FERC Order 845 reforms interconnection process

U.S. utility regulators have issued an order adopting a final rule reforming the procedures through which electric generators obtain interconnections to the utility grid. The Federal Energy Regulatory Commission's Order No. 845 adopts a final rule which implements ten specific reforms designed to provide interconnection customers better information and more options, in the hopes that transmission providers will better be able to focus on interconnection requests that are likely to reach commercial operation.

Generally speaking, generators need to interconnect to the utility grid (and to consumers) for their power to be valuable. Under the Federal Power Act, many generator interconnections are subject to regulation by the Commission. In December 2016, the Commission issued a Notice of Proposed Rulemaking proposing 14 sets of reforms to its interconnection regulations. In that notice, the Commission cited changes to the electric power industry since the Commission issued its Order No. 2003 governing interconnections, and concerns including long queues and delays for interconnection studies, and a lack of certainty around timing and costs.

As a result, in 2016 the Commission preliminarily found that the interconnection process may hinder the timely development of new generation, and thereby stifle wholesale competition, resulting in rates, terms, and conditions that are not just and reasonable or are unduly discriminatory or preferential. The Commission also preliminarily found the interconnection process could result in uncertainty and inaccurate information, and a potential for discrimination as new technologies enter the market.

Now, following a technical conference and 63 public comments, the Commission issued its order adopting the final rule on April 19, 2018. The final order adopted many of the Commission's 2016 proposals, while deviating from that earlier proposal in some regards.

Among other items, the final rule includes two sets of reforms designed to improve certainty for interconnection customers, four aimed at promoting more informed interconnection decisions, and four designed to enhance the interconnection process.

The Commission also decide to revise its pro forma Large Generator Interconnection Procedures and  Large Generator Interconnection Agreement, to mitigate concerns about systemic inefficiencies, discriminatory utility practices, and time spent on interconnection requests that are unlikely to reach commercial operation.

The final rule, codified as 18 C.F.R. Part 37, will become effective 75 days after its publication in the Federal Register.

Generator interconnection technical conference scheduled

The Federal Energy Regulatory Commission has scheduled a technical conference to generator interconnection issues, including interconnection of energy storage.

The case has its origins in a 2015 petition to the Commission by the American Wind Energy Association, seeking a rulemaking to revise certain provisions of the Commission's pro forma Large Generator Interconnection Procedures (“GIP”) and pro forma Large Generator Interconnection Agreement (“GIA”).

AWEA is a national trade association representing a broad range of entities with a common interest in encouraging the expansion and facilitation of wind energy resources in the United States. Its members include wind energy facility developers, owners and operators, construction contractors, turbine manufacturers, component suppliers, financiers, researchers, utilities, marketers, customers, and their advocates.

In that petition, the trade group argued:

the time is ripe for the Commission to make certain regulatory and policy changes to interconnection procedures in order to remedy unduly discriminatory and unreasonable barriers to generator market access that inhibit the development of electric generation to meet the growing needs of electricity customers, and to facilitate the current dramatic transformation of the electric generation system (driven, in part, by Federal and State policies) in a timely, reliable and cost-effective manner.

AWEA's petition called for a variety of reforms to the interconnection procedures and agreement, particularly aimed at improving "(a) certainty in the study/restudy process; (b) transparency in the interconnection process; (c) certainty of network upgrade costs; and (d) accountability in the interconnection process."  After many comments were submitted on the rulemaking petition, AWEA asked the Commission to hold a technical conference as a forum for "open discussion" among interested parties.

The Commission has now issued notice of a technical conference to be held on May 13.  According to the notice:

The purpose of this conference is to discuss select issues related to a petition for rulemaking submitted by the American Wind Energy Association (Docket No. RM15-21-000). In addition, the conference will explore other generator interconnection issues, including interconnection of energy storage.

The notice also states that discussions at the conference may involve issues raised in other proceedings pending before the Commission, including without limitation 8 sets of specifically listed cases:

• E.ON Climate & Renewables North America LLC, Pioneer Trail Wind Farm, LLC, Settlers Trail Wind Farm, LLC v. Northern Indiana Public Service Company, Docket No. EL14-66-002;

• Entergy Arkansas, Inc., Docket No. ER14-671-000;

• Internal MISO Generators v. Midcontinent Independent System Operator, Inc., Docket No. EL15-99-000;

• Midcontinent Independent System Operator, Inc., Docket No. ER16-675-000;

• California Independent System Operator Corporation, Docket No. ER16-693-000;

• ISO New England, Inc., Docket No. ER16-946-000;

• Midcontinent Independent System Operator, Inc., Docket No. ER16-1120-000; and

• Midcontinent Independent System Operator, Inc., Docket No. ER16-1211-000. 

The conference will be held on May 13 at Commission headquarters in Washington, DC.