FERC issues July meeting orders on grid reliability, transmission rates and gas storage

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FERC July meeting orders

Highlights

FERC directs North American Electric Reliability Corporation to develop new Reliability Standards on computational load integration and update related Rules of Procedure, with filings due by Dec. 31, 2026.
Basin Electric Power Cooperative gains transmission rate incentives, including full cost recovery on project abandonment and authorization for a 50% debt/50% equity capital structure.
Leaf River Energy Center receives approval to expand the New Home Salt Dome Storage Facility, increasing certificated working gas capacity by 19.18 Bcf in Mississippi.

Commission actions span reliability and tariff oversight

As summarized by Federal Energy Regulatory Commission, one of the meeting's main actions directs the North American Electric Reliability Corporation to develop new or revised Reliability Standards addressing risks tied to integrating computational loads into the Bulk-Power System. The commission also directs NERC to revise its Rules of Procedure, including registry criteria for computational load entities, with both filings due by Dec. 31, 2026.

The commission also accepts, in part, compliance filings from Southwest Power Pool in response to a September 18, 2025 order on its proposed refund plan tied to Attachment Z2 credit payment obligations, and from Southern California Edison and Pacific Gas and Electric on Wholesale Distribution Tariff revisions required under Orders No. 2023 and 2023-A. San Diego Gas & Electric's related tariff compliance filing is accepted, while Southern California Edison and Pacific Gas and Electric are directed to submit further compliance filings.

In additional transmission-related matters, the commission establishes hearing and settlement judge procedures for a Public Citizen complaint over spending on the Roseland-to-Pleasant Valley transmission line rebuild. It also denies a complaint by North Carolina Electric Membership Corp. against Duke Energy Progress over cost allocation for local transmission projects in Duke's Joint Open Access Transmission Tariff.

FERC rejects settlements and rate schedules filed by Eagle Creek Reusens Hydro and Great Falls Hydroelectric, Lakehurst Solar, and Oxbow Creek Energy concerning Reactive Supply and Voltage Control service under the PJM Interconnection tariff. Those applicants are directed to submit compliance filings within 30 days of their orders and make refunds within 45 days.

Separately, the commission says there is no basis for further action on cost justification filings involving Freeport-McMoRan Copper & Gold Energy Services, ConocoPhillips, NextEra Energy Marketing and BP Energy. Those cases concern spot market energy sales above the Western Electricity Coordinating Council soft price cap of $1,000 per megawatt-hour and were reviewed under the Mobile-Sierra analysis referenced in Shell Energy N.A. (U.S.), L.P. v. FERC.

Approvals affect power and gas infrastructure

The meeting also produces several asset-specific approvals with implications for utility investment and regional energy supply. Basin Electric Power Cooperative receives transmission rate incentives for two projects, including recovery of 100% of prudently incurred development and construction costs if the projects are abandoned or canceled for reasons beyond its control, and authorization to use a hypothetical capital structure of 50% debt and 50% equity for its investment.

American Municipal Power's formal challenge and complaint over net operating loss adjustments in the 2025 formula rate annual updates for the AEP East Operating Companies and AEP East Transmission Companies is rejected. The decision leaves those contested tax-related adjustments in place for the formula rate update at issue.

On generation and storage infrastructure, Appalachian Power receives a new 50-year license to continue operating and maintaining the two-development Byllesby-Buck Project on Virginia's New River in Carroll County. The licensed project capacity is 29.8 megawatts.

Leaf River Energy Center also receives a certificate to construct, modify and operate facilities at its New Home Salt Dome Storage Facility in Mississippi's Smith, Jasper and Clarke counties. The project increases the facility's certificated working gas capacity by 19.18 Bcf.

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