Originally Posted on Troutman Sander’s Washington Energy Report

On June 5, 2017, Advanced Energy Economy (“Advanced”), a national trade association representing organizations within the energy efficiency, demand response, and other advanced energy industry sectors, filed a petition for a declaratory order with FERC.  Among other things, the petition requests that FERC assert exclusive jurisdiction over how Energy Efficiency Resources (“EERs”) can participate in markets operated by Regional Transmission Organizations and Independent System Operators (“RTOs/ISOs”).  In particular, Advanced highlights a recent proposal from PJM Interconnection, L.L.C. (“PJM”) to initiate a stakeholder process to ultimately grant state regulators the authority to bar, restrict, or otherwise condition EER participation in PJM’s capacity market.  The petition, filed while FERC still lacks a quorum to take action, came just days before the Kentucky Public Service Commission (“KYPSC”) issued an order restricting participation of EERs in PJM wholesale markets. Continue Reading AEE Requests Declaratory Rulings on Federal Preemption for Energy Efficiency Resources in FERC-Regulated Markets

By: Stuart Caplan, Brian Harms and Emily Prince

In a speech last month, Energy Secretary Rick Perry stated that the Department of Energy (“DOE”) may need to “intervene” in state renewable energy policies to protect grid security and reliability. Secretary Perry made the statement to energy industry stakeholders at the Bloomberg New Energy Finance Summit on April 25, 2017. In early April, Secretary Perry ordered a DOE study to determine the extent wholesale market structures, energy mandates, federal policy and tax subsidies are affecting long-term grid reliability. Secretary Perry suggested that the DOE was concerned by ongoing baseload generating facility retirements stimulated in part by pressure on utilities to meet renewable portfolio standard (“RPS”) benchmarks. During a question and answer session, Secretary Perry stated that increased reliance on intermittent renewable energy sources makes the grid unreliable, which ultimately creates a concern for national security. Continue Reading Trump Administration Considers Preemption of State Renewable Policies