The Federal Energy Regulatory Commission (FERC) recently announced a series of across-the-board regulatory actions designed to bring more economic and reliable energy supplies to the stressed California and Western energy markets. Effective immediately, FERC is streamlining regulatory procedures for wholesale electric power sales, expediting the certification of natural gas pipeline projects into California and the West, including the reallocation of staff resources to more quickly address pending pipeline applications, and urging all licensees to review their FERC-licensed hydroelectric projects in order to assess the potential for increased generating capacity.
Among FERC’s actions are:
- Requiring the California ISO and transmission owners within the Western Systems Coordinating Council (WSCC) to prepare a list of grid enhancements that can be completed in the short term.
- Waiver of prior notice requirements for any on-site power generators located at business sites that sell at wholesale to entities located in the 11-state WSCC region.
- To encourage demand-side reduction, retail and wholesale loads that reduce their consumption would be allowed to resell their load reduction at wholesale. FERC is granting blanket market-based rates for these sales.
- Extending and broadening the temporary waivers, through Dec. 31, 2001, for operating and efficiency standards for qualifying facilities in order to increase the availability of needed capacity. In addition, all additional output from cogeneration facilities would be sold through negotiated bilateral agreements.
FERC is seeking comment on other measures that could be taken to help improve the supply and demand balance in California and the Western markets. Comments should be submitted by March 30, 2001 and be addressed to the Office of the Secretary, Federal Energy Regulatory Commission, 888 First Street, NE, Washington, DC 20426. Participants are encouraged to submit concise filings and submit an original and 14 copies, referencing Docket No. EL01-47-001.
For more information, contact FERC.
