Below are summaries of the agenda items for the Federal Energy Regulatory Commission's open meeting to be held on January 18, 2024, pursuant to the sunshine notice released on January 11, 2024.
In this issue
- Electric Items
- Hydro Items
- Certificate Items
Electric
E-1 – System Energy Resources, Inc. (Docket Nos. ER22-24-003, ER22-24-000). On November 9, 2023, the presiding Administrative Law Judge issued a certification of partial settlement in Docket No. ER22-24-003 regarding tariff changes with respect to rate base for the prepaid and accrued pension costs for the Entergy operating companies qualified and non-qualified defined benefit pension plans. Agenda item E-1 may be an order on the certification of partial settlement.
E-2 – Gregory and Beverly Swecker v. Midland Power Cooperative; Gregory and Beverly Swecker (Docket Nos. EL23-83-002, QF11-424-012). On July 18, 2023, Gregory and Beverly Swecker (collectively, Sweckers) filed a petition for disgorgement (Petition) against Midland Power Cooperative (Midland) for $876,174.48, the amount to which the Sweckers assert they are entitled based on their claim that, since 2004, they have not been paid an appropriate avoided cost rate. On September 15, 2023, the Commission issued a Notice of Intent Not to Act on the Swecker's petition. On September 20, 2023, as supplemented on October 6, 2023, Gregory, and Beverly Swecker (Sweckers) filed a request for rehearing of the Commission's September 15, 2023, Notice of Intent Not to Act. On October 24, 2023, the Commission issued an order denying reconsideration and clarification. On October 31, 2023, the Sweckers filed a request for rehearing of the Commission's October 24, 2023, order. Agenda item E-2 may be an order on the Sweckers request for rehearing.
E-3 – Manitowoc Public Utilities (Docket No. ER23-977-001, ER23-977-000). On January 30, 2023, Manitowoc Public Utilities (MPU) submitted proposed Rate Schedule No. 3, which sets forth a monthly System Support Resource (SSR) payment for costs associated with the continued operation of Lakefront Unit 9. The Commission accepted MPU's filing, suspended it for a nominal period, effective February 1, 2023, as requested, subject to refund, and established hearing and settlement judge procedures. On October 11, 2023, the settling parties negotiated an agreement in principle and filed a settlement with a revised monthly SSR payment. On November 14, 2023, the presiding Settlement Judge issued an order certifying the settlement as uncontested and recommending it for Commission approval. Agenda item E-3 may be an order on the MPU uncontested settlement.
E-4 – Long Lake Solar, LLC (Docket No. ER24-327-000). On October 31, 2023, Long Lake Solar, LLC (Long Lake Solar) filed a request for a limited and prospective waiver of Section 4.4.4 of Attachment X of the Midcontinent Independent System Operator, Inc.'s (MISO) Tariff and Section 2.3.1 of Long Lake's Amended and Restated Generator Interconnection Agreement to accommodate a short extension of the commercial operation date beyond the three-year limitation on extensions. Agenda item E-4 may be an order relating to Long Lake Solar's waiver request.
E-5 – Three Corners Solar, LLC (Docket No. ER22-2643-000). On August 11, 2022, Three Corners Solar, LLC (Three Corners) filed an application for market-based rate authority with an accompanying tariff. The proposed market-based rate tariff provides for the sale of energy, capacity, and ancillary services at market-based rates. In its market-based rate application Three Corners represented that it had made sales of electric power as of June 1, 2022, prior to having requested and obtained market-based rate authorization. The Commission granted Three Corners' market-based rate application but ordered Three Corners to make time-value refunds. On November 9, 2022, Three Corners submitted its refund report. On May 5, 2023, Three Corners submitted a supplement to its earlier refund report. Agenda item E-5 may be an order on Three Corners' supplement refund report filing.
E-6 – E. BarreCo Corp LLC (Docket No. ER21-2722-001). On August 20, 2021, E. BarreCo Corp LLC (E. BarreCo) filed an application (the MBR Application) for market-based rate authority. The Commission approved the market-based rate application on October 5, 202. In response to disclosures in the E. BarreCo's application, regarding sales made prior to Commission authorization, the Commission directed E. BarreCo to make refunds, with interest, within thirty (30) days and to submit a refund report within fifteen (15) days thereafter describing the basis for and calculation of the refunds paid (the Refund Report). E. BarreCo submitted the Refund Report was filed on November 30, 2021. On October 28, 2022, E. BarreCo Corp LLC filed a revised refund report providing for additional refunds for the time value of gross revenues received (Revised Refund Report). On November 16, 2022, E. BarreCo submitted an erratum to Exhibit A of the Revised Refund Report, to revise the incorrect interest rates used for the third and fourth quarters of 2022. The updated interest rates resulted in an additional refund paid. Agenda item E-6 may be an order on E. BarreCo's Revised Refund Report and errata filing.
E-7 – Public Service Electric and Gas Company and PJM Interconnection, L.L.C. (Docket Nos. ER20-2004-003, ER20-2004-004). On February 17, 2023, Public Service Electric and Gas Company (PSE&G), through PJM Interconnection, L.L.C. (PJM), filed its additional Order No. 864 compliance filing that included proposed revisions to PSE&G's transmission formula rate template under PJM's Open Access Transmission Tariff (Tariff). These revisions include, among other things, a proposed accumulated deferred income tax (ADIT) worksheet that is found in Attachment 9 of the Formula Rate (ADIT Worksheet). On April 18, 2023, the Commission issued a Deficiency Letter informing PSE&G that its additional Order No. 864 compliance filing was deficient, and that additional information was required in order to process the compliance filing, specifically with respect to Exhibit 5 of the ADIT Worksheet. On May 18, 2023, PSE&G submitted its deficiency response. On June 8, 2023, New Jersey Division of Rate Counsel (NJ Rate Counsel) filed a Protest asking the Commission to direct PSE&G to add certain additional explanatory “Notes” to its EDIT/DDIT worksheets for transparency and clarification purpose. On June 23, 2023, PSE&G filed a Motion for Leave to Answer and Answer in response to NJ Rate Counsel's Protest. PSE&G argued that EDIT/DDIT worksheets are already adequately clear and transparent, and they comply with the Commission's directives. Nevertheless, to increase transparency on certain issues, PSE&G agreed to add certain additional Notes to its EDIT/DDIT worksheets in an additional compliance filing to be made within thirty (30) days following the Commission's issuance of an order accepting PSE&G's February 17, 2023, compliance filing. Agenda item E-7 may be an order on PSE&G's additional compliance filing and its related Answer to NJ Rate Counsel's protest.
E-8 – Appalachian Power Company, AEP, Appalachian Transmission Company Inc., American Municipal Power, Inc., et al. v. Appalachian Power Company, et al., and AEP Appalachian Transmission Company Inc., et al. (Docket Nos. ER17-405-000, ER17-406-000, EL23-51-000). On March 8, 2023, the American Municipal Power, Inc. (AMP), Blue Ridge Power Agency, Indiana Municipal Power Agency, Mishawaka Utilities, Old Dominion Electric Cooperative (ODEC), and Wabash Valley Power Association, Inc. (collectively, Joint Customer Group) made a Joint Formal Challenge and Complaint under the American Electric Power East Companies (AEP East Companies) Formula Rate Protocols contained in Attachments H-14A and H-20A Appendix A of the PJM Interconnection, L.L.C. (PJM) Open Access Transmission Tariff (OATT) in Docket Nos. ER17-405 and ER17-406. On March 14, 2023, the Joint Customers submitted the same filing in EL23-51-000 (together with the March 8, 2023, filing, the Joint Formal Challenge) indicating due to an administrative oversight the March 8th filing was not made in “EL” complaint docket. The Joint Formal Challenge raises three issues related to the AEP East Companies' 2022 Annual Update. The primary challenge is an allegation that the AEP East Companies' implementation of the Commission's stand-alone methodology to determine appropriate Accumulated Deferred Income Tax (ADIT) adjustments to rate base is improper, and also not permitted. The two other challenges were to the AEP East Companies' inclusion of certain ADIT items (relating to rate refunds and contributions in aid of construction in rate base. On April 24, 2023, the AEP East Companies submitted an Answer to the Joint Formal Challenge arguing it lacks merit and should be dismissed. On May 10, 2023, the Joint Customers submitted a Motion for Leave to Answer and Answer to the AEP East Companies' April 24th filing arguing that the AEP East Companies' answer includes misleading arguments, confuses the issues, and fails to demonstrate that the AEP East Companies have properly implemented their filed formula transmission service rates in accordance with Attachments H-14 and H-20 of the PJM OATT. On May 25, 2023, the AEP East Companies submitted a Response to the Motion for Leave to Answer and Answer of the Joint Customer Group submitted on May 10, 2023. The AEP East Companies argued that the Joint Customers motion is an incomplete and unpersuasive response to AEP East's answer submitted on April 24, 2023, and should be denied. Agenda item E-8 may be an order on the Joint Formal Challenge.
E-9 – AEP Oklahoma Transmission Company, Inc. (Docket No. ER18-194-005); Public Service Company of Oklahoma (Docket No. ER18-195-005); Arkansas Electric Cooperative Corporation, et al. v. Public Service Company of Oklahoma, et al. (Docket No. EL23-71-000). On May 22, 2023, Arkansas Electric Cooperative Corporation (AECC), East Texas Electric Cooperative (ETEC), Northeast Texas Electric Cooperative, Inc. (NTEC), and Golden Spread Electric Cooperative, Inc. (Golden Spread) (collectively, Joint Customers) filed a formal challenge and complaint, pursuant to sections 206, 306, and 309 of the Federal Power Act (FPA), against the AEP West Operating Companies and the AEP West Transmission Companies (collectively, AEP West). In the complaint, Joint Customers asserted that the formula transmission service rates changed by AEP West for Rate Year 2021 violated certain provisions of the Formula Rate Implementation Protocols in the Southwest Power Pool, Inc. (SPP) Open Access Transmission Tariff (OATT). Namely, Joint Customers stated that AEP West implemented a new method in its ratemaking—furnished in its 2022 Annual Update—whereby it will switch the treatment of accumulated deferred income taxes (ADIT) related to Net Operating Losses (NOL) from a consolidated basis to a standalone basis. Accordingly, Joint Customers alleged that the change in ADIT methodology represents a prohibited separate return method, an unauthorized change to the filed transmission formula rate pursuant to the SPP OATT, and a violation of a prior settlement approved by the parties on February 8, 2019, regarding the transmission rates of AEP West. On June 21, 2023, AEP West submitted an answer to the formal challenge and protest, stating that it is permitted to implement the standalone methodology to its ADIT treatment without being compelled to make a section 205 filing under the FPA. Additionally, AEP West asserts that recent guidance from the Internal Revenue Service resulted in its own re-evaluation of NOL treatment which led to the implementation of the new methodology. AEP West states that it did not change its formula rate, nor did it violate the filed rate doctrine, since the methodology revision only comprised changes to inputs in the formula rate worksheets and not the rate itself. On July 28, 2023, Joint Customers filed the same formal challenge and complaint in the existing ER dockets. Agenda item E-9 may be an order on the formal challenge and complaint.
E-10 – arGo Partners GP LLC (Docket No. EL23-43-000). On February 16, 2023, arGo Partners GP LLC (arGo), on behalf of itself and its current and future subsidiary companies that are classified as holding companies or service companies (collectively, the arGo Companies), submitted a petition for declaratory order. arGo Companies sought clarification from the Commission that a recent transaction will not affect the existing waivers of the accounting, record-retention, and reporting requirements under the Public Utility Holding Company Act (PUHCA). The transaction, by which an affiliate of arGo Companies will acquire a 50 percent interest in Brookfield Smoky Mountain Holdings LLC (BSMH), was granted approval by the Commission on February 7, 2023, pursuant to section 203 of the FPA. arGo Companies stated that the new ownership interest in BSMH will comprise additional electric generation and transmission facilities that include an additional exempt wholesale generator (EWG) with market-based rate authority as well as an additional independent transmission-only company. Agenda item E-10 may be an order on the petition for declaratory order.
E-11 – arGo Partners GP LLC (Docket No. EL23-41-000). The above-captioned proceeding mirrors the filing in agenda item E-10, where arGo Companies submitted a petition for declaratory order stemming from the transaction to acquire 50 percent interest in BSMH and maintain certain reporting exemptions under PUHCA. Agenda item E-11 may be an order on the petition for declaratory order.
Hydro
H-1 – Village of Highland Falls High-Point Utility, LDC (Docket No. P-7656-019). On June 20, 2023, the Commission issued a compliance order pertaining to the Village of Highland Falls High-Point Utility, LDC (Highland Falls) as the licensee for the Buttermilk Falls Hydroelectric Project No. 7656. In the compliance order, the Commission found that Highland Falls is in violation of Article 5 of the license for the project, has abandoned the project since 2011, and is in violation of the approval order transferring the license for the project contingent upon Highland Falls acquiring the title to the properties under the license and submitting a viable plan to restore project operation. The Commission instructed Highland Falls to come into compliance within 90 days of the order. On July 31, 2023, Richard and Marcia Parry (the Complainants) filed a request for rehearing of the June 20 order. In the rehearing request, Complainants ask the Commission to revoke the license for the project. Agenda item H-1 may be an order on the request for rehearing.
H-2 – Public Utility District No. 1 of Chelan County, Washington (Docket No. P-943-142). On May 16, 2023, Public Utility District No. 1 of Chelan County, Washington (Chelan PUD) filed a request for approval of power sales agreement under section 22 of the FPA. The agreement relates to the sale of electricity from the Rocky Reach Hydroelectric Project No. 2145 and Rock Island Hydroelectric Project No. 943 from Chelan PUD to Avista Corporation. Chelan PUD submitted the agreement to the Commission as it extends beyond the existing license term of the Rock Island project. Agenda item H-2 may be an order on the request for approval of the agreement.
H-3 – Grand River Dam Authority (Docket No. P-1494-455). On March 30, 2023, Grand River Dam Authority (GRDA) submitted a motion for procedures governing remand, pursuant to Rule 212 of the Rules of Practice and Procedure of the Commission. GRDA requested that the Commission issue an order establishing the procedure to govern the remand of a decision on January 18, 2022 by the United States Court of Appeals for the District of Columbia Court (DC Circuit) between itself and the City of Miami, Oklahoma (City). In the decision, the DC Circuit stated that the Commission had not addressed whether the existing license for the Pensacola Project, Project No. 1494 obligated GRDA to acquire ownership of approximately 13,000 acres in and around City. Agenda item H-3 may be an order on the motion to compel procedures governing remand in light of the DC Circuit decision.
Certificates
C-1 – Tennessee Gas Pipeline Company, L.L.C. (Docket No. CP22-493-000). On July 22, 2022, Tennessee Gas Pipeline Company, L.L.C. (Tennessee) filed an application (Application) with the Commission under Section 7(c) of the Natural Gas Act, as amended, seeking a certificate of public convenience and necessary to construct, install, own, operate, and maintain a new interstate natural gas pipeline and ancillary facilities in the state of Tennessee (the Cumberland Project). Specifically, the Cumberland Project would involve the construction and operation of the following facilities: Cumberland Pipeline (construction of approximately 32 miles of new 30-inch-diameter natural gas pipeline, which would connect at Tennessee's existing Line 100-3 and Line 100-4); Pressure Regulation Station (construction of two new bi-directional back pressure regulation facilities on Line 100-3 and Line 100-4 at milepost 0.0 of the proposed new Cumberland Pipeline); Cumberland Meter Station (construction of a new meter station at the terminus of the Cumberland Pipeline); launcher and receiver (construction of in-line inspection traps, for in-line inspection tools at each end of the Cumberland Pipeline); and mainline valves (construction of three new mainline valves). According to Tennessee, the Cumberland Project would allow it to provide up to 245,000 dekatherms per day of firm natural gas transportation capacity to Tennessee Valley Authority. Commission staff issued a draft environmental impact statement (EIS) on February 3, 2023, and a final EIS on June 9, 2023. In the final EIS, Commission staff conclude that approval of the Cumberland Project would result in some adverse environmental impacts, but that, with the exception of climate change impacts, these impacts would be reduced to less-than-significant levels because of avoidance, minimization, and mitigation measures proposed by Tennessee and those recommended by Commission staff in the final EIS. Such final EIS further provided that climate change impacts associated with the Cumberland Project are not characterized as significant or insignificant. Agenda item C-1 may be an order on the Application.
C-2 – Transcontinental Gas Pipe Line Company, LLC (Docket No. CP22-495-000). On August 9, 2023, Transcontinental Gas Pipe Line Company, LLC (Transco) filed an application (Application) with the Commission, pursuant to Section 7(c) of the Natural Gas Act, seeking authorization to construct and operate one new compressor station in Fort Bend County, Texas; modify six existing compressor units in Hardin County, Texas; and perform programming updates at an existing compressor station in Victoria County, Texas (collectively, the Texas to Louisiana Energy Pathway Project). According to Transco, the Texas to Louisiana Energy Pathway Project will provide 364,000 dekatherms per day of firm transportation capacity from the Valley Crossing interconnection to the Station 65 Pooling Point. On June 9, 2023, Commission staff issued an environmental assessment for the Texas to Louisiana Energy Pathway Project, concluding that approval of the Texas to Louisiana Energy Pathway Project, with appropriate mitigating measures, would not constitute a major federal action significantly affecting the quality of the human environment. Agenda item C-2 may be an order on the Application.
C-3 – Golden Triangle Storage, LLC (Docket No. CP23-511-000). On July 14, 2023, Golden Triangle Storage, LLC (GTS) filed an application (Application) pursuant to Section 7(c) of the Natural Gas Act for authorization to amend the certificate of public convenience and necessity (Certificate) issued by the Commission in Docket Nos. CP07-414, et al., to increase the authorized maximum rates at which GTS may withdraw natural gas from and inject gas into its storage facility. Specifically, GTS seeks to amend its Certificate to permit GTS to withdraw up to 680 million cubic feet per day from and inject up to 765 million cubic feet per day into the GTS Storage Facility authorized by such Certificate. According to GTS, the proposed increases in the maximum authorized withdrawal and injection rates would allow GTS to operate the storage facility in the most efficient way possible and customers would deliver and receive more natural gas per day, and that there also would be no termination or reduction in service to customers as a result of the proposed increases. Accordingly, GTS also requests the Commission reaffirm its determination that with the increases in its authorized maximum daily withdrawal and injection rates, GTS would be authorized to charge market-based rates for the storage services it offers. On July 26, 2023, Commission staff issued an environmental assessment report in which it concluded that no environmental impact is involved with the approval of the Application. Agenda item C-3 may be an order on the Application.
C-4 – Columbia Gas Transmission, LLC (Docket No. CP23-82-000). On March 2, 2023, Columbia Gas Transmission, LLC (Columbia Gas) filed an application (Application) with the Commission pursuant to Section 7(b) of the Natural Gas Act, as amended, and Part 157 of the Commission's regulations, for authorization to abandon 37 Injection/Withdrawal Wells and related pipeline and appurtenances within the Lucas Storage Field and Pavonia Storage Field in Ashland and Richland Counties, Ohio (collectively, the Lucas and Pavonia Wells Abandonment Project). Specifically, the proposed Lucas and Pavonia Wells Abandonment Project consists of: (a) the abandonment of 37 injection/withdrawal wells at the Lucas and Pavonia Storage Fields by permanently plugging and abandoning such wells in place; (b) the abandonment of approximately 41,423 feet of associated 3- to 6-inch-diameter pipeline, of which 39,402 feet would be capped and abandoned in place and 2,021 feet would be abandoned by removal; and (c) the abandonment by removal of all associated aboveground appurtenances, including (but not limited to) tie-in valves, pipeline markers, cathodic protection test stations, rectifiers, casing vents, and above-ground pipeline blowdown vents. On September 8, 2023, Commission staff issued an environmental assessment for the Lucas and Pavonia Wells Abandonment Project, concluding that approval of the Lucas and Pavonia Wells Abandonment Project, with appropriate mitigating measures, would not constitute a major federal action significantly affecting the quality of the human environment. Agenda item C-4 may be an order on the Application.
C-5 – Transcontinental Gas Pipe Line Company, LLC (Docket No. CP17-101-005). On May 3, 2019, the Commission issued an order (Order) authorizing Transcontinental Gas Pipe Line Company, LLC (Transco) to construct and operate an incremental expansion of its existing pipeline system to provide up to 400,000 dekatherms per day of firm transportation capacity to Brooklyn Union Gas Company and KeySpan Gas East Corporation (collectively referred to as National Grid) to serve National Grid's residential and commercial customers in the New York City area (the Northeast Supply Enhancement Project). Ordering Paragraph (B)(1) of the Order required Transco to complete the authorized construction of the Northeast Supply Enhancement Project and make them available for service within two years of the date of the Order (i.e., by May 3, 2021). On March 19, 2021, Transco filed with the Commission – and the Commission approved on May 20, 2021 – a request for a two-year extension of time, until May 3, 2023, to complete and make available the Northeast Supply Enhancement Project. On April 27, 2023, Transco filed a second request for extension of time (the Second Extension Request), requesting an additional two years, until May 3, 2025, to complete and make available the Northeast Supply Enhancement Project. Transco states in its Second Extension Request that such extension is appropriate because it will allow Transco to continue reviewing the scope of work under the Northeast Supply Enhancement Project to not only meet National Grid's firm transportation capacity needs but also to address water quality concerns raised by New York and New Jersey in their respective denials of water quality certification for the Northeast Supply Enhancement Project under Section 401 of the Clean Water Act. Transco explains that such extension will have no environmental impacts beyond those which the Commission evaluated and found acceptable in issuing the Order, nor will such extension have any effect on the Commission's findings in the Order related to the public interest or the Certificate Policy Statement. Transco also asserts that there is a continuing need for the Northeast Supply Enhancement Project. Agenda item C-5 may be an order on the Second Extension Request.
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