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Electric utilities

Federal Energy Regulatory Commission Upholds Decision on California Energy Market Following Rehearing Request

Strategic Insights

— 2 min read

The Commission has rejected a request for rehearing by Californians for Renewable Energy (CARE) regarding the denial of their complaint against several California energy companies. The complaint alleged that the California Independent System Operator (CAISO) and the California Public Utilities Commission (CPUC) engaged in discriminatory and unworkable practices during the August 2020 heat-related blackout events. The Commission initially denied the complaint and the rehearing request, citing that CARE did not meet their burden to show that the CAISO markets were unjust, unreasonable, or unduly discriminatory or preferential.

Key Takeaways:

  • The Federal Energy Regulatory Commission (FERC) has denied a rehearing request by Californians for Renewable Energy (CARE) regarding the denial of their complaint against CAISO and the CPUC.
  • CARE alleged that the Commission's decision to deny their complaint was biased and prejudged their argument, citing statements made by Commissioners during a December 2020 meeting.
  • FERC disagreed with CARE's assertion, stating that their decision was not influenced by the previous meeting and that CARE's allegations in the Complaint Order proceeding are distinct from the concerns expressed in the Draft Show Cause Order proceeding.
  • The Commission also chose not to exercise its discretion to initiate an enforcement action against the CPUC under PURPA and/or section 206 of the FPA.
  • FERC determined that the California Utilities are not subject to the Commission's jurisdiction under section 210(h) of PURPA, and therefore, dismissed the PURPA allegations against them.
  • The Commission continued to uphold their initial decision, stating that CARE did not meet their burden to show that the CAISO markets were unjust, unreasonable, or unduly discriminatory or preferential.

Statistics:

  • The August 2020 heat-related blackout events affected customers in CAISO.
  • 964 FERC P 61,271 (2021) details the investigation into the 2020 heat event, which found that CAISO's tariff remained just and reasonable.
  • In the Draft Show Cause Order proceeding, a majority of the participating Commissioners voted not to approve the draft order.
  • The Draft Show Cause Order was presented for voting at the Commission's December 17, 2020 Open Meeting but was not approved by the Commission.

Sources:

  • 16 U.S.C. § 825l(a) ("Until the record in a proceeding shall have been filed in a court of appeals, as provided in subsection (b), the Commission may at any time, upon reasonable notice and in such manner as it shall deem proper, modify or set aside, in whole or in part, any finding or order made or issued by it under the provisions of this chapter.")
  • 16 U.S.C. § 824e (Section 206 of the Federal Power Act)
  • CAlifornians for Renewable Energy v. Cal. Indep. Sys. Operator Corp., 174 FERC P 61,204 (2021) (Complaint Order)
  • Staff Presentation on Preliminary Observations on the August 2020 California Heat Storm (AD21-3-000) | Federal Energy Regulatory Commission (ferc.gov)

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