Offshore Wind Projects Receive Boost from Massachusetts and Biden Administration

LCG, March 31, 2021--The Governor of Massachusetts signed legislation last Friday that authorizes the state to direct utilities to purchase an additional 2,400 MW of offshore wind energy by 2027.

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NV Energy's Greenlink Nevada Transmission Project Approved by PUCN

LCG, March 25, 2021--The Public Utilities Commission of Nevada (PUCN) on Monday approved proceeding with NV Energy's Greenlink Nevada transmission and renewable energy initiative. NV Energy's planned investment in Greenlink is over $2.5 billion.

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Industry News

FERC Clarifies Market Power Screening Tests and Denies Rehearing

LCG, July 9, 2004--The Federal Energy Regulatory Commission (FERC) issued its Order on Rehearing yesterday that clarifies the methodology to assess generation market power and denied a rehearing. AEP, Entergy, and Southern Company, were directed to file within 30 days their revised generation market power analyses - incorporating the new tests.

The two screening tests, previously set forth in the FERC's order issued on April 14, 2004, analyze a market participant's total amount of uncommitted capacity available for wholesale sales in a market. The first screen is the pivotal supplier analysis, which examines a participant's generation market power during the peak hour of the year, and is based on a control areas annual peak demand. The hours leading up to that point are the most likely time that a participant will be a pivotal supplier.

The second screen is the wholesale market share analysis that examines the market share of a participant in all seasons. Both screens consider native load obligations, operating reserve requirements and other commitments of the participant's. If applicants pass both indicative screens, it is presumed that generation market power does not exist.

If the participant fails either screen, it is presumed that the generation market power exists, and the participant can then rebut the presumption with additional analyses. Alternatively, a participant may accept the presumption of market power and go directly to mitigation or inform the FERC it will adopt the default cost-base rates or propose other cost-base rates. In the Order on Rehearing issued yesterday, the FERC states, "Market-based rate authority is not a right. The Commission may grant such authority under the FPA only to applicants who demonstrably lack market power."

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