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Several weeks ago, we reported on a new Federal Energy Regulatory Commission (FERC) Notice of Inquiry (NOI) seeking comments on whether its existing return on equity (ROE) policy should be revamped. A recent federal court of appeals ruling enhances the importance of this new FERC NOI for those concerned that the current policy encourages pipeline overbuilding. Under its existing policy, FERC grants virtually all new gas pipeline expansions an ROE of 14 percent regardless of…
Although primarily focused on the electric transmission industry, a recent Federal Energy Regulatory Commission (FERC) Notice of Inquiry (NOI) announced reconsideration of how the agency determines returns on equity (ROE) and seeks comments on whether it should apply any revamped ROE policies to interstate natural gas and oil pipelines. This NOI creates an additional avenue for gas industry participants seeking changes in how the FERC evaluates and approves the construction of new gas pipeline facilities.…
On March 21, 2019, the Federal Energy Regulatory Commission issued Notices of Inquiry regarding (1) its method for determining the return on equity for rates charged by public utilities (and whether such ROEs should also be applied to interstate natural gas and oil pipelines) (Inquiry Regarding the Commission’s Policy for Determining Return on Equity,), and (2) the scope and implementation of its electric transmission incentives regulations and policies (Inquiry Regarding the Commission’s
On February 26, 2019, Administrative Law Judge Stevens of the California Public Utilities Commission (CPUC) issued a proposed decision (Proposed Decision) ruling on the applications for programs and investments in energy storage systems submitted by the state’s three investor-owned utilities (IOUs) pursuant to Assembly Bill (AB) 2868. The Proposed Decision rejected a number of energy storage programs proposed by San Diego Gas & Electric Company, Pacific Gas and Electric Company, and Southern California Edison Company,…
The Federal Energy Regulatory Commission has ruled that if any party purchasing electricity pursuant to a FERC-jurisdictional wholesale power agreement proposes to reject that contract as part of a reorganization under the Bankruptcy Code, such party, “must obtain approval from both this Commission and the bankruptcy court to modify the filed rate and reject the contract, respectively.” NextEra Energy, Inc. v. Pacific Gas and Electric Company, 166 FERC ¶ 61,049 (2019); see also, Exelon Corp.…
As the costs of residential solar photovoltaic (PV) systems fall and installations rise, developers and investors face new regulatory hurdles. Registration as a qualifying facility (QF) under the Public Utility Regulatory Policy Act (PURPA) recently has become a common subject of concern among both developers and tax equity investors. Developers are working to determine whether they are triggering compliance obligations, and investors are asking whether they have to register by virtue of their ownership interests.…