Daily Archives: March 19, 2009

FERC’s smart grid policy statement

Posted on by

Michael Giberson

FERC has posted it’s proposed smart grid policy statement and invited comments (comments due 45 days after the statement is published in the Federal Register).  FERC offers this summary:

This proposed policy statement and action plan provides guidance to inform the development of a smarter grid for the Nation’s electric transmission system focusing on the development of key standards to achieve interoperability of smart grid devices and systems. The Commission also proposes a rate policy for the interim period until interoperability standards are adopted. Smart grid investments that demonstrate system security and compliance with Commission-approved Reliability Standards, the ability to be upgraded, and other specified criteria will be eligible for timely rate recovery and other rate treatments. This rate policy will encourage development of smart grid systems.

FERC’s efforts are directed toward transmission issues, where it has uncontested jurisdiction (more or less).  Let us hope that we don’t end of with 50+ different state and local policy statements addressing local area wires infrastructure and retail power trading.

The archived webcast of today’s FERC meeting, which did focus on the smart grid policy statement, is now available, or you can download the 31-minute smart grid discussion in mp3 format – just long enough for the typical automobile commute.

Peculiar, Missouri and retroactive policymaking

Posted on by

Michael Giberson

Retroactive policymaking is all the rage in Washington, D.C., these days, with Congress discovering after the fact that policy made in haste a few months ago needs to be fixed, and now rushing to fix it.

A recent regulatory settlement in Missouri shows the state to be ahead of the game in retroactive policymaking.  A report from Platts has more detail, and much, much more detail is available in the Missouri Public Service Commission (PSC) order of March 18, but in brief the story is:

  • In 2005, Aquila began construction of a 315 MW peaking power plant near Peculiar, Missouri without either county or state PSC permits. Aquila said it believed then existing general permits from the PSC provided it authority to proceed.
  • Cass County and local residents sued.
  • The PSC retroactively awards Aquila a permit for the project.
  • A court overturned the PSC’s retroactive grant of the permit.
  • The Missouri legislature then granted the PSC authority to retroactively approve the project.
  • Cass County and Aquila settled their differences in January 2009.
  • This week the Missouri PSC accepted the settlement.

The episode has not been all hugs and smiles for the folks involved. See, for instance, this news story from the Kansas City Star describing a judge’s email (sent to “several hundred recipients” according to the story) blasting a state legislator for filing a bill last year to, in effect, override the court decisions directing Aquila to dismantle the plant.

Yes, Peculiar really is the name of the nearby town in Cass County, Missouri.