ELR Citation: 52 ELR 20069
No(s). 19-1224 (D.C. Cir. Jun 17, 2022)

The D.C. Circuit granted in part and denied in part petitions to review FERC's order approving the Independent System Operator for New England's (ISO-NE's) tariff revisions that compensated power plants for maintaining up to three days' worth of fuel on-site to generate electricity during winter months. Utility and environmental groups argued FERC's approval imposed unjust and unreasonable, discriminatory, and preferential rates, in violation of the Federal Power Act. The court found that the revisions effectively addressed a pressing fuel security risk, did not unnecessarily duplicate other programs addressing fuel security in New England, and that the total costs were reasonable; but that FERC's approval of their inclusion of all eligible market participants—nuclear, coal, biomass, and hydroelectric—despite record evidence that they would not change their behavior in response to being compensated was arbitrary and capricious. It granted in part and denied in part the petitions and remanded to FERC for further proceedings.