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April 27, 2022 by James Goodwin

New Report: Democratizing Our Regulatory System Is More Important Than Ever. Can FERC Lead the Way?

Few policy questions have a more profound impact on our day-to-lives than how we produce, transport, and use energy. Whether it’s a fight against the siting of a polluting natural gas facility in a historically Black community, the catastrophic failure of an electric grid following a winter storm, foreign wars causing price shocks that further hollow out the fixed incomes of America’s older adults, or an abiding concern over leaving our grandchildren a habitable climate — all these issues and more make energy policy a central concern for the public.

Despite this broad-based and deep concern, the public remains largely excluded from participating in the development of energy policy — much less shaping it. Instead, corporate insiders still retain outsized influence over the energy policymaking process, leaving policymakers with a skewed perspective on issues they address through regulation, which ultimately undermines the quality and legitimacy of those regulations. Worse still, the voices that are systematically excluded often speak for structurally marginalized communities, which reinforces broader societal and racial injustice.

Fortunately, the Federal Energy Regulatory Commission (FERC) — which oversees much of the country’s energy infrastructure and helps set rules, rates, and standards for energy markets — is undertaking new efforts to …

March 15, 2022 by Daniel Farber
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This post was originally published on Legal Planet. Reprinted with permission.

On March 11, there were two seismic shocks in the world of gas pipeline regulation. The Federal Energy Regulatory Commission (FERC) has spent years resisting pressure to change the way it licenses new gas pipelines. The whole point of a natural gas pipeline is to deliver the gas to users who will burn it, thereby releasing carbon dioxide into the atmosphere. FERC has steadfastly refused to take those emissions into account. The D.C. Circuit held that position illegal in an opinion released last Friday. That same day, by coincidence, FERC published guidelines in the Federal Register explaining how it proposed to consider those emissions.

The D.C. Circuit opinion followed up on previous rulings but left no room for doubt about the court's position. The case involved a minor pipeline upgrade by the Tennessee Natural …

Nov. 11, 2021 by Richard Pierce, Jr.
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This commentary was originally published by The Regulatory Review. Reprinted with permission.

While most people were following the developments at the G20 meeting and the Climate Change Summit last week, or immersed in watching the outcomes of key elections in several states such as Virginia and New Jersey, I was waiting to learn the results of a referendum in Maine.

Last Tuesday, Maine voters approved a measure that prohibits the construction of a transmission line that would have delivered hydropower generated in Quebec to New England. New Hampshire refused to permit construction of the same transmission line last year.

The largely ignored vote in Maine may have a greater effect on the future of the United States than any of the highly publicized events of the past week. When states and localities block electricity transmission projects that are in the national interest, they threaten the country’s …

Feb. 22, 2021 by Alexandra Klass
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This post was originally published on Lawfare. Reprinted with permission.

It is now a week out from the start of the massive Texas grid failure that has resulted in numerous deaths; millions of people plunged into darkness; scores of communities without clean water or heat in record cold temperatures; and billions of dollars in catastrophic damage to homes, businesses and the physical infrastructure that supports them. Critical questions surround the causes of this massive disaster and how to plan for the future so that a tragedy of this scale does not happen again.

At this point, there are many facts that Americans already know. Contrary to the spurious claims by Gov. Greg Abbott as well as numerous right-wing politicians and pundits, freezing wind turbines and the state’s history of supporting renewable energy development did not cause the grid to fail. Indeed, wind turbines outperformed grid operator …

Jan. 22, 2021 by Joseph Tomain
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President Joe Biden named Commissioner Richard Glick as Chair of the Federal Energy Regulatory Commission (FERC) January 21. Glick succeeds Chairman James Danly. The Commission is expected to retain its Republican majority until Commissioner Neil Chatterjee's term is up on June 30.

Glick previously served as a FERC Commissioner nominated by President Trump in August 2017 and confirmed by the Senate later that year.

Before joining FERC, Glick was general counsel for the Democrats on the Senate Energy and Natural Resources Committee, serving as a senior policy advisor on numerous issues, including electricity and renewable energy. Prior to that, he was vice president of government affairs for Iberdrola, a Spanish multinational electric utility. At Iberdrola, Glick focused on the company’s renewable energy, electric and gas utility, and natural gas storage businesses in the United States. He ran the company’s Washington, DC, office and was responsible …

July 12, 2018 by Daniel Farber
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At the end of June, in a vote divided along partisan lines, the Federal Energy Regulatory Commission (FERC) handed down a sweeping order that will impact electricity markets in a wide swath of the country – likely at the expense of renewable energy and nuclear power. Unfortunately, like Trump's power plant bailout, the result may be to delay the closing of coal-fired power plants. That's a serious problem. A new study by researchers at Resources for the Future shows that a two-year delay in plant closings would cause 353-815 deaths and release 22 million extra tons of carbon. A two-year delay would cause one death for every four or five coal mining jobs it saved for those two years.

The FERC order applies to PJM, which operates a vast part of the national grid encompassing much of the mid-Atlantic, upper South, and Midwest. My first thought was that …

Jan. 16, 2015 by Joel Eisen
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As expected, yesterday the Solicitor General filed a petition for certiorari to the Supreme Court in FERC v. Electric Power Supply Association, asking the Supreme Court to review a May 23, 2014 decision from a divided panel of the D.C. Circuit that invalidated FERC’s Order 745.

Order 745 directs Regional Transmission Organizations (RTOs) and Independent System Operators (ISOs) to establish rules that compensate demand response resources at the wholesale market price—the same rate that electric power suppliers receive for selling electricity.  A group of organizations affiliated with generators of electricity sued FERC, alleging that Order 745 had overstepped the agency’s authority.  A majority of the D.C. Circuit panel (Brown, Silberman) agreed, holding that Order 745 exceeds FERC’s jurisdiction over wholesale electricity markets under the Federal Power Act, 16 U.S.C. § 824.  The panel majority reasoned that, because demand response involves …

May 30, 2014 by Joel Eisen
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Last Friday (May 23), in Electric Power Supply Association v. FERC, a D.C. Circuit panel split 2-1 and vacated Order 745, a Federal Energy Regulatory Commission (FERC) rule designed to promote “demand response” (DR). DR is a rapidly growing and valuable means of reducing electricity demand, thereby benefiting consumers and the environment. It is also an important part of the Smart Grid, in which smart meters and devices that communicate with one another and energy service providers can further promote these goals. Indeed, former FERC Chairman Jon Wellinghoff has called DR the Smart Grid’s “killer app.”

The case tested a question of near first impression about the Smart Grid: which level of government regulates it? For now, the D.C. Circuit has held squarely for the states, concluding that DR regulation is a matter of exclusive state jurisdiction. If the decision stands, it will have …

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CPR HOMEPAGE
More on CPR's Work & Scholars.
April 27, 2022

New Report: Democratizing Our Regulatory System Is More Important Than Ever. Can FERC Lead the Way?

March 15, 2022

Pipelines, Emissions, and FERC

Nov. 11, 2021

The Need to Change Jurisdiction Over the U.S. Electric Grid

Feb. 22, 2021

Lessons from the Texas Grid Disaster: Planning and Investing for a Different Future

Jan. 22, 2021

Biden Named Richard Glick as Chair of the Federal Energy Regulatory Commission. What's Next for the Agency?

July 12, 2018

What Hath FERC Wrought?

Jan. 16, 2015

Government Files Petition for Certiorari in FERC Demand Response Case