On July 21, 2011, the Federal Energy Regulatory Commission (the "Commission") issued its Final Rule in its rulemaking proceeding on Transmission Planning and Cost Allocation ("Order No. 1000"). Order No. 1000 is intended to remedy perceived deficiencies with respect to transmission planning processes and cost allocation methods that inhibit the development of new transmission infrastructure. Order No. 1000 is a landmark order that was unanimously supported by the Commission (with a few dissenting comments from Commissioner Moeller). In their open meeting on the order, the Commissioners expressed the view that Order No. 1000 will profoundly affect the nation's transmission system for decades to come. By providing for greater clarity and certainty regarding transmission planning and cost allocation, the order will likely lead to greater investment in transmission infrastructure throughout the nation. Order No. 1000 establishes certain minimum requirements and sets of principles that must be followed but then allows for considerable flexibility in achieving compliance consistent with those principles.
As briefly summarized below, Order No. 1000 proposes the following major reforms to the requirements of the Open Access Transmission Tariff:
The rule establishes three requirements for transmission planning:
Cost Allocation Reforms
The rule establishes three requirements for transmission cost allocation:
Nonincumbent Developer Reforms
Some Key Features and Implementation Issues of Order No. 1000
Joseph Fagan will be the moderator of a panel discussion during the Northeast Energy and Commerce Association's Annual Conference on Natural Gas and Fuels on September 27 in Marlborough, Mass.
Florence Davis and Dave Doot authored an article titled "The Future of Distributed Energy in New York" for the Energy Law Report.
Day Pitney Alert
Jamie Blackburn moderated the panel "EBA Energizer: Distributed Generation Resources in the DC/Maryland/Virginia Region," which discussed the current state of distributed generation resource integration in the Metro-DC area.
Day Pitney was pleased to be a Premier Sponsor of the Seventh Annual New England Women in Energy and the Environment (NEWIEE) Gala, which took place on April 6, at the Boston Park Plaza.
Day Pitney Press Release
David Doot was quoted in an article, Worries Abound As FERC Quorum Shortfall Hits 3-Month Mark, published in Law360.
Joseph Fagan was quoted in an article, "1st Circ. Bolsters State Powers In Gas Pipeline Reviews," published in Law360.
Joseph Fagan was quoted in an article, "LNG projects could face new scrutiny if US invokes 'protect the public' clause," published in S&P Global Market Intelligence.
Jed Davis was quoted in a breaking news article, "New York eases proposed cyber regulations after industry complaints," published by Reuters.