Summary of FERC NOPR in Docket Nos. RM16-6 (Essential Reliability Services and the Evolving Bulk-Power System—Primary Frequency Response) and RM16-23/AD16-20 (Electric Storage Participation in Markets Operated by Regional Transmission
Organizations and Independent System Operators)
November 17, 2016
Docket No. RM16-6
- FERC proposes to revise the pro forma Large Generator Interconnection Agreement (“LGIA”) and the pro forma Small Generator Interconnection Agreement (“SGIA”) to require all newly interconnecting large and small generating facilities, both synchronous and non-synchronous, to install and enable primary frequency response capability as a condition of interconnection.
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November 23, 2016 Comments Off on FERC Issues Key Rulemakings On Energy Storage
FERC Issues NOPR Proposing to Include Primary Frequency Response Provisions in Pro Forma Generation Interconnection Agreements
by Christopher Nalls and Christopher Zentz
On November 17, 2016, FERC issued a Notice of Proposed Rulemaking (“NOPR”) in which it proposed modifications to its pro forma interconnection agreements that would require new generating facilities to install and enable primary frequency response equipment as a condition of interconnection. FERC explained that the proposed modifications are intended to address industry-wide reliability concerns related to declining frequency response performance. [Read more →]
November 22, 2016 Comments Off on FERC Issues NOPR Proposing to Include Primary Frequency Response Provisions in Pro Forma Generation Interconnection Agreements
by Thomas DeVita and Christopher Zentz
On November 17, 2016, FERC issued a Notice of Proposed Rulemaking (“NOPR”) in which it proposed to amend its regulations to require each Regional Transmission Organization and Independent System Operator (“RTO/ISO”) to revise its tariff to: (i) establish a participation model consisting of market rules that, recognizing the physical and operational characteristics of electric storage resources, accommodates their participation in organized wholesale electric markets; and (ii) define distributed energy resource aggregators as a type of market participant that can participate in organized wholesale electric markets under the participation model that best accommodates the physical and operational characteristics of its distributed energy resource aggregation. [Read more →]
November 22, 2016 Comments Off on FERC Issues NOPR Proposing to Better-Integrate Electricity Storage into Organized Wholesale Markets
Last week the U.S. Court of Federal Claims issued its opinion in Alta Wind I Owner Lessor C et. al. v. United States (“Alta Wind”) (available here). The court awarded the plaintiffs over $200 million in damages relating to underpaid Section 1603 grants for six different wind projects, five sold in sale-leaseback transactions and one sold in an outright sale to an unrelated party. As described below, the opinion addresses a number of fundamental issues relating to the determination of qualifying basis for Section 1603, ITC, and depreciation purposes. [Read more →]
November 8, 2016 Comments Off on Alta Wind Addresses Fundamental ITC and Depreciation Issues for Renewables
On September 14, 2016, Senate Finance Committee Chairman Orrin Hatch (R-UT) and House Ways and Means Committee Chairman Kevin Brady (R-TX) issued letters to seven companies requesting information about their financing of solar projects and use of the Section 1603 grant and other federal energy incentives. The letters do not appear to be publicly available through the Committees; however, several news organizations are reporting on the inquiry based on purported copies of the documents they obtained.
News reports say Senator Hatch and Representative Brady sent two different letters on behalf of the Committees. The first seeks information regarding yieldco ownership. This letter requests information concerning the organizational structure of each targeted company (including the ownership of any yieldcos), Section 1603 grant applications filed by the entity or any subsidiary, and whether any subsidiaries are in bankruptcy.
September 22, 2016 Comments Off on Congressional Tax Panels Investigate Solar Tax Incentives