Today was a big day for the solar power industry at the Federal Energy Regulatory Commission (FERC).

In its monthly open meeting, FERC announced two decisions that significantly impact the industry — one involving PURPA and the other related to PJM’s Minimum Offer Price Rule (MOPR).

First, FERC reversed its Broadview Solar decision issued in September 2020, which prior decision overturned decades of precedent related to the method for determining the net output of qualifying facilities under PURPA.  That September decision provided that qualifying facilities could not take into account devices that can limit their output, such as inverters, in determining their net output.  And that meant, in Broadview Solar’s case, that a solar power qualifying facility with greater than 80 MW of solar panel capacity, but only 80 MW of inverter capability, would not be eligible for qualifying facility status.  But today FERC reversed that decision, finding that a qualifying facility’s net output should reflect the facility’s design and its actual capabilities (not theoretical ones).

Next, FERC responded to a petition for declaratory order in which an applicant sought confirmation that local property tax relief that is available to solar power facilities as Pollution Control Equipment (Va. Code Ann. Sec. 58.1-3660) is not a State Subsidy that would subject the applicant to the expanded MOPR in the forthcoming PJM Base Residual Auction.  Just a few months ago, PJM had determined that the very same tax relief would cause recipients to be subject to the MOPR.  But FERC disagreed and as a result solar power project owners may utilize this tax relief in Virginia without consequence in PJM’s capacity auctions.

The orders in these proceedings have not yet been released, and we will provide further updates as needed once they are available for review.

Photo of Jason Johns Jason Johns

Jason Johns advises independent power producers, utilities, investors, and large users of gas and power resources with matters arising in power markets and state and federal energy regulatory arenas. Jason appears regularly in proceedings before the Federal Energy Regulatory Commission and in negotiations…

Jason Johns advises independent power producers, utilities, investors, and large users of gas and power resources with matters arising in power markets and state and federal energy regulatory arenas. Jason appears regularly in proceedings before the Federal Energy Regulatory Commission and in negotiations at the ISO/RTO level, where he represents independent power developers and utilities. His experience includes negotiating major facility contracts, such as interconnection, transmission, and power purchase agreements; prosecuting disputes at FERC; and counseling and defending clients on issues related to regulatory compliance.

Jason also works closely with large commercial and industrial users of electricity and gas, such as aerospace companies, pulp and paper mills, steel mills, and tech company data centers. In that role, Jason helps clients negotiate power and gas supply contracts, interstate pipeline capacity asset management agreements, and pipeline bypass agreements. Jason has also assisted these clients with demand management agreements, the installation of on-site resources (such as battery storage, fuel cells, and solar PV), and with retail and wholesale power purchase agreements for renewable energy and other resources. Jason also serves as a board member of The Climate Trust, a national leader in carbon offset projects and innovative climate change solutions.

Jason and his wife are parents to two growing boys, and they live just outside of Portland, Oregon.

Click here for Jason John’s full bio.

Photo of Jessica Bayles Jessica Bayles

Jessica Bayles is a partner in Stoel Rives’ Energy Development group, where she focuses her practice on energy regulatory support for renewable project development and transactions, compliance counseling, and regulatory controversies. Jessica counsels renewable energy developers and asset managers on compliance with the…

Jessica Bayles is a partner in Stoel Rives’ Energy Development group, where she focuses her practice on energy regulatory support for renewable project development and transactions, compliance counseling, and regulatory controversies. Jessica counsels renewable energy developers and asset managers on compliance with the requirements of the Federal Energy Regulatory Commission (FERC). She has significant experience in complex litigation and settlement proceedings before FERC. She also advises large electric customers in state public utility commission proceedings.

Click here for Jessica Bayles’ full bio.