Energy Legal Blog

On January 20, 2011, the Federal Energy Regulatory Commission (FERC) issued an order accepting 12 conditional long-term firm point-to-point transmission service agreements between PacifiCorp and Columbia Energy Partners (CEP).  This order, and these service agreements, concluded a two-year long dispute between PacifiCorp and CEP over the appropriate level and character of service to be provided by PacifiCorp.  The service agreements represent how transmission providers and customers can work collaboratively to produce meaningful conditional firm service under FERC Order No. 890.  Further, the involvement of FERC’s Dispute Resolution Service (DRS) in assisting the agreement reached by PacifiCorp and CEP highlights the usefulness of a perhaps overlooked service offered by FERC. (more…)

Public disclosure that FERC plans to launch an enforcement action will continue to take the form of a Preliminary Notice of violation from the Director of FERC’s Office of Enforcement, which will not issue until after the target has been (1) presented with a letter from the Enforcement Staff detailing its preliminary findings of a statutory or regulatory violation, (2) afforded a full opportunity to rebut the allegations put forth in the  preliminary findings, and (3) notified in advance that a public Notice will be issued.  Before the agency adopted this practice in a December 17, 2009 order, public disclosure typically did not occur unless and until FERC either approved a settlement between its Enforcement Staff and the target or issued an order directing the target to show cause why it should not be adjudicated to have committed the alleged violations.  In a January 24 order, FERC declined the requests that it revert to this earlier practice. (more…)

Exercising new authority Congress conferred on it in the Dodd Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank), in a January 13 rulemaking proposal the Commodity Futures Trading Commission (CFTC) proposes to impose limit on holdings of certain derivatives, including swaps linked to energy commodity prices.  To be considered, public comments on this proposal must be submitted no later than March 28.  (more…)