The Federal Energy Regulatory Commission ("FERC") reviewed proposed rules that apply to regional transmission organizations ("RTOs") and independent system operators ("ISOs").
Delta Strategy Group prepared a summary of the open hearing. Highlights include:
- FERC voted unanimously to approve a notice of proposed rulemaking ("NOPR") that, among other things, requires tariff revisions for RTOs and ISOs to establish participation models and define distributed energy resource aggregators. FERC Chair Norman Bay said that the NOPR is an important and timely initiative, and that FERC continues to work toward removing barriers in electric markets.
- FERC voted unanimously to approve a final rule requiring market operators to cap each resource's incremental energy offer at the higher of $1,000 per megawatt-hour, or the resource's verified cost-based incremental energy offer, and to cap the verified cost-based incremental energy offers used to calculate locational marginal pricing at $2,000 per megawatt-hour. Chair Bay observed that the rule strikes a balance between furthering market efficiency and transparency, and ensuring consumer protection.
- FERC's Office of Enforcement provided a summary of its 2016 report, and also released two white papers: (1) " Effective Energy Trading Compliance Practices," and (2) " Anti-Market Manipulation Enforcement Efforts Ten Years after EPACT 2005."
Commentary / Paul Pantano
FERC's white paper on market manipulation shows that the agency continues to take an expansive view of its own authority.
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