The Federal Energy Regulatory Commission’s (“FERC”) long-awaited Order 845 (Reform of Generator Interconnection Procedures and Agreements) was issued on April 19 after over two years of consideration of the issues. Order 845 is the first grid-wide major reform of FERC’s Generator Interconnection Procedures and Agreements since Order 2003 was issued 15 years ago.  Order 845 adopts reforms that are designed to address three goals: (1) improving certainty for interconnection customers, (2) promoting more informed interconnection decisions, and (3) enhancing the interconnection process.

Order 845 revises FERC’s pro forma Large Generator Interconnection Procedures (“LGIP”) and Large Generator Interconnection Agreement (“LGIA”) to recognize the changing landscape of technology and is intended to provide interconnection customers with new opportunities to interconnect their projects faster and more cost-effectively.  For example, transmission providers must now allow interconnection customers (at the interconnection customer’s option) to build the needed transmission owner interconnection facilities and stand-alone network upgrades in all cases. Previously, interconnection customers only had this option if the transmission owner could not meet the dates proposed by the interconnection customer.  Thus, an interconnection customer has newly granted flexibility in the construction of the transmission owner interconnection facilities and stand-alone network upgrades. If the transmission owner returns a high cost estimate, then the interconnection customer can manage the construction of the transmission owner interconnection facilities. On the other hand, if the transmission owner cost estimate is reasonable, the interconnection customer can choose to leave the construction responsibilities for the transmission owner interconnection facilities and stand-alone network upgrade with the transmission owner. Interconnection customers can now make these decisions based on both timing and cost considerations.Continue Reading Helping the Hook-Up: FERC’s Generator Interconnection Procedures Reform Seeks to Improve Information Flow, Recognizes Changing Technology and Opens Further Opportunities for Storage

Stoel Rives’ Energy Team has been monitoring and providing summaries of key energy-related bills introduced by California legislators since the beginning of the 2017-2018 legislative session. Legislators have been busy moving bills through the legislative process since reconvening from the spring recess. Below is a summary and status of bills we have been following.

An enrolled bill is one that has been through the proofreading process and is sent to the Governor to take action. A two-year bill is a bill taken out of consideration during the first year of a regular legislative session, with the intent of taking it up again during the second half of the session.

  • Since our last update, the Governor has vetoed one bill and signed the others that were sent for approval earlier this session.
  • Several bills we previously reported on have become two-year bills, but without much movement in this second half of the session.
  • Several new bills have been introduced that are currently going through the process of amendments and hearings. 

Bills Passed Since Last Update

SB 549 (Bradford, D): Public utilities: reports: moneys for maintenance, safety and reliability.
STATUS: Approved by Governor September 25, 2017.

  • Existing law places various responsibilities upon the CPUC to ensure that public utility services are provided in a manner that protects the public safety and the safety of utility employees.
    • SB 549 requires an electrical or gas corporation to annually notify the CPUC each time that capital or expense revenue authorized by the CPUC for maintenance, safety or reliability is redirected for other purposes, and requires the CPUC to make the notification available to the Office of Safety Advocate, Office of Ratepayer Advocates, and to the service list of any relevant proceeding.

Continue Reading Updates to Energy-Related Bills in the 2017-2018 California Legislative Session

In February, FERC issued Order 841, Electric Storage Participation in Markets Operated by Regional Transmission Organizations and Independent System Operators (the “Order”), requiring RTOs and ISOs to establish new market participation rules for energy storage that recognize the physical and operational characteristics of these resources. While the Order set forth some minimal requirements that…

On February 8, 2018, the California Public Utilities Commission (“CPUC”) adopted a new procurement process in a decision which suggested that 2,000 MW of new battery energy storage resources may be needed in California by 2030. This means an additional 2,000 MW of storage on top of the existing 1,325 MW that is already required.…

In the recently issued but unpublished decision Reed v. SunRun, Inc. (Los Angeles County Super. Ct. No. BC498002, Feb. 2, 2018), the Second District Court of Appeal ruled that a solar power purchase agreement (“PPA”) provider that only sells solar energy to homeowners is not required to be a licensed California contractor under certain…

In a move that was widely anticipated across the energy industry, the Federal Energy Regulatory Commission (FERC) today issued an order that terminated a notice of proposed rulemaking that had been initiated in October 2017 in response to a demand by Energy Secretary Rick Perry that FERC enact rules to compensate certain resources for what…

The investment tax credit (“ITC”) plays a major role in driving investment in the U.S. solar energy market. Earlier this month, two members of Congress introduced a bill in the U.S. House of Representatives to provide a similar ITC for energy storage systems.

The bill, called the Energy Storage Tax Incentive and Deployment…

On December 1, 2017, two of the three major California investor-owned utilities (“IOUs”), Pacific Gas & Electricity (“PG&E”) and Southern California Edison (“SCE”), submitted applications for approval of the results of their 2016-2017 energy storage request for offers.

Background on the Energy Storage Mandate in California

In September 2010,…

For the first time in almost 30 years, the Michigan Public Service Commission (MPSC) is overhauling its implementation of PURPA. The last time the MPSC evaluated Consumers Energy Company’s (Consumers) avoided cost methodology, the Midcontinent Independent System Operator (MISO) had not been created and the generation market was vastly different than it is today. The…

Introduction

On October 4, 2017, the Governors of a number of western states signed a memorandum of understanding (“MOU”) to lay the foundation for work on a regional electric vehicle (“EV”) infrastructure development plan called the Regional Electric Vehicle Plan for the West (“REV West Plan”). The MOU was initially entered by Colorado, Utah, Nevada, Montana, Wyoming, Idaho and New Mexico, and later Arizona. [1]  The MOU calls for the participating states to work cooperatively to establish policies that will support the development of EV charging stations along 11 major transportation corridors that link their states together, spanning a total of 5,000 miles.[2] The MOU mainly focuses on interstate highway infrastructure including East-West Interstate 10, 40, 70 76, 80, 84, 86, 90, 94 and North-South Interstates 15 and 25.

The signatories to the MOU anticipate a future with much higher levels of EV usage. To support this greater EV usage, the MOU calls for efforts by the states to:

  1. Coordinate station locations, thereby maximizing use and minimizing inconsistency across charging station infrastructure;
  2. Develop practices and procedures that will encourage more people to adopt EVs, including addressing “range anxiety”;
  3. Develop operating standards for charging station uniformity;
  4. Explore ways to incorporate EV charging stations in the planning and development processes;
  5. Encourage automakers to stock a variety of EVs in participating states; and
  6. Collaborate on funding and finding opportunities for the network.[3]

Continue Reading The Western States’ Plan for EV Charging Infrastructure – Lessons Learned and Things to Watch