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
Or so Secretary Rick Perry and the DOE would have us believe. Approximately three weeks ago, the DOE made its pitch to FERC and the energy industry that a lack of “resiliency” threatens the U.S. power grid. The responses are in. And the shock and bewilderment that immediately followed the release of the Secretary’s surprising…
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. June 2, 2017 was the deadline by which the legislature was required to pass bills out of the house of origin. Failing to meet that deadline does not automatically prevent a bill from proceeding through the legislative process; however, such failure will prevent the bill from being considered by the full legislature or the Governor during the first half of the Legislative Session. Below is a summary of bills we have been following that have most recently changed. We will continue to monitor and update these energy-related bills as the legislative session proceeds.
AB 79 (Levine, D): Electrical generation: hourly greenhouse gas emissions: electricity from unspecified sources.
STATUS: Ordered to Senate June 1, 2017.
- Initially introduced as a bill to decrease the amount energy consumed from coal-fired generation resources, AB 79 was revamped to require, by January 1, 2019, the State Air Resources Board (CARB), in consultation with the Independent System Operator (ISO), to regularly update its methodology for the calculation of emissions of greenhouse gases associated with electricity from unspecified sources. The bill would require the CPUC and the CEC to incorporate the methodology into programs addressing the disclosure of the emissions of greenhouse gases and the procurement of electricity by entities under the respective jurisdiction of each.
Earlier this year, a group of Stoel Rives attorneys traveled to Mexico to assess existing opportunities and pending developments in the Mexican power markets. Some of the reforms and key trends identified during that trip are now taking shape. See also my blog post “Let the Market Decide: The Third Wave of Energy Investment in Latin America and Caribbean.”
Our work in Mexico included meetings with existing clients, senior partners of a major Mexican law firm, a briefing with a senior Mexican policymaker regarding implementation of the reforms and attendance at the Mexican International Renewable Energy Conference. Here are some key “take-aways” from these meetings:
- A Mexican renewable energy market has been successfully launched, with more wind than solar developed to date.
- A package of “secondary” laws implementing Mexico’s energy reform legislation are pending in the Mexican Congress.
- The secondary laws will include some form of renewable portfolio standard (e.g., 30% by 2024) that relies on (among other elements) renewable energy certificates.
- The secondary laws are also expected to launch a wholesale electricity market, a demand response market and other provisions designed to encourage distributed generation.
- Solar module manufacturers and other stakeholders are concerned about the government’s decision to apply a 15% import tax on electrical “generators” to non-NAFTA solar modules.
FERC issues a proposed rulemaking that impacts the owners of gen-tie lines, and the rulemaking is particularly important to renewable energy developers who are interested in maintaining priority to gen-tie capacity for multi-phase projects.
Continue Reading FERC Initiates Proposed Rulemaking Affecting Interconnection Facilities
The East Kern Wind Resource Area (EKWRA)–it’s a mouthful–and it’s also a hotbed for renewable energy development and the location of a fight over millions of dollars among Southern California Edison (SCE), the California ISO, and independent power developers (IPPs). Late last week, the Federal Energy Regulatory Commission (FERC) scored that fight in favor of…
Ameren is dusting off a discriminatory method for interconnection customers to fund network upgrades in the Midcontinent ISO region, using two past victories in support of its campaign. But there are key differences between this dispute and those before it, and FERC should deny Ameren’s latest attempt to breathe life into the Option 1 funding that met its fate years ago.
Continue Reading Ameren Should LOSE the Latest Battle Over Option 1 Network Upgrade Funding in the Midcontinent ISO Region
The Minnesota State Legislature is currently debating a bill that would ease the regulatory burden on independent power producers looking to export wind and solar energy generated in Minnesota.
Minnesota law currently prohibits the construction of a large energy facility without the issuance of a certificate of need by the Minnesota Public Utilities Commission. This…
If you are drafting a liquidated damages clause that applies Texas law, a decision today by the Supreme Court of Texas might encourage you to hire an oracle. Because if you negotiate a liquidated damages provision in a “second-look” state without using the power of divination, you may be surprised when a once-reasonable estimate of damages becomes unenforceable because of subsequent changes in the market.
Continue Reading Negotiating a Liquidated Damages Clause in Texas? Get Out Your Crystal Ball.
Qualifying facility interconnection conversions can be an effective way to bypass the interconnection queue, even during a repower. But there are groundrules to a conversion, and today FERC applied those rules and determined that qualifying facility owners may not be entitled to as much converted capacity as they might think.
Continue Reading Qualifying Facility Conversions – It’s What All the Kids Are Talking About