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
Day Pitney Alert
Flossie Davis, Thomas Havens and Jennifer Galiette wrote an article, "NY Retail Electricity Order Vacated — For Now," for Law360. The article is about the recent decision by the Supreme Court for the County of Albany, New York, to vacate key directives of the New York Public Service Commission (PSC) in its "Order Resetting Retail Energy Markets and Establishing Further Process" issued on Feb. 23, also known as the PSC reset order.
Day Pitney Alert
Jennifer Galiette wrote an article, "State Strategy to Focus on Energy, Building Processes and Transportation," for The Connecticut Law Tribune. The article is about the Connecticut Department of Energy and Environmental Protection's (DEEP) announcement in May that it is beginning to develop a new statewide Comprehensive Energy Strategy (CES) for Connecticut.
On July 12, Day Pitney partner Beth Barton, President of the New England Women in Energy and the Environment (NEWIEE), will welcome attendees at NEWIEE’s second annual panel in the "New England Women Shaping the Agenda in Energy and Environment" series. This year, this event will take place at Tufts University in the ASEAN Auditorium at The Fletcher School in Medford, Massachusetts. The panel, including Maryrose Sylvester, President and CEO of Current, Powered by GE; Cheryl Warren, National Grid USA Board Director and Innovation Strategist; and Cynthia Arcate, President and CEO of PowerOptions, will discuss the business behind getting to clean energy and environment. Professor Barbara Kates-Garnick of the Fletcher School and Center for International Environment and Resource Policy will be the moderator for the panel discussion. Registration is open for the event on NEWIEE’s website.
Jed Davis was quoted in a breaking news article, "New York eases proposed cyber regulations after industry complaints," published by Reuters.
Joe Fagan was quoted in an article, "For rebuffed Jordan Cove LNG, pipeline was the stumbling block at FERC," in S&P Global Market Intelligence.
Joe Fagan was quoted in an article, "Pipeline Fights May Determine Scope Of Climate Reviews," in Law360. The article is about how an increase in legal challenges by environmental groups claiming that the Federal Energy Regulatory Commission must examine the climate change impacts of increased natural gas drilling before approving pipelines could help define the boundaries of a landmark 2004 U.S. Supreme Court ruling that limited the scope of federal environmental reviews to actions within an agency's authority.
Joe Fagan was quoted in an article, "NY Nuke Plant Subsidies Will Likely Face Legal Battle," in Law360. The article is about the challenges that nuclear plant subsidies offered by New York state in its newly announced clean energy standard will likely face due to a U.S. Supreme Court's recent decision.
Harold Blinderman was quoted in a Law360 article,"EPA's 40-Year Battle For Water Cooling Regs: A Cheat Sheet," which reviewed the status of litigation currently before the Second Circuit Court of Appeals challenging federal environmental regulations regarding the usage of cooling water by existing power plants and factories.