Providing Focused Attention and Unparalleled Value To Every Client

Transcription

1 0 Providing Focused Attention and Unparalleled Value To Every Client

2 Omaha Public Power District Board of Directors OPPD and the Federal Energy Regulatory Commission January 2018 Presented by Stephen M. Bruckner

3 Overview What is the Federal Energy Regulatory Commission ("FERC") and what does it regulate? How does FERC impact OPPD? What is the relationship between FERC and the Southwest Power Pool ("SPP")? What is the relationship between FERC and the North American Electric Reliability Corporation ("NERC")? Recent FERC proceedings involving OPPD. 2

4 What is FERC? FERC is an independent federal agency Five Commissioners, appointed by the President, confirmed by Senate. No more than 3 Commissioners from one political party. Each Commissioner has equal vote. Current Commissioners Kevin J. McIntyre Nov (R) (Chairman) Cheryl A. LaFleur 2010 (D) Neil Chatterjee Aug (R) Robert F. Powleson Aug (R) Richard Glick Nov (D) 3

5 FERC regulates: Electric transmission and wholesale electric rates and services Federal Power Act Hydroelectric dam licensing and safety Federal Power Act What does FERC regulate? Natural gas pipeline transportation rates and services Natural Gas Act Oil pipeline transportation rates and services Interstate Commerce Act Image Source: 4

6 FERC Regulation of Electric Service FERC primarily regulates "public utilities" (i.e. investor-owned utilities) SPP is a "public utility" Public power entities like OPPD are referred to as "non-public" utilities or nonjurisdictional entities FERC cannot regulate OPPD's rates and terms of service Exclusive jurisdiction under over "transmission of electric energy in interstate commerce" and "sale of electric energy at wholesale in interstate commerce" 5

7 How Does FERC Regulate Under the Federal Power Act ("FPA")? FPA Section 205: Public utilities must obtain approval of rates, terms, and conditions of service. Interested parties may intervene and/or protest with written filing FERC may find filing deficient, accept the filing and rates, suspend effectiveness of rates, set for hearing FPA Section 206: Complaint by another party or by FERC, seeking ruling that a rate, term, or condition violates legal standard Legal standard: Rates and terms must be "just and reasonable" and cannot be "unduly discriminatory or preferential" FERC also regulates through use of rulemaking proceedings 6

8 Key FERC Orders Order No. 888 and 888-A All public utilities that own, control or operate jurisdictional transmission facilities are required to have open access transmission tariffs Goal was to eliminate undue discrimination/preference Non-jurisdictional utilities may have reciprocity open access transmission tariffs Reciprocity provides a so-called safe harbor, ensuring that the non-public utility is entitled to transmission service from public utilities Order No. 890 and 890-A Improve open access transmission Establish a coordinated, open and transparent transmission planning process 7

9 FERC Authority and NERC 2005: Congress gave FERC authority over grid reliability FERC has certified NERC to develop and enforce reliability standards, which are approved by FERC NERC is divided into regions; OPPD is under authority of the Midwest Reliability Organization ("MRO") MRO can levy penalties, subject to FERC review FERC has independent authority to pursue compliance action 8

10 SPP and FERC SPP is a "public utility" and is subject to FERC jurisdiction OPPD, as a member of SPP, closely monitors FERC proceedings OPPD's Membership Agreement and addition to SPP Tariff were approved by FERC SPP files OPPD's transmission rate template on behalf of OPPD and other members FERC Southwest Power Pool ("SPP") is a Public Utility (under FERC Jurisdiction) OPPD (Member of SPP) 9

11 Recent Proceedings FERC docket: Refund obligation for public power entities Exemption from PURPA 1 "Must Purchase" Requirement Challenge to MISO 2 unauthorized use of SPP system 1 Public Utilities Regulatory Policy Act 2 Midwest Independent System Operator 10

12 11 Providing Focused Attention and Unparalleled Value To Every Client