The Federal Energy Regulatory Commission (FERC) announced that it had completed its review of compliance filings for the Florida Reliability Coordinating Council (FRCC) and ColumbiaGrid under Order No. 1000. In both cases, FERC determined that the entities had partially fulfilled their requirements under the above order. Based on the decision, the groups are required to submit additional compliance filings within 120 days.
FERC determined that FRCC submission did not meet the regional cost allocation principles required under Order No. 1000 because it failed to fully account for benefits of addressing "economic and public policy-related transmission needs," and therefore does not satisfy the requirement that "costs must be allocated in a manner…at least roughly commensurate with estimated benefits."
In the second case, FERC determined that ColumbiaGrid fulfilled all the requirements except the stipulation that numerous parties enroll in the regional transmission planning process. The decision on ColumbiaGrid resulted in a harsh rebuke by Senate Energy and Natural Resources Committee Chairman Ron Wyden (D-OR), who criticized FERC for not taking into account the unique regional circumstances surrounding the presence of public entities. Wyden has threatened legislative action if FERC does not reverse its decision.
The above decisions shed additional light on how FERC considers compliance filings under Order No. 1000. Entities preparing similar filings should note the determinations of FERC in its report. Additionally, the response by Chairman Wyden, whose committee has jurisdiction over FERC, is notable because he has direct oversight of FERC.