Regulatory Affairs news highlights: January 2025

 

Recent regulatory headlines we’re tracking include:

FERC issues NOPR to address risks related to inverter-based resources

The Federal Energy Regulatory Commission (FERC) issued a Notice of Proposed Rulemaking (NOPR) on Reliability Standards for Frequency and Voltage Protection Settings and Ride-Through for Inverter-Based Resources on Dec. 19, 2024. In the NOPR, FERC proposes to approve Reliability Standards PRC-024-4 and PRC-029-1.

The proposed standards address the risk of inverter-based resources (IBRs) tripping or entering momentary cessation in aggregate in response to variations in system voltage or frequency. Specifically, PRC-024-4 addresses frequency and voltage protection settings for synchronous generators, Type 1 and Type 2 wind resources, and synchronous condensers. PRC-029-1 establishes frequency and voltage ride-through performance requirements for generator owners of IBRs.

FERC is seeking comments on all aspects of the NOPR, which are due 60 days from the date of the NOPR’s publication in the Federal Register.

 

FERC releases annual report on demand response and advanced metering

FERC staff has released its annual report on demand response and advanced metering, which is required by Section 1252 of the Energy Policy Act of 2005. FERC defines demand response as “changes in electric usage by [customers] from their normal consumption patterns in response to changes in the price of electricity over time, or to incentive payments designed to induce lower electricity use at times of high wholesale market prices or when system reliability is jeopardized.” Advanced meters facilitate demand response programs because they can measure and record usage data at hourly intervals and provide that data to energy companies.

The report finds that from 2021 to 2022, the number of advanced meters across the U.S. increased by 7.3%, and that advanced meters make up 72% of all meters in the U.S. From 2022 to 2023, about 6.5% of peak demand could be met by demand response resources. The report also discusses state actions related to demand response and advanced metering.

 

DOE identifies three areas for additional transmission development to increase reliability and lower consumer costs

The Department of Energy (DOE)’s Grid Deployment Office released a list of three National Interest Electric Transmission Corridors (NIETC) that will move to Phase 3 of 4 of the DOE’s process. NIETCs are areas of the country where the DOE identifies that additional transmission development will likely increase national interests such as increased reliability and lower consumer costs. Notably, the Lake Erie-Canada Corridor, which includes parts of Lake Erie and Pennsylvania, will advance to Phase 3. During Phase 3, the DOE will continue to refine geographic boundaries and investigate and determine necessary environmental and military reviews. The DOE will host an informational webinar about the Lake Erie-Canada Corridor on Jan. 16 at 3 p.m. EST.