FERC Suspension of Market-Based Rate Authority May Affect Existing Power Supply Arrangement
From our colleague Jim Mitchell in DC: The authority of J. P. Morgan Ventures Energy Corporation (“JP Morgan”) to sell electric energy, capacity, and ancillary services at market-based rates for six months, beginning in April 2013, was recently suspended by the Federal Energy Regulatory Commission (the “FERC”) for violation of certain FERC rules. Although the … Continue reading
California Public Utilities Commission to Consider New Proposals to Improve Renewables Portfolio Standard Procurement Process
On Oct. 5, 2012, Commissioner Mark Ferron of the California Public Utilities Commission (“Commission”) issued a 39-page ruling including a number of proposals to improve California’s Renewables Portfolio Standard (“RPS”) procurement process. Specifically, he proposed an: [E]ffort to streamline the RPS contract review process, increase the transparency of the Commission’s review of RPS procurement, establish … Continue reading
Renewables Portfolio Standard Rulemaking to Continue
Having dispensed with many of the preliminary issues regarding the new and improved 33% by 2020 Renewables Portfolio Standard, Commissioner Ferron issued a new scoping ruling on Wednesday providing a preliminary list of issues for the remainder of the proceeding. The scoping ruling extends the proceeding for another two years, however no specific procedural guideline … Continue reading
California to Explore Residential Rate Design
Residential rates and rate design have traditionally been a bit of a “sacred cow” in California that regulators have simply chosen not to mess with. But no more. On Monday, I attended the first workshop in the new residential rate design rulemaking at the Commission (R.12-06-013) that is aimed at determining the appropriate policy directives in … Continue reading
Pre-AB 32 Contracts: Are generators entitled to some relief for their greenhouse gas costs?
Generators that may have executed bilateral contracts with a California utility prior to the passage of Assembly Bill 32 (AB 32) in California such that their contract does not have specific terms and conditions assigning greenhouse gas cost responsibility should be aware that the matter of whether the generator is entitled to some sort of … Continue reading
Retail Rate Design is on the California Agenda
On June 21, the California Public Utilities Commission announced that it would be delving into the quixotic world of retail rate design. This incredibly important but amazingly esoteric area of utility regulation will affect just about everyone because it concerns how to split up the pie and who pays how much. Rate design is zero-sum– … Continue reading
Senate Bill 1018 Throws Monkeywrench Into Greenhouse Gas Allowance Revenues
The California Public Utilities Commission has been holding a rulemaking since March 2011 to determine what to do with the revenues that utilities will receive as a result of the direct allocation of greenhouse gas allowances to electrical distribution utilities in the state as a result of the new cap and trade program. As you … Continue reading
FERC Proposes to Revise Definition of “Bulk Electric System” for Determining Who Must Comply with Federal Reliability Standards
From my D.C. colleague Jim Mitchell: The Federal Energy Regulatory Commission (FERC) has issued a Notice of Proposed Rulemaking (NOPR) to revise the definition of “Bulk Electric System” (BES). This definition is important because it determines which transmission system elements are subject to mandatory electric reliability standards designed to ensure the uninterrupted operation of the … Continue reading
Net Metering Cap Clarified by California Public Utilities Commission
In a huge win for the solar industry, the California Public Utilities Commission voted unanimously to issue a decision that clarifies the calculation of the California’s five-percent Net Metering cap. Net Metering (“NEM”) allows customers to earn credit for excess solar electricity they produce that is distributed to other customers on the grid. Electric utilities … Continue reading
Fire Safety Proceeding Continues Into Phase 3 at the California Public Utilities Commission
Commissioner Simon and Administrative Law Judge Kenney presided over a prehearing conference in the Commission’s fire safety proceeding (R.08-11-005) today. The usual players were in attendance– the electric utilities, the communication utilities, consumer groups, environmental groups, and a few new players from the fire safety community (CalFIRE and LA Fire). Today’s topic was to determine … Continue reading
