Rick Perry Kevin J. McIntyre
 FERC Chariman, Kevin J. McIntyre      DOE Secretary, Rick Perry

On December 7, 2017, the new Chairman of the Federal Energy Regulatory Commission (“FERC”), Kevin J. McIntyre, submitted a letter to Department of Energy (“DOE”) Secretary Rick Perry requesting a 30-day extension for final FERC action on a proposed rule regarding new valuation measures for reliability and resiliency attributes provided by electric generation resources.  On December 8, 2017, Secretary Perry granted FERC a 30-day extension to take final action on the proposed rule.  The new deadline by which FERC must take its final action is January 10, 2018. 

The proposed “Grid Resiliency Pricing Rule,” which was docketed at FERC pursuant to a request by Secretary Perry, aims to more accurately price baseload generation resources that help maintain the reliability and resiliency of the nation’s electric grid.   The Rule would require the regional transmission organizations (“RTOs”) and independent system operators (“ISOs”) to establish new rates to compensate generators that support reliability and resiliency by providing, among other things, a 90-day supply of on-site fuel assurance.  Compensable costs would include operating and fuel expenses, costs of capital and debt, and a fair return on equity and investment.  The RTOs/ISOs would have to file tariff revisions within 30 days of publication of a final rule.  For more information on the proposed rule, please see here.  

In granting the extension, Secretary Perry noted that the “voluminous comments filed in the record of this proceeding” was evidence on the need for urgent FERC action.  Chairman McIntyre also cited the large number of comments received, and noted that they would have to be given due deliberation by a Commission that was only recently fully empaneled.  Indeed, Chairman McIntyre was only recently confirmed to his position and was sworn in as Chairman of the Commission the same day that he submitted to DOE his extension request.  Chairman McIntyre and Commissioner Richard Glick are the two newest members of the Commission, with Commissioner Glick having been sworn in on November 29, 2017. 

To view Chairman McIntyre’s extension request, please see here.

To view Secretary Perry’s letter granting extension, please see here.

For more information, please contact Thomas Rudebusch, Michael Postar, Sean Neal or Jason Gray.