 5, 2001 – July 8, 2005
Nora Mead Brownell June 12, 2001 – July 21, 2006
Joseph T. Kelliher November 21, 2003 – March 13, 2009
Suedeen G. Kelly November 24, 2003 – December 24, 2009
Marc Spitzer July 21, 2006 – December 14, 2011
Jon Wellinghoff July 31, 2006 – November 24, 2013
Philip D. Moeller July 24, 2006 – October 30, 2015
John R. Norris January 11, 2010 – August 20, 2014
Cheryl LaFleur July 13, 2010 – August 30, 2019
Tony Clark June 15, 2012 – September 30, 2016
Norman Bay August 4, 2014 – February 3, 2017
Colette D. Honorable January 5, 2015 – June 30, 2017
Robert Powelson August 10, 2017 – August 10, 2018
Kevin J. McIntyre December 7, 2017 – January 2, 2019
Neil Chatterjee August 8, 2017 – August 30, 2021
Richard Glick November 29, 2017 – January 3, 2023
Bernard L. McNamee December 11, 2018 – September 4, 2020
James Danly March 30, 2020 – January 3, 2024
Allison Clements December 8, 2020 – June 30, 2024

Chairmen

Chairmen [7] Years Served
Charles B. Curtis October 1, 1977 – January 1, 1981
Georgiana Sheldon (Acting)January 2, 1981 – June 5, 1981
C.M. Butler III June 5, 1981 – October 5, 1983
Raymond J. O'Connor November 10, 1983 – January 31, 1986
Anthony G. Sousa (Acting)February 1, 1986 – October 5, 1986
Martha O. Hesse October 6, 1986 – November 19, 1989
Martin L. Allday November 21, 1989 – February 5, 1993
Elizabeth Anne Moler February 5, 1993 – June 16, 1997
James J. Hoecker June 19, 1997 – January 18, 2001
William L. Massey January 19, 2001 – January 21, 2001
Curtis L. Hebert Jr. January 22, 2001 – August 31, 2001
Patrick H. Wood III September 1, 2001 – July 8, 2005
Joseph T. Kelliher July 9, 2005 – January 23, 2009
Jon Wellinghoff (Acting)January 23, 2009 – March 19, 2009
Jon Wellinghoff March 19, 2009 – November 24, 2013
Cheryl LaFleur (Acting)November 25, 2013 – July 30, 2014
Cheryl LaFleur July 30, 2014 – April 14, 2015
Norman Bay April 15, 2015 – January 23, 2017
Cheryl LaFleur (Acting)January 23, 2017 – August 10, 2017
Neil Chatterjee August 10, 2017 – December 7, 2017
Kevin J. McIntyre December 7, 2017 – October 24, 2018
Neil Chatterjee October 24, 2018 – November 5, 2020
James Danly November 5, 2020 – January 21, 2021
Richard Glick January 21, 2021 – January 3, 2023
Willie L. Phillips (Acting)January 3, 2023 – February 9, 2024
Willie L. Phillips February 9, 2024 – present

History

Federal Power Commission

The Federal Power Commission (FPC), which preceded FERC, was established by Congress in 1920 to allow cabinet members to coordinate federal hydropower development.

In 1935, the FPC was transformed into an independent regulatory agency with five members nominated by the President and confirmed by the Senate. The FPC was authorized to regulate both hydropower and interstate electricity.

Natural Gas Act of 1938

In 1938, the Natural Gas Act gave FPC jurisdiction over interstate natural gas pipelines and wholesale sales. In 1942, this jurisdiction was expanded to cover the licensing of more natural gas facilities. In 1954, the Supreme Court decision in Phillips Petroleum Co. v. Wisconsin extended FPC jurisdiction over all wellhead sales of natural gas in interstate commerce.

Birth of DOE; FPC Becomes FERC

In response to the 1973 oil crisis, Congress passed the Department of Energy Organization Act in 1977, to consolidate various energy-related agencies into a Department of Energy. Congress insisted that a separate independent regulatory body be retained, and the FPC was renamed the Federal Energy Regulatory Commission (FERC), preserving its independent status within the department. [8] Its most basic mandate was to "determine whether wholesale electricity prices were unjust and unreasonable and, if so, to regulate pricing and order refunds for overcharges to ratepayers." [9] FERC was also given added responsibility to hear appeals of DOE oil price control determinations and to conduct all "on the record" hearings for DOE. [10] As a result, DOE does not have any administrative law judges. As a further protection, when the Department of Energy proposes a rule, it must refer the proposal to FERC, and FERC can take over the proceeding if FERC determines that the rulemaking "may significantly affect" matters in its jurisdiction. [11] The DOE Act also transferred the regulation of interstate oil pipelines from the Interstate Commerce Commission to FERC. [12] However, the FERC lost some jurisdiction over the imports and exports of gas and electricity.

In 1978, FERC was given additional responsibilities for harmonizing the regulation of wellhead gas sales in both the intrastate and interstate markets. FERC also administered a program to foster new cogeneration and small power production under the Public Utilities Regulatory Policy Act of 1978, which was passed as part of the National Energy Act of 1978. The National Energy Act included the Natural Gas Policy Act of 1978, which reduced the scope of federal price regulation, to bring greater competition to both the natural gas and electric industry.

In 1989, Congress ended federal regulation of wellhead natural gas prices, with the passage of the Natural Gas Wellhead Decontrol Act of 1989. [13]

Order No. 888

In 1996, FERC issued Order No. 888, which spurred the creation of regional transmission organizations in the United States. This would impact existing electric power pools by rebranding themselves as independent transmission operators. Electric utilities in some regions began to spin off their generation units as separate companies that would compete in a wholesale electric market administered by the RTOs. [14] Once FERC had created the framework for Regional Transmission Organizations with Order No. 888, several such RTOs were approved. The pre-existing multi-state power pool called PJM (Pennsylvania, Jersey, Maryland), the New York Independent System Operator (NYISO), and the Independent Sysoperator New England (ISO-NE) were early adopters. California, with the backing of its state and Congressional policymakers, sought approval of a controversial scheme to set up its ISO, called California ISO, based near Sacramento, CA. FERC approved it without changes because California had warned that it would not accept any changes. Enron charged one of its policy analysts to figure out how to make the most of the flawed rules put in place for the California electricity market. Enron had success with its fraudulent market transactions.

Energy Policy Act of 2005

In 2001, the George W. Bush administration sought to give the authority of eminent domain to FERC to circumvent state and local bureaucratic processes which often slowed the siting of new transmission projects. This expansion of power was most fiercely opposed by Bush's own Republican party as being an expansion of federal power. Legal battles over the issue ended with the 2005 Energy Bill (Energy Policy Act of 2005) which was passed with approval of Democrats and Republicans.

The Energy Policy Act of 2005 expanded FERC's authority to protect the reliability and cybersecurity of the bulk power system through the establishment and enforcement of mandatory standards, as well as greatly expanding FERC authority to impose civil penalties on entities that manipulate the electricity and natural gas markets. The Energy Policy Act of 2005 also gave FERC additional responsibilities and authority. Among the many provisions of the law, FERC was given what is known as "backstop" siting authority which allows FERC to overrule any denial of transmission projects by a state within established corridors of transmission congestion "to expand transmission in limited regions of the country facing transmission constraints." [15] [16]

Order No. 1000

In 2010, FERC issued Order No. 1000, which required RTOs to create regional transmission plans and identify transmission needs based on public policy. Cost allocation reforms were included, possibly to reduce barriers faced by non incumbent transmission developers. [17]

Order No. 841

In February 2018, FERC issued Order No. 841, which required wholesale markets to open up to individual storage installations, regardless of interconnection point (transmission, distribution or behind-the-meter). [18] [19] The Order was challenged in court by the state public utility commissions via the National Association of Regulatory Utility Commissioners (NARUC), the American Public Power Association, and others who claimed that FERC overstepped its jurisdiction by regulating how local electric distribution and behind-the-meter facilities are administered, i.e., in not providing an opt out of wholesale market access for energy storage facilities located at the distribution level or behind-the-meter. A United States courts of appeals court (the D.C. Circuit) issued an order in July 2020 that upheld Order 841 and dismissed the petitioners' complaints. [20] [21] [22]

Order No. 2222

FERC issued Order No. 2222 on September 17, 2020, enabling distributed energy resources such as batteries and demand response to participate in regional wholesale electricity markets. [23] [24] Market operators submitted initial compliance plans by early 2022. [25] The Supreme Court had ruled in 2016 in FERC v. Electric Power Supply Ass'n that the agency had the authority to regulate demand response transactions. [26]

Order No. 2023

On July 28, 2023, the Federal Energy Regulatory Commission issued Order No. 2023, which regulates the interconnection process that ties renewables projects into the large-scale grid. Among other provisions, the rule requires transmission planners to consolidate projects into 'clusters' for regulatory approval purposes on a 'first-ready, first-served' basis that prioritizes the most well-studied and fully financed projects, forecast advanced technologies, and allow for multiple projects to share a new single interconnection point. It also "imposes firm deadlines and penalties if transmission providers fail to complete interconnection studies on time". [27]

Order Nos. 1920 and 1977

On May 13, 2024, FERC issued Order Nos. 1920 and 1977. The former order requires utilities to plan 20 years in advance to anticipate future regional (though not interregional) transmission needs, with five-year updates, and to cooperate in creating a default cost-sharing plan to deliver to state regulators. It "provides for cost-effective expansion of transmission that is being replaced, when needed, known as 'right-sizing' transmission facilities", and it allows states more opportunities to cooperate with utility companies and energy project developers, while preventing states that benefit from regional transmission projects from not paying for them. [28] [29] [30] FERC Order No. 1920-A, an amendment to it passed unanimously the following November, allows state regulators even more opportunities to provide input on interstate grid projects, adds six months to the cost allocation negotiating process, and gives utilities more leeway to forecast additional needs scenarios. [31] [32]

The latter order affirms FERC's siting authority in National Interest Electric Transmission Corridors if a state regulatory agency denies any of its own siting responsibility thereof. The order creates an Applicant Code of Conduct to encourage proper landowner outreach, and adds air quality, environmental justice and tribal engagement reports to the list of requirements for project applicants. [33]

Criticism

FERC has been subject to criticism and increasing activism by people from communities affected by its decisions approving pipeline and related projects. [34] They contend that FERC "blithely greenlights too many pipelines, export terminals and other gas infrastructure" [34] and that FERC's structure in which it recovers its annual operating costs directly from the entities it regulates creates bias in favor of the issuance of pipeline certificates. [35] Some of the critics have disrupted several regular open meetings of the Commission [36] and staged a couple of week-long blockades of FERC's headquarters in Washington, D.C., to make their points. [37] "Pipelines are facing unprecedented opposition," Commissioner LaFleur remarked to the National Press Club in a 2015 speech. "We have a situation here." [38] [39] [40]

FERC's decisions in those cases are often upheld by the courts. In a July 1, 2014, decision, No Gas Pipeline v. Federal Energy Regulatory Commission, the United States Court of Appeals for the District of Columbia Circuit (D.C. Circuit) said that pipeline applicants are not likely to pursue many certificates that are hopeless. "The fact that they generally succeed in choosing to expend their resources on applications that serve their own financial interests does not mean that an agency which recognizes merit in such applications is biased," the court said. [41] Others have directly disputed FERC's critics by pointing out, "FERC is a creature of law. It follows a careful administrative path to regulate only a portion of natural gas such as interstate pipelines and LNG import and export terminals. That regulation includes extensive environmental review, driven by many federal laws enacted by Congress, signed by the president, and reviewed and upheld by the U.S. Supreme Court. If the agency were to adopt the path [suggested by these critics], FERC's decisions would routinely be overturned by the federal courts." [42]

The United States District Court for the District of Columbia also dismissed a case involving allegations of structural bias on the part of FERC. The plaintiffs contended that the Omnibus Budget Act of 1986 funding mechanism requires the commission to recover its budget through proportional charges on regulated entities, therefore making FERC biased in favor of the industry from which it gets its funding. But in an order issued March 22, 2017, the court said the plain language of the statute indicates that FERC does not have control over its own budget. "The Commission's budget cannot be increased by approving pipelines; rather, [the statute] requires the Commission to make adjustments to 'eliminate any overrecovery or underrecovery.' If Plaintiffs are unhappy with Congress's chosen appropriations to the Commission..., Plaintiffs' recourse lies with their legislative representatives." [35]

In New Jersey, the FERC approval of the PennEast Pipeline was met with widespread criticism by environmental groups, which called the decision highly partisan. "FERC has once again demonstrated its tremendous bias for, and partnership with, the pipeline industry," said Maya van Rossum, leader of the Delaware Riverkeeper Network. Doug O'Malley, president of Environment New Jersey, called the FERC approval of the pipeline a "disaster." David Pringle, state campaign director of Clean Water Action and 2018 Congressional candidate, suggested the FERC was serving a partisan interest over the interests of the people of New Jersey, suggesting "The FERC needs to remember it works for the people of the United States not PennEast." [43] These criticisms were unfounded as the D.C. Circuit Court of Appeals on July 10, 2018, rejected the Delaware Riverkeeper Network and Maya Van Rossum's claim that FERC has an incentive to award pipeline certificates because it collects its operating expenses from regulated parties. Upholding a lower court ruling, the D.C. Circuit also rejected the Delaware Riverkeeper Network's challenge to FERC's use of tolling orders to meet its statutory deadlines for acting on rehearing applications. [44]

However, the D.C. Circuit has provided additional guidance concerning Commission procedures, stating that in one case FERC failed to consider the cumulative environmental impact of four projects that had been separately proposed by the same pipeline. The D.C. Circuit held that the projects were not financially independent and were "a single pipeline" that was "linear and physically interdependent," so the cumulative environmental impacts should have been considered concurrently. [45] In a separate decision, the D.C. Circuit later sustained the commission's conduct of separate environmental assessments when it clarified that the "critical" factor was that all of the pipeline's projects were either under construction or pending before FERC for environmental review at the same time, noting that the projects lacked temporal overlap. [46] Furthermore, in another case, the D.C. Circuit sustained the commission's use of a separate environmental assessment when it reasoned that the projects in dispute were "unrelated" and did not depend on one another for their justification. [47] This guidance has allowed FERC to address additional claims of improper segmentation. [48]

FERC's leaders have stressed many times since the onset of the increased activism that the proper way to oppose a proposed new infrastructure project is by participating in the related proceeding by submitting comments and participating in public comment sessions, site visits and scoping meetings, since FERC decisions can be appealed up to the Supreme Court.

Federal versus state authority

There are regions of the country where the state public utility commission and the FERC regulated Regional Transmission Organization operate in identical footprints (such as in New York State). Where this occurs, state policy makers and FERC frequently clash as to the extent of federal power and influence within the state.

The planning and siting of public policy and renewable power plants and merchant transmission lines can be contentious, because the planning process must proceed through both entities. For example, in New York State, any large (more than 20 MW for the NYISO or 2 MW for the state Siting Committee) generation or merchant transmission facility must proceed through both the planning process of the NYISO, which operates on a two-year cycle at minimum with an inclusive class year pool of new projects evaluated simultaneously, and the siting process of the state Board on Electric Siting and the Environment. Prior to the formation of the NYISO, the planning process was determined mostly by the state siting board (although the utilities' power pool might have had its own closed door planning session) and large generation projects were developed by the utilities themselves. [49] [50] The dual planning process provides an opportunity for other market participants to drag out the process legally, not including the other state and/or federal environmental, trade (if an international connection with Canada is requested), and local certification and regulation processes that need to be met.

The controversy similarly applies to various electric wholesale-market issues within the RTO, when a state public utility commission asserts that its retail ratepayers (under state regulation) will be impacted by wholesale-market stakeholder decisions and reforms (under federal-level regulation). In contrast, prior to the formation of the NYISO in 1999 in New York, wholesale energy prices were set within a utility's state rate case proceeding. Examples of contentious issues in New York include the NYISO's development of buyer-side mitigation (price floors) in its capacity market, [51] proxy peaking-unit specifications during the demand-curve reset (that helps set capacity market prices), [52] [53] the state's granting of zero-emissions credits to wholesale-market participating nuclear power plants, [54] and the creation of a new capacity zone amidst state and transmission owner policy initiatives.

See also

Related Research Articles

<span class="mw-page-title-main">Public utility</span> Entity which operates public service infrastructure

A public utility company is an organization that maintains the infrastructure for a public service. Public utilities are subject to forms of public control and regulation ranging from local community-based groups to statewide government monopolies.

<span class="mw-page-title-main">Electric power industry</span> Industry that provides the production and delivery of electric energy

The electric power industry covers the generation, transmission, distribution and sale of electric power to the general public and industry. The commercial distribution of electric power started in 1882 when electricity was produced for electric lighting. In the 1880s and 1890s, growing economic and safety concerns lead to the regulation of the industry. What was once an expensive novelty limited to the most densely populated areas, reliable and economical electric power has become an essential aspect for normal operation of all elements of developed economies.

Eversource Energy is a publicly traded, Fortune 500 energy company headquartered in Hartford, Connecticut, and Boston, Massachusetts, with several regulated subsidiaries offering retail electricity, natural gas service and water service to approximately 4 million customers in Connecticut, Massachusetts, and New Hampshire.

<span class="mw-page-title-main">Federal Power Act</span> American hydroelectricity legislation

The Federal Power Act is a law appearing in Chapter 12 of Title 16 of the United States Code, entitled "Federal Regulation and Development of Power". Enacted as the Federal Water Power Act on June 10, 1920, and amended many times since, its original purpose was to more effectively coordinate the development of hydroelectric projects in the United States. Representative John J. Esch (R-Wisconsin) was the sponsor.

<span class="mw-page-title-main">Public Utility Regulatory Policies Act</span> Part of the US federal law known as the National Energy Act

The Public Utility Regulatory Policies Act is a United States Act passed as part of the National Energy Act. It was meant to promote energy conservation and promote greater use of domestic energy and renewable energy. The law was created in response to the 1973 energy crisis, and one year in advance of a second energy crisis.

<span class="mw-page-title-main">Regional transmission organization (North America)</span> Electric power coordinator

A regional transmission organization (RTO) in the United States is an electric power transmission system operator (TSO) that coordinates, controls, and monitors a multi-state electric grid. The transfer of electricity between states is considered interstate commerce, and electric grids spanning multiple states are therefore regulated by the Federal Energy Regulatory Commission (FERC). The voluntary creation of RTOs was initiated by FERC in December 1999. The purpose of the RTO is to promote economic efficiency, reliability, and non-discriminatory practices while reducing government oversight.

<span class="mw-page-title-main">Energy policy of the United States</span>

The energy policy of the United States is determined by federal, state, and local entities. It addresses issues of energy production, distribution, consumption, and modes of use, such as building codes, mileage standards, and commuting policies. Energy policy may be addressed via legislation, regulation, court decisions, public participation, and other techniques.

<span class="mw-page-title-main">Southwest Power Pool</span> American power-grid non-profit in the central Southern US

Southwest Power Pool (SPP) manages the electric grid and wholesale power market for the central United States. As a regional transmission organization, the nonprofit corporation is mandated by the Federal Energy Regulatory Commission to ensure reliable supplies of power, adequate transmission infrastructure and competitive wholesale electricity prices. Southwest Power Pool and its member companies coordinate the flow of electricity across approximately 60,000 miles of high-voltage transmission lines spanning 14 states. The company is headquartered in Little Rock, Arkansas.

<span class="mw-page-title-main">Midcontinent Independent System Operator</span> Transmission system operator in the United States and Canada

The Midcontinent Independent System Operator, Inc., formerly named Midwest Independent Transmission System Operator, Inc. (MISO) is an Independent System Operator (ISO) and Regional Transmission Organization (RTO). It provides open-access transmission service and monitors the high-voltage transmission system in the Midwestern United States, in Manitoba, Canada, and in a southern U.S. region that includes much of Arkansas, Mississippi, and Louisiana. MISO also operates one of the world's largest real-time energy markets. The 15 states covered by MISO are: Arkansas, Illinois, Indiana, Iowa, Kentucky, Louisiana, Michigan, Minnesota, Mississippi, Missouri, Montana, North Dakota, South Dakota, Texas, and Wisconsin.

<span class="mw-page-title-main">Jon Wellinghoff</span>

Jon B. Wellinghoff is an American attorney who served as the chairman of the Federal Energy Regulatory Commission (FERC) from 2009 to 2013. The FERC is a U.S. government agency that regulates the interstate transmission of electricity, natural gas, and oil. The FERC also reviews proposals to build liquefied natural gas (LNG) terminals and interstate natural gas pipelines and licenses hydropower projects.

<span class="mw-page-title-main">ISO New England</span> Oversees the operation of New Englands bulk electric power system

ISO New England Inc. (ISO-NE) is an independent, non-profit regional transmission organization (RTO), headquartered in Holyoke, Massachusetts, serving Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont.

<span class="mw-page-title-main">PJM Interconnection</span> Major electric grid coordinator in northeastern USA

PJM Interconnection LLC (PJM) is a regional transmission organization (RTO) in the United States. It is part of the Eastern Interconnection grid operating an electric transmission system serving all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and the District of Columbia.

The United States has the second largest electricity sector in the world, with 4,178 Terawatt-hours of generation in 2023. In 2023 the industry earned $491b in revenue at an average price of $0.127/kWh.

Phillips Petroleum Co. v. Wisconsin, 347 U.S. 672 (1954), was a case decided by the Supreme Court of the United States holding that sale of natural gas at the wellhead was subject to regulation under the Natural Gas Act. Prior to this case, independent producers sold natural gas to interstate pipelines at unregulated prices with any subsequent sales for resale being regulated. The State of Wisconsin sought to close this regulatory loophole in order to keep consumer prices low. Natural gas producers argued that wellhead sales were exempt from federal regulation as "production and gathering." Below, the Federal Power Commission compiled an evidentiary record 10,000 pages long before deciding not to regulate wellhead sales. However, the courts reversed, and the case resulted in federal price controls on wellhead gas prices for the next 40 years.

<span class="mw-page-title-main">Natural Gas Act of 1938</span>

The Natural Gas Act of 1938 was the first occurrence of the United States federal government regulating the natural gas industry. It was focused on regulating the rates charged by interstate natural gas transmission companies. In the years prior to the passage of the Act, concern arose about the monopolistic tendencies of the transmission companies and the fact that they were charging higher than competitive prices. The passage of the Act gave the Federal Power Commission (FPC) control over the regulation of interstate natural gas sales. Later on, the FPC was dissolved and became the Federal Energy Regulatory Commission (FERC) pursuant to a different act. FERC continues to regulate the natural gas industry to this day.

Federal Power Commission v. Sierra Pacific Power Co., 350 U.S. 348 (1956), is a United States Supreme Court case in which the Court interpreted the Federal Power Act (FPA) as permitting the Federal Power Commission (FPC) to modify a rate specified in a contract between an electric utility and distribution company only upon a finding that the contract rate is unlawful because it adversely affects the public interest. Sierra Pacific and its companion case United Gas Pipe Line Co. v. Mobile Gas Service Corp. established the Mobile-Sierra doctrine, which holds that an electricity or natural gas supply rate established resulting from a freely negotiated contract is presumed to be "just and reasonable" and thus acceptable under the FPA or Natural Gas Act (NGA).

<span class="mw-page-title-main">Bernard McNamee</span> American lawyer

Bernard L. McNamee is an American attorney and former government official who served as Commissioner of the Federal Energy Regulatory Commission (FERC) from 2018 to 2020. Nominated to the position by President Donald Trump, McNamee was confirmed to the position by the United States Senate on December 6, 2018.

The Transmission Owner Transmission Solutions (TOTS) was a group of three electric power bulk transmission projects constructed on the New York bulk transmission system to increase transfer capability between Upstate New York and Downstate New York. The projects were in-service by June 2016. The projects were proposed by a consortium of the state's seven Investor-Owned Utility (IOU) companies in response to a New York State Public Service Commission (NYSPSC) appeal for Indian Point contingency plans in the event that the 2,060-MW Indian Point power facility were to retire. The shutdown of the Indian Point facility has been a policy goal of Governor Andrew Cuomo since before he began his administration in New York in 2011. The TOTS projects are estimated to have costed $240 million to construct. Construction costs were divided between the seven Transco utilities and the New York Power Authority (NYPA). The IOUs are receiving a 10% return on equity for construction of the projects which is being recovered through retail consumer rates approved by the NYSPSC.

References

  1. ↑ "Federal Power Act" (PDF). ferc.gov. p. 1. Retrieved September 11, 2024.
  2. ↑ Van Loo, Rory (2018-08-01). "Regulatory Monitors: Policing Firms in the Compliance Era". Faculty Scholarship. 119 (2): 369.
  3. ↑ "About FERC". Archived from the original on 8 April 2014. Retrieved 9 Apr 2014.
  4. ↑ 42 U.S.C. § 7172(g)
  5. ↑ "FERC: Addressing the 2000-2001 Western Energy Crisis". large.stanford.edu. Retrieved 2024-03-19.
  6. ↑ "Past Commissioners".
  7. ↑ "Past FERC Chairmen".
  8. ↑ 42 U.S.C. § 7134
  9. ↑ "Regulation - What Is Ferc? | Blackout | FRONTLINE". Pbs.org. Retrieved 2018-12-22.
  10. ↑ 42 U.S.C. § 7172(d).
  11. ↑ 42 U.S.C. § 7174.
  12. ↑ 42 U.S.C. §7172(b) (since repealed)
  13. ↑ "Statute" (PDF). Gpo.gov.
  14. ↑ "FERC: Landmark Orders - Order No. 888". Ferc.gov. Archived from the original on 19 December 2016. Retrieved 3 January 2019.
  15. ↑ U.S. Department of Energy (December 2009). "NATIONAL ELECTRIC TRANSMISSION CONGESTION STUDY" (PDF). Emp.lbl.gov. Archived from the original (PDF) on 2017-07-08. Retrieved 2018-12-22.
  16. ↑ Rossi, Jim (December 21, 2009). "The Trojan Horse of Electric Power Transmission Line Siting Authority". Law.lclark.edu. Retrieved 2018-12-22.
  17. ↑ "FERC: Industries - Order No. 1000 - Transmission Planning and Cost Allocation". Ferc.gov. Archived from the original on 30 October 2018. Retrieved 3 January 2019.
  18. ↑ Ko, Ted (2019-10-17). "Let's kill 'utility-' or 'grid-scale' storage". Utility Dive. Retrieved 2019-10-17.
  19. ↑ Konidena, Rao (2019). "FERC Order 841 levels the playing field for energy storage". MRS Energy & Sustainability. 6: 1–3. doi:10.1557/mre.2019.5. S2CID   182646294 – via CambridgeCore.
  20. ↑ Jeff St. John (July 10, 2020). "'Enormous Step' for Energy Storage as Court Upholds FERC Order 841, Opening Wholesale Markets". www.greentechmedia.com. Retrieved January 16, 2021.
  21. ↑ "FERC Order 841: US about to take 'most important' step towards clean energy future". www.energy-storage.news. July 13, 2020. Retrieved January 16, 2020.
  22. ↑ Sean Baur (September 1, 2020). "Going beyond Order 841 to more meaningful FERC storage policy" . Retrieved January 16, 2021.
  23. ↑ "FERC Opens Wholesale Markets to Distributed Resources: Landmark Action Breaks Down Barriers to Emerging Technologies, Boosts Competition". FERC. Retrieved 2022-04-07.
  24. ↑ "'Game-Changer' FERC Order Opens Up Wholesale Grid Markets to Distributed Energy Resources". www.greentechmedia.com. Retrieved 2022-04-07.
  25. ↑ "FERC Order 2222: Experts offer cheers and jeers for first round of filings". Canary Media. 14 March 2022. Retrieved 2022-04-07.
  26. ↑ FERC v. Electric Power Supply Assn., No. 14–840, 577 U. S. ____, slip op. at 2, 33–34 (2016).
  27. ↑ "Explainer on the Interconnection Final Rule". Federal Energy Regulatory Commission. July 28, 2023. Retrieved May 15, 2024.
  28. ↑ "Docket Number RM21-17-000: Final Rule". Federal Energy Regulatory Commission. May 14, 2024. Retrieved May 15, 2024.
  29. ↑ "Building for the Future Through Electric Regional Transmission Planning and Cost Allocation". Federal Energy Regulatory Commission. May 14, 2024. Retrieved May 15, 2024.
  30. ↑ "Chairman Phillips' and Commissioner Clements' Joint Concurrence on FERC Order No. 1920". Federal Energy Regulatory Commission. May 14, 2024. Retrieved May 15, 2024.
  31. ↑ "FERC Changes Order 1920 to Strengthen State Regulators in Long-Term Transmission Planning". T&D World. November 25, 2024. Retrieved November 27, 2024.
  32. ↑ "Order No. 1920-A, Building for the Future Through Electric Regional Transmission Planning and Cost Allocation". Federal Energy Regulatory Commission. November 26, 2024. Retrieved November 27, 2024.
  33. ↑ "Staff Presentation: Applications for Permits to Site Interstate Electric Transmission Facilities". Federal Energy Regulatory Commission. May 14, 2024. Retrieved May 15, 2024.
  34. 1 2 FERC faces heightened scrutiny as gas projects proliferate, Hannah Northey, E&E, November 3, 2014.
  35. 1 2 Delaware Riverkeepers Network v. Federal Energy Regulatory Commission, No. 16-CU-416 (D. D.C. March 22, 2017).
  36. ↑ See for example RTO Insider, Protesters Interrupt FERC Open Meeting, Michael Brooks, 1/26/2015.
  37. ↑ Meet the People Making Life a Little More Difficult for FERC this Week, RTO Insider-May 26, 2015.
  38. ↑ "NPC Luncheon with Cheryl LaFleur, chairman of the Federal Energy Regulatory Commission". National Press Club. 15 January 2015. Retrieved 3 January 2019.
  39. ↑ "NATIONAL PRESS CLUB LUNCHEON WITH FERC CHAIRMAN CHERYL LAFLEUR : SUBJECT: PLANS FOR REDUCING GREENHOUSE GAS EMISSIONS" (PDF). Press.org. Retrieved 3 January 2019.
  40. ↑ Zullo, Robert (December 22, 2017). "New FERC chief:Pipeline permit policies to be reviewed". Richmond Times-Dispatch . Richmond, Virginia. p. A5. FERC faces several lawsuits over its approval of pipeline projects, which critics say amounts to a rubber stamp that, in turn confers handsome rates of return and powers of eminent domain to seize private property without adequately vetting whether they serve true public purpose.
  41. ↑ NO GAS PIPELINE, Petitioner v. FEDERAL ENERGY REGULATORY COMMISSION, Respondent Statoil Natural Gas, LLC, et al., Intervenors (Nos. 12–1470, 12–1474, 12–1475). Decided: July 1, 2014
  42. ↑ FERC Protests Make No Sense, Kennedy Maize, Powermag.com, May 24, 2016.
  43. ↑ Deak, Mike (August 17, 2016). "Activists critical of federal hearing on PennEast pipeline". My Central Jersey . Archived from the original on 2021-07-31. Retrieved July 31, 2021.
  44. ↑ Delaware Riverkeeper Network and Maya Van Rossum v. FERC, No. 17-5084 (D.C. Cir. 2018)
  45. ↑ See, Delaware Riverkeeper Network v. FERC, 13-1015, U.S. Court of Appeals for the D.C. Circuit.
  46. ↑ Minisink Residents for Environmental Preservation and Safety et al v. FERC (No. 12-1481)
  47. ↑ Myersville Citizens for a Rural Cmty., Inc., v. FERC, 783 F.3d 1301, 1326-7 (D.C. Cir. 2015)
  48. ↑ Transcontinental Gas Pipe Line Company, LLC, 149 FERC ¶ 61,258 (2014).
  49. ↑ NYISO 30 OATT Attachment X
  50. ↑ "Board on Electric Generation Siting and the Environment". 3.dps.my.gov. Retrieved November 7, 2018.
  51. ↑ "ORDER GRANTING COMPLAINT IN PART AND DENYING IN PART" (PDF). Ferc.gov. February 3, 2017. pp. 1–2. Archived from the original (PDF) on June 30, 2018. Retrieved November 7, 2018.
  52. ↑ Rich Heidorn Jr. (January 24, 2017). "FERC OKs NYISO Demand Curve Reset". RTO Insider. Archived from the original on November 8, 2018. Retrieved November 8, 2018.
  53. ↑ "COMMENTS OF THE STATE ENTITIES ON NYISO STAFF RECOMMENDATIONS REGARDING ICAP DEMAND CURVE PARAMETERS" (PDF). October 3, 2016. pp. i, ii, 48–52. Archived from the original (PDF) on November 8, 2018. Retrieved November 7, 2018.
  54. ↑ Rory D. Sweeney (June 3, 2018). "Analyst: FERC Asserts Role in Handling Nuke Subsidies". RTO Insider. Archived from the original on November 8, 2018. Retrieved November 7, 2018.

Further reading

This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.