October 23, 2014
FERC Opens Investigations Probing Generators, Potential Gas Index Gaming
FERC has opened three investigations into questionable activity from last winter but has not found evidence that “widespread or sustained market manipulation” contributed to high natural gas and power prices.
Revised Capacity Performance Plan Wins Bowring’s Support
PJM’s Oct. 7 revisions to its Capacity Performance proposal appear to have won over Independent Market Monitor Joe Bowring.
OPSI Annual Meeting 2014
State Officials Challenge EPA Assumptions on Carbon Rule
State officials and generation owners promised last week to challenge the assumptions the EPA used in its proposed carbon rule.
‘Poof’ Goes the Demand Response?
Demand response aggregators told PJM officials that the RTO’s proposed response to a court ruling narrowing federal jurisdiction over DR is overly broad.
APPA Study Rekindles Capacity Debate
The American Public Power Association says a new study proves that the mandatory capacity markets in PJM, ISO-NE and NYISO don't adequately incent new generation.

Va. SCC Staff Blasts EPA Carbon Rule
The EPA’s proposed regulations on carbon emissions would increase electric bills and harm reliability, Virginia SCC staff members said.
NETOs to Pay Refunds in ROE Case
FERC affirmed its June order reducing the return on equity for the NETOs, ordering the companies to provide refunds from Oct. 1, 2011.
The News from MISO
FERC Orders ROE Hearing on MISO TOs
FERC ordered a hearing on a complaint from MISO industrial customers that the 24 transmission owners’ return on equity (ROE) is too high.
IPL Wins Waiver from MISO Must-Offer Rule for Retiring Eagle Valley Units
FERC approved IPL’s request for a waiver from MISO’s must-offer requirement, relieving the company of having to replace the capacity from its retiring Eagle Valley units.
NIPSCO, Enviros Reach Pact on Renewables Pricing
NIPSCO has reached an agreement with environmentalists and consumer advocates on a new renewables tariff that will boost payments to small wind farms while cutting prices for solar power.
Exelon Building Zero-Emissions Allam Cycle Plant in Texas
Exelon is joining with two other companies to build an emission-free natural gas-fired power plant using a new technology called the Allam Cycle.
Company Briefs
News briefs on companies in the PJM Interconnection this week, including Dynegy, FirstEnergy, Dominion, Southern Co. and Xcel Energy.
Federal Briefs
News briefs on the federal agencies that impact those doing business in PJM's footprint. This week, we highlight FERC, the DOE, the NRC and the BOEM.
State Briefs
News briefs from the states within the PJM footprint. This week we include Delaware, Illinois, Indiana, Kentucky, Michigan, New Jersey, Ohio, Pennsylvania and Virginia.
Are We Ready?
Coal Retirements, Pipeline Constraints Undermine Confidence for Next Winter
The reliability cracks that became apparent last winter are more than a function of the polar vortex. They exposed long-term challenges that will take years to address.
PJM Hoping Testing Makes the Difference Before Winter
PJM is hoping that testing of little-used generating units will ensure they are available if cold weather strains its reserve margin.
MISO: Reserves Eroding Before Winter
“The erosion of excess reserves understandably is of great concern to us all," Organization of MISO States President Eric Callisto told FERC.
NYISO: ‘Well Prepared’ for Winter
If you want to see the value of dual-fuel capability, look no further than New York, where 47% of the generation can run on oil or natural gas.
ISO-NE in Precarious Position for Winter
ISO-NE "will be in a precarious operating position for the next several winters due to the natural gas pipeline constraints," spokeswoman Marcia Blomberg said.
Awaiting FERC Action, PJM Floats ‘Trial Balloon’ on DR Post-EPSA

PJM officials said they are optimistic that demand response will continue its role in capacity and energy markets although only 30% of current DR will be immediately eligible under the RTO’s proposed response to the EPSA decision.

Lower Penalties, More Flexibility in Revised PJM Capacity Performance Proposal

Holding firm on their plans to redefine the capacity market, PJM officials Tuesday offered a revised proposal that they said is less punitive and restrictive.

Looking to Build Infrastructure, Moniz Comes to Wall Street
Energy Secretary Ernest Moniz traveled to New York last week to get Wall Street’s perspective on challenges to financing electric transmission and other energy infrastructure.
Constellation, Comverge Merging Demand Response Businesses
Constellation Energy and demand side management specialist Comverge said last week they are combining their demand response businesses for C&I customers.
Coal Plants Threaten to Shut Earlier to Avoid MISO Capacity Penalties
Generators that planned to retire coal-fired units just ahead of the Environmental Protection Agency’s mercury rule extension deadline in April 2016 say they may have to accelerate retirements by a year to avoid incurring MISO capacity deficiency penalties.
Md. Advocate Wants Tougher Energy-Efficiency Targets
Maryland’s Office of People’s Counsel is recommending that regulators set tougher energy-efficiency targets for the state’s utilities, which it says are winding down their efforts.
Monitor: Cut Pay for Tier 1 Synchronized Reserves
Members agreed last week to consider cutting compensation for Tier 1 synchronized reserves, but PJM officials are likely to oppose a change they said could upset the balance of the RTO’s scarcity pricing scheme.
PJM Part of FERC, NERC Review of Grid Recovery Plans
PJM is one of nine Registered Entities that has agreed to take part in a review of grid recovery and restoration plans.
PJM Forgoing $10M in Settlement with DC Energy, Scylla
PJM will forgo $10.2 million in balancing operating reserve (BOR) charges resulting from transactions that two trading companies characterized as internal bilateral transactions (IBTs) under a settlement approved by the Federal Energy Regulatory Commission.
Exelon Selling Utah, Texas Plants to Private Equity Firm
Exelon, which last month announced it would spend $500 million to build two natural gas-fired generating stations in Texas, is selling two other gas plants in Texas and Utah.
Market Monitor Corrects Exclusion List on Talen Energy; Adds Exelon, Duke
Duke Energy and Exelon should be among the companies barred from acquiring any generation divested by PPL as part of its spinoff plan, the Independent Market Monitor told the Federal Energy Regulatory Commission.

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