Bud Earley

Bud Earley, a non-lawyer senior advisor, provides analysis and advice on a wide range of federal and state energy regulatory issues, including transaction and rate issues, regional transmission organization (RTO) tariffs and rules, interconnection, retail choice and demand response for electricity customers, a natural gas pipelines and hydroelectric facility licenses, and LNG export authorizations.

Working with Covington teams, Mr. Earley has provided expert advice and analysis to investment firms, utilities, independent power producers, project developers, customers, marketers and U.S. and international energy companies,

Prior to joining Covington, Mr. Earley served for over 30 years in various staff positions at the Federal Energy Regulatory Commission (FERC). While at the FERC, Mr. Earley was instrumental in developing and applying policies regarding the transition of the electric utility industry to competition, including policies regarding independent power producers, transmission access, standard generator interconnection procedures, organized electricity markets, mergers and market-based rates.

Firm/Organization: Covington & Burling LLP

Blogs: Inside Energy & Environment

Latest Articles

Inside Energy & Environment

FERC Approves Electric Storage Resource Practices in Two Regions

By Bud Earley

October 18, 2019

As described previously in this blog, FERC in 2018 adopted a rule aimed at clearing away obstacles to participation by electric storage resources in wholesale markets administered by Regional Transmission Organizations (RTOs) and Independent System Operators (ISOs).[1] FERC has issued orders addressing the compliance filings of two RTOs: the PJM Interconnection (PJM) and Southwest Power Pool (SPP). The FERC compliance orders will be of keen interest to storage resources and other market participants…

Inside Energy & Environment

FERC Proposes Changes To PURPA Rules

By Bud Earley

September 27, 2019

The FERC recently issued a Notice of Proposed Rulemaking (NOPR) to reform its regulations implementing the Public Utility Regulatory Policies Act of 1978 (PURPA), which encourages the development of certain small generation and cogeneration facilities. PURPA and FERC’s rules implementing it over the years establish a number of benefits to those facilities and set obligations for electric utilities to purchase electricity from them. FERC now concludes that, due to changes in the electric power industry…

Inside Energy & Environment

FERC Lowers Regulatory Burdens for Electricity Sellers in RTO/ISO Markets

By Bud Earley

July 19, 2019

FERC has streamlined its rules so that generators in the organized markets operated by Regional Transmission Organizations (RTOs) and Independent System Operators (ISOs) no longer need to demonstrate a lack of horizontal market power in order to charge flexible market-based rates. Instead, FERC will rely on existing market monitoring and mitigation measures in place in those markets to guard against exercises of market power. This rule will be of interest to power generators; it will…

Inside Energy & Environment

FERC Denies Rehearing on Electricity Storage Rule

By Bud Earley

May 22, 2019

The Federal Energy Regulatory Commission (FERC) has issued an order denying all requests for rehearing of its rule aimed at clearing away obstacles to participation by electric storage resources in wholesale markets administered by Regional Transmission Organizations (RTOs) and Independent System Operators (ISOs).[1] Electric storage resources often complement renewable resources when the sun is not shining and the wind is not blowing. Easing the entry of storage is likely to have a growing…

Inside Energy & Environment

FERC Considering Reforms to ROE Determinations

By Bud Earley

March 28, 2019

Setting the return on equity (ROE) that utility stockholders may earn from providing certain services, primarily electric transmission and pipeline services, is a fundamental aspect of FERC’s cost-of-service regulatory regime.[1] FERC has used the same basic method to determine ROE since the 1980s but recently made some reforms that applied to a few electric transmission cases. Now FERC has issued a Notice of Inquiry (NOI) seeking public comments regarding those reforms and whether…

Inside Energy & Environment

FERC Approves Notice Requirement For Public Utility Mergers and Acquisitions Under New Monetary Threshold

By Bud Earley

February 25, 2019

FERC has approved a final rule that sets a $10 million threshold for requiring FERC prior approval of public utility mergers and consolidations and requires public utilities to simply notify FERC of mergers and consolidations with a value over $1 million but less than $10 million. The changes place mergers and consolidations under the same value threshold as other types of transactions and eliminate the need for low-value mergers and consolidations to secure FERC approval.…

Inside Energy & Environment

FERC Proposes to Reduce Regulatory Burdens for Electricity Sellers in RTO/ISO Markets

By Bud Earley

January 7, 2019

FERC recently proposed to streamline its market power rules so that generators in markets operated by Regional Transmission Organizations and Independent System Operators would no longer need to demonstrate a lack of horizontal market power in order to charge flexible market-based rates. Instead, FERC will rely on the existing market monitoring and mitigation measures approved for those markets to guard against exercises of market power. This proposal will significantly simplify the regular market power filings…

Inside Energy & Environment

DOE Drops “End Use” Requirement From LNG Export Reporting

By Bud Earley

December 26, 2018

DOE’s authorizations to export natural gas, including LNG, from the U.S. impose reporting requirements regarding the destination of the exported gas and certain contracts regarding its supply and sales. DOE recently modified one of those requirements in a significant way and proposed sharper guidelines for complying another to minimize regulatory burdens and reduce administrative uncertainty. These changes in DOE policy will be of interest to LNG export authorization holders and their counterparties in gas sales…

Inside Energy & Environment

New York Proposes Innovative Carbon Pricing for Electricity

By Mark Perlis, Bill Massey & Bud Earley

December 20, 2018

Carbon monoxide on cloud, pollution icon

Carbon pricing is seen by many as an effective means of reducing carbon dioxide (CO2) emissions from electricity generation. California and several Eastern states have enacted “cap and trade” emission allowance programs, which have forced generators in those states to pay a price for their CO2 emissions. With the Obama Administration’s Clean Power Plan not being implemented, there is currently no federal policy in place that would result in carbon pricing for electricity. In a…

Inside Energy & Environment

FERC Proposes Notice Requirement For Public Utility Mergers and Acquisitions Under New Monetary Threshold

By Bud Earley

November 16, 2018

A recent amendment to the Federal Power Act (FPA) that will become effective March 27, 2019 sets a $10 million threshold for requiring Federal Energy Regulatory Commission (FERC) prior approval of public utility mergers and consolidations. That amendment also calls for FERC to adopt a rule requiring public utilities to simply notify FERC of mergers and consolidations with a value over $1 million but less than $10 million. At its recent public meeting, FERC approved…

Bud Earley

FERC Approves Electric Storage Resource Practices in Two Regions

FERC Proposes Changes To PURPA Rules

FERC Lowers Regulatory Burdens for Electricity Sellers in RTO/ISO Markets

FERC Denies Rehearing on Electricity Storage Rule

FERC Considering Reforms to ROE Determinations

FERC Approves Notice Requirement For Public Utility Mergers and Acquisitions Under New Monetary Threshold

FERC Proposes to Reduce Regulatory Burdens for Electricity Sellers in RTO/ISO Markets

DOE Drops “End Use” Requirement From LNG Export Reporting

New York Proposes Innovative Carbon Pricing for Electricity

FERC Proposes Notice Requirement For Public Utility Mergers and Acquisitions Under New Monetary Threshold

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