NEM is pleased to announce that it will be hosting its New England Energy Policy Summit on October 12-14, 2015 in Cambridge, Massachusetts. A welcome reception will be held on the evening of October 12, 2015, at the Hyatt Regency Cambridge, and a reception will be held the evening of October 13, 2015, at the Harvard Faculty Club. Please save these dates. An agenda is forthcoming. You may register at this hotlink. A block of rooms has been set aside for the event at the Hyatt Regency Cambridge at the NEM rate of $279/night ((617)441-6494).

The U.S. Supreme Court this week granted certiorari in the case of EPSA v. FERC regarding FERC’s Order 745 and demand response compensation.

In granting certiorari, the Supreme Court directed:

“The petitions for writs of certiorari are granted limited to the following Questions: 1) Whether the Federal Energy Regulatory Commission reasonably concluded that it has authority under the Federal Power Act, 16 U. S. C. 791a et seq., to regulate the rules used by operators of wholesale electricity markets to pay for reductions in electricity consumption and to recoup those payments through adjustments to wholesale rates. 2) Whether the Court of Appeals erred in holding that the rule issued by the Federal Energy Regulatory Commission is arbitrary and capricious.”

U.S. Senator Murkowski, Chair of the Senate Energy and Natural Resources Committee, introduced seventeen legislative proposals intended to modernize the country's energy policies. Of particular note is s1222, Continuity of Electric Capacity Resources Act. The bill would require RTOs to file reports assessing available electric capacity resources, pending unit retirements, projected future needs, and current and projected reliability of their systems. The RTOs would be required to file tariffs to promote the diversity of generation and availability of transmission facilities, "an enhanced opportunity for self-supply of electric capacity resources by electric cooperatives, Federal power marketing agencies, and State utilities with a service obligation," short and long term reliability assurance, and prudent investment in capacity resources.

The House Energy and Power Subcommittee released a discussion draft this week on Energy Reliability and Security to be included in its Architecture of Abundance energy legislation.

Of particular note, the House discussion draft pertains the capacity markets in RTOs/ISOs as follows:

‘‘EXISTING CAPACITY MARKETS.—
(1) FILING.—Not later than 30 days after the date of enactment of this section, the Commission shall direct each Regional Transmission Organization, and each Independent System Operator, that operates a capacity market, or a comparable market intended to ensure the procurement and availability of sufficient future electric energy resources, to demonstrate, by filing a new schedule under section 205, or, if appropriate, filing a declaration with respect to a schedule or schedules under such section then in force, that the structure of such market meets the following criteria:
(A) The structure of such market is based on integrated system planning practices that include—
(i) a diverse and flexible generation portfolio;
(ii) long-term reliability and stable pricing for customers;
(iii) price adequacy and certainty for power generators over a long-term planning and investment horizon; and
(iv) enhanced operational performance assurance during peak-demand periods;
(B) The structure of such market provides for a sufficient supply of reliable electric energy to load-serving entities (as defined in section 217) from physical generation facilities that have reliability attributes that include—
(I) operational characteristics that enable the generation of electric energy on a continuous basis for an extended period of time for each day over a period of not less than 30 days;
(ii) in order to generate electric energy on a continuous basis for an extended period of time
(I) for each day over a period of not less than 30 days
(aa) possession of adequate fuel on-site; or
(bb) the operational ability to generate electric energy from more than one fuel source; or
(II) fuel certainty, through contractual obligations, that ensures adequate fuel supply at stable pricing without risk of interruption;
(iii) operational characteristics that enable the generation of electric energy during emergency and severe weather conditions; and
(iv) essential reliability services, including frequency support and voltage support, to maintain reliability of the bulk power system (as defined in section 215).”

The full texts of the House and Senate Bills are available on the NEM Website.