Speaking Energy

On January 7, 2022, the Federal Energy Regulatory Commission (FERC) issued a Final Rule to amend its regulations governing the maximum civil monetary penalties assessable for violations of statutes, rules and orders within FERC’s jurisdiction. The Final Rule is a result of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, which requires each federal agency to issue an annual inflation adjustment by January 15 for each civil monetary penalty provided by law within the agency’s jurisdiction. The adjustments in the Final Rule represent an increase of approximately 6.2 percent for each covered maximum penalty. FERC’s adjusted maximum penalty amounts, which will apply at the time of assessment of a civil penalty regardless of the date on which the violation occurred, are set forth here and will become effective upon publication in the Federal Register.

The board of managers of PJM Interconnection, L.L.C. (PJM) has directed PJM to prepare a proposal for filing with the Federal Energy Regulatory Commission (FERC) that will substantially reform the Minimum Offer Price Rule (MOPR) in PJM’s capacity market. After considering nine reform proposals in the PJM stakeholder process, the board has selected for filing the proposal put forth by PJM, which received the highest sector-weighted vote from PJM members. PJM has expressed a desire to have the reformed market rule in place for the next Base Residual Auction, which is scheduled for December 2021.

In a unanimous decision issued this week, the U.S. Court of Appeals for the 10th Circuit sided with rooftop solar owners in a dispute over the jurisdictional scheme established by the Public Utility Regulatory Act (PURPA). The decision revives the solar group’s federal suit, which challenges monthly fees imposed on customers with rooftop solar by a municipal utility in New Mexico.

(Houston) – Akin Gump is pleased to announce it has released its “2020 Energy Year in Review,” which examines the current state of the global energy market and highlights the energy matters with which the firm was involved last year across the following areas:

• Mergers, Acquisitions & Strategic Transactions
• Capital Markets
• Financing
• Project Development
• Financial Restructuring
• Energy Litigation.

On August 6, 2020, the D.C. Public Service Commission (PSC) amended the D.C. Municipal Regulations to allow “net energy metering (‘NEM’) systems for individual behind-the-meter generators to go beyond 100 percent of the customer’s historical usage and customer payment for excess generation.”¹ Specifically, effective upon publication of the Order in the D.C. Register, eligible NEM “customer-generators”² in D.C. “can increase the generation threshold by 20% annually, starting in 2020 until the generation threshold reaches 200% in 2024.”³ Covered energy systems include those not larger than 1,000 kW powered by “renewable resources, cogeneration, fuel cells, or microturbines.”⁴ The change will allow eligible customer-generators to design and build larger behind-the-meter renewable energy systems (up to 1,000 kW) to help satisfy increases in demand for applications such as electric vehicle charging, as well as to increase their net metering compensation.