Pacific Northwest Utilities Seek Key FERC Declarations Regarding New Regional Market

Sep 23, 2015

Reading Time : 1 min

The petition formally puts before FERC, for the first time, many of the key jurisdictional and policy issues that have overshadowed earlier efforts to develop centralized market structures in the West and Northwest. The petitioners ask FERC to declare that (1) a completely voluntary market–where each participant is free to join or withdraw from the market at its choosing, and offer to buy or sell power at any time and level– is consistent with law; (2) a decision by a generator not to offer to sell into the market will not, by itself, demonstrate intent to manipulate the market, and that when evaluating intent, FERC will take into account the unique factors affecting hydropower marketing and operations; (3) participation in the market by nonjurisdictional entities (e.g., Bonneville, Western Area Power Administration, City of Seattle) will not affect their statutory exemption from FERC jurisdiction; and (4) Mobile-Sierra protection can be applied to certain elements of the anticipated agreement among the CCED Market sponsors, which would require application of a high (public interest) standard of review to changes to, for example, the voluntariness of the market, or any expansion beyond the 15-minute energy market.

The petition represents a significant step toward the creation of a centralized energy market in the Pacific Northwest.  The willingness of the CCED Market sponsors to take the affirmative step of formally seeking FERC declarations needed to advance the market suggests that there is considerable momentum behind this.  It leaves for another day, however, many market design details that will be important to market participants across the West, including how the CCED Market would interact with other market structures in the region (e.g., the California Independent System Operator (“CAISO”) markets and the broader Energy Imbalance Market (EIM) operated by CAISO).

Reprinted with permission from the Friday Burrito, published by 2015 Foothill Services Nevada Inc.

Share This Insight

© 2024 Akin Gump Strauss Hauer & Feld LLP. All rights reserved. Attorney advertising. This document is distributed for informational use only; it does not constitute legal advice and should not be used as such. Prior results do not guarantee a similar outcome. Akin is the practicing name of Akin Gump LLP, a New York limited liability partnership authorized and regulated by the Solicitors Regulation Authority under number 267321. A list of the partners is available for inspection at Eighth Floor, Ten Bishops Square, London E1 6EG. For more information about Akin Gump LLP, Akin Gump Strauss Hauer & Feld LLP and other associated entities under which the Akin Gump network operates worldwide, please see our Legal Notices page.