CFTC Energy and Environmental Markets Advisory Committee Issues Report on 2015 Review and Consideration of the CFTC's Position Limits Rule

On February 25, 2016, the U.S. Commodity Futures Trading Commission's ("CFTC") Energy and Environmental Markets Advisory Committee ("EEMAC") released its Report on EEMAC's 2015 Review and Consideration of the CFTC's Proposed Rule on Position Limits ("Report"). The Report summarizes the EEMAC's formal recommendations to the CFTC on the CFTC's proposed rule on position limits. The Report included observations that (1) there is insufficient evidence that the CFTC's proposed rule is sufficiently "necessary" to satisfy the finding of necessity mandated by the Commodity Exchange Act ("CEA"); (2) the proposed rule would reduce liquidity in physical and derivative power and gas markets, adversely affecting the ability of end users to hedge; and (3) implementing the proposed rule would create practical challenges. [Read more →]

NERC Issues First Annual Report on Compliance Program

On February 18, 2016, the North American Electric Reliability Corporation ("NERC") filed with the Commission its first annual report (the "Report") on NERC's Compliance Monitoring and Enforcement Program ("CMEP"). NERC submitted the Report in compliance with a directive from the Commission's February 19, 2015 Order approving NERC's implementation of the Reliability Assurance Initiative ("RAI") (see February 24, 2015 edition of the  WER). [Read more →]

FERC Issues NGA Section 7(c) Certificate to Rockies Express for the East-to-West Expansion Project

On February 25, 2016, FERC granted Rockies Express Pipeline LLC's ("Rockies Express") request for a certificate to construct and operate natural gas compression and ancillary facilities in Ohio and Indiana ("East-to-West Expansion Project") pursuant to section 7(c) of the Natural Gas Act ("NGA"). Rockies Express stated that the proposed East-to-West Expansion Project will enable it to provide an additional 800,000 dekatherms per day ("Dth/d") of east-to-west transportation service within Zone 3 of the Rockies Express system. [Read more →]

FERC Conditionally Accepts NYISO's Proposal to Exclude from Generator Reference Levels and Cost Recovery Costs and Penalties Associated with Generators' Unauthorized Takes Of Natural Gas from Interstate Natural Gas Pipelines

On February 18, 2016, FERC issued an order conditionally accepting tariff revisions from the New York Independent System Operator, Inc. ("NYISO"). According to the NYISO, the proposed tariff revisions would improve coordination between the electric and natural gas system by giving NYISO authority to prohibit generators from including unauthorized natural gas costs and penalties in reference levels and to reject after the fact requests to recover costs associated with unauthorized natural gas use. [Read more →]

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.