[Federal Register Volume 82, Number 242 (Tuesday, December 19, 2017)]
[Proposed Rules]
[Pages 60134-60135]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-27187]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Part 35
[Docket No. RM18-1-000]
Grid Resiliency Pricing Rule
AGENCY: Federal Energy Regulatory Commission, Department of Energy.
ACTION: Notification of extension of time to take final action on the
proposed rule.
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SUMMARY: On October 10, 2017, the Department of Energy (the Department
or DOE) published a proposed Grid Resiliency Pricing Rule for final
action by the Federal Energy Regulatory Commission (Commission or
FERC). Secretary of Energy Rick Perry (the Secretary) directed FERC
either to publish an immediately-effective interim rule or to take
final action on the proposed rule within 60 days of publication,
thereby establishing a deadline of December 11, 2017. By letter dated
December 7, 2017, the Commission requested an extension of the proposed
rule's deadline. By letter dated December 8, 2017, the Secretary
granted the Commission's request. The Secretary's letter is set forth
in full below.
DATES: The Commission is granted an extension for final action on the
proposed rule published in the Federal Register on October 10, 2017 (82
FR 46940) by Wednesday, January 10, 2018.
FOR FURTHER INFORMATION CONTACT: Ronald (R.J.) Colwell, U.S. Department
of Energy, Office of the Assistant General Counsel for Electricity and
Fossil Energy (GC-76), Forrestal Building, Room 6D-033, 1000
Independence Avenue SW, Washington, DC 20585; (202) 586-9507; email
[email protected].
SUPPLEMENTARY INFORMATION: On October 10, 2017, pursuant to authority
in section 403 of the Department of Energy Organization Act, 42 U.S.C.
7173, the Department published a proposed Grid Resiliency Pricing Rule
for final action by the Commission. 82 FR 46940. The Secretary proposed
that the Commission exercise its authority under the Federal Power Act
(FPA) to establish just and reasonable rates for wholesale electricity
sales. Under the proposal, the Commission would impose rules on
Commission-approved independent system operators (ISOs) and regional
transmission organizations (RTOs) to ensure that certain reliability
and resilience attributes of electric generation resources are fully
valued. The Secretary directed the Commission to take final action on
this proposal within 60 days of publication of the proposed rule in the
Federal Register or, in the alternative, to issue the rule as an
interim final rule immediately, with provision for later modifications
after consideration of public comments. By letter dated December 7,
2017, the Commission requested an extension of time to take final
action on the proposed rule (the letter is available at https://www.ferc.gov/DOE-letter.pdf). By letter dated December 8, 2017, the
Secretary granted FERC's request, setting a new deadline of Wednesday,
January 10, 2018, for action by the Commission. In the letter, the
Secretary stated that the Commission is nevertheless authorized to act
at any time prior to this deadline and urged the Commission to act
expeditiously. The Secretary's letter is set forth, in full, below.
Issued in Washington, DC, on December 13, 2017.
Bernard L. McNamee,
Deputy General Counsel for Energy Policy, Office of the General
Counsel, U.S. Department of Energy.
December 8, 2017
The Honorable Kevin J. McIntyre, Chairman
Federal Energy Regulatory Commission
888 First Street, NE
Washington, DC 20426
Re: The Secretary of Energy's Granting of the Request for an
Extension of Time for the Commission to Take Final Action on the
Proposed Grid Reliability and Resiliency Pricing Rule, FERC Docket
No. RM18-1-000
Dear Chairman McIntyre:
On December 7, I received your request for an extension of time
(``Extension Request'') for the Federal Energy Regulatory Commission
(``Commission'') to take final action on the proposed Grid
Resiliency Pricing Rule in the Notice of Proposed Rulemaking
(``Notice'' or ``Proposal'') published in the Federal Register on
October 10, and referenced in the above-captioned FERC docket.
In the Notice and in my accompanying letter of September 28, I
made clear that there is a problem today and that urgent action is
required to reform the Commission's market rules. I stated that, in
light of serious threats to the nation's electricity grid, it is the
Commission's immediate responsibility to take action to ensure that
generation resources with on-site fuel supplies and the ability to
provide essential energy and ancillary reliability services
including voltage support, frequency services, operating reserves,
and reactive power are fully valued and, in particular, to exercise
its authority to develop new market rules that will achieve this
urgent objective. In the letter I further stated that failure to act
expeditiously would be unjust, unreasonable, and contrary to the
public interest. The voluminous comments filed in the record of this
proceeding provide substantial evidence of, and otherwise confirm,
the threat to the nation's electricity grid and the urgent need for
Commission action to reform market rules to preserve fuel-secure
generation resources.
Because of the urgency of this matter, the 60-day deadline
imposed in the Notice is reasonable within the meaning of Section
403 of the Department of Energy Organization Act and is otherwise
compliant with applicable law. The better course would be for the
Commission to adopt the Proposal within this reasonable deadline. If
the Commission fails to adopt the Proposal within the original
[[Page 60135]]
deadline for the reasons stated in the Extension Request, the
security of our nation's electric grid will continue to be at risk.
However, I understand that Section 403 assigns the Commission
the responsibility to take final action on the Proposal within the
reasonable time period set forth by me and it is solely within my
authority under Section 403 to grant an extension of time for final
action. On the assumption that the Commission cannot act on the
proposal within the 60-day deadline, I hereby grant the request for
an extension of time for the Commission to deliberate and take final
action on the Grid Resiliency Pricing Rule for an additional 30
days.\1\ The new deadline is Wednesday, January 10, 2018. The
Commission is nevertheless authorized to act at any time prior to
this deadline and I urge the Commission to act expeditiously. During
this additional period, the Department will continue to examine all
options within my authority under the Department of Energy
Organization Act, the Federal Power Act, and any other authorities
to take remedial action as necessary to ensure the security of the
nation's electric grid.
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\1\ This extension is granted pursuant to my authority under
section 403 of the Department of Energy Organization Act, among
other powers and authorities granted to me by law.
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I continue to believe that urgent action must be taken to ensure
the resilience and security of the electric grid, which is so
vitally important to the economic and national security of the
United States. I look forward to the Commission taking final action
in this matter for the benefit of the American people.
Sincerely,
Rick Perry
[FR Doc. 2017-27187 Filed 12-18-17; 8:45 am]
BILLING CODE 6450-01-P