Notwithstanding the pandemic and everything that it affected, 2020 was an active year for TAPS, including the following:

Leadership Change

John Twitty, TAPS Executive Director for nine years, accepted a new position as the President and CEO of the Missouri Public Utility Alliance in July 2020.  After a search for his replacement, Terry Huval assumed the role of TAPS Executive Director in September, 2020.  Huval is a registered Professional Engineer and has previously served as Chair of the Louisiana Professional Engineering and Land Surveying Board.  He served as Director of Utilities for Lafayette Utilities System in Lafayette, Louisiana for 24 years before retiring in 2018.  In addition to leading the utility, he was the APPA Board Chair in 2007-2008.

Legislation

In 2020, the House and Senate both spent considerable time working towards the passage of a comprehensive energy bill.  The work culminated in major energy provisions being included in the final legislative package in December of 2020.

TAPS engaged with the committees with jurisdiction over energy policy and with other key energy policy leaders to reiterate longstanding policy positions.  Notably, TAPS expressed concern to House and Senate energy policy leaders on a number of measures included in HR 4447, the House energy package passed in September of 2020.  TAPS also substantively engaged in provisions included in the House Energy and Commerce Committee draft CLEAN Future Act on issues that relate to the Federal Power Act.

TAPS continued to reiterate the need for Congress to assure that load-serving entities have a seat at the table to ensure their reasonable needs are planned for in the transmission planning process.  The lack of transparency in the transmission planning process is a problem in too many parts of the country where planning processes occur without meaningful stakeholder input.  As transmission planning for our changing resource mix takes center-stage, this deficiency must be addressed.

Another important step advocated for was more encouragement of joint transmission ownership arrangements.  Under such arrangements, load-serving entities embedded in the transmission system have the opportunity to invest in their load-ratio share of the transmission grid; they have a seat at the “grown up” table in the planning process, so they can play an integral role in ensuring their load is being properly served with necessary infrastructure.  Non-profit, public power load-serving entities also have no interest in “gold-plating” the transmission system, so including them in the transmission planning process helps to ensure that the grid is robust and reliable, without imposing unnecessary costs.

TAPS also engaged policy makers on the Hill in the discussion regarding incentive rates for transmission service.  TAPS membership has observed that above-cost rate incentives do not advance the objective of planning for a grid right-sized to meet the reasonable needs of load-serving entities.  TAPS is concerned that transmission has become a magnet for investments that are neither the most efficient nor cost effective solutions.  The potential for guaranteed, incentive-elevated returns on equity on transmission facilities that are low-risk investments, with full cost recovery ensured by formula rates, will encourage over-investment.

In addition to TAPS’ consultant’s regular communications with legislators and staff, the TAPS Government Affairs Committee conducted virtual visits with Hill staff on several occasions in 2020 to advocate in support of these positions.

NERC/NAESB

As the FERC-certified Electric Reliability Organization (“ERO”), NERC is authorized to establish and enforce mandatory reliability standards, subject to FERC review.  FERC also reviews NAESB standards and incorporates them into its regulations by reference.  TAPS works to ensure representation at both NERC and NAESB, with Bill Gallagher mobilizing and coordinating TAPS efforts to monitor and participate in activities at both organizations to protect the interests of TDUs.  Bill Gallagher has served as chair of the NERC Member Representatives Committee (“MRC”) and continues to serve as a member, and co-chairs the ERO Business Plan and Budget Group.  He also serves on the NAESB Wholesale Electric Quadrant Executive Committee, the NAESB Board of Directors, the NAESB Critical Infrastructure Committee, and the NAESB Special Board Committee on Gas/Electric Interdependency.  Chris Norton (AMP) also serves on the NAESB Wholesale Electric Quadrant Executive Committee.  Additionally, Bill Gallagher and former TAPS Executive Director John Twitty (also a former chair of the MRC) held the Transmission-Dependent Utility seats on the Member Representatives Committee in 2020; Terry Huval was elected to succeed John Twitty in a December vote.  Carol Chinn (FMPA), former MRC chair, holds one of the state/muni MRC seats, and Roy Jones (ElectriCities) holds the other.  In September, Roy Jones was elected Vice Chair of the MRC.  (Both Terry and Roy were seated at the February 2021 MRC meeting).  Carol Chinn is also a member of the NERC Reliability Issues Steering Committee.  Scott Tomashefsky (NCPA) serves as vice-chair of the Compliance and Certification Committee.  TAPS members have a presence on each of the NERC standing committees and on significant drafting teams.

TAPS has also made its voice heard on reliability issues through submissions to FERC in NERC and NAESB-related proceedings, as well as submission of comments to NERC.  TAPS attempts to maximize its impact by filing separate TAPS comments that reflect the distinct viewpoint of TAPS members, both as users highly dependent on the bulk electric system (“BES”) facilities owned by others and as entities subject to NERC’s mandatory reliability standards for our own BES facilities, or where appropriate, submitting joint comments with all or portions of the rest of the industry to emphasize the widespread support for a position.  Insiders have told us that seeing TAPS and EEI on the same submission to FERC sends a strong message.  While a number of these efforts are still playing out, there is no doubt that in 2020 TAPS played an important role in the ever-evolving relationship between FERC and NERC.

TAPS 2020 NERC and NAESB-related activities

  • Supply Chain Risk Management Reliability Standard (RM17-13)
    • December 9, 2019 NERC staff issues a report analyzing the responses to the August 2019 Supply Chain Risk Management Data Request, and recommends the modification of the Supply Chain Standards to include low impact BES Cyber Systems with remote electronic access connectivity.
    • January 22, 2020 State/Municipal and TDU Sectors provide input that, among other things, opposes NERC staff’s proposal to expand Supply Chain Standards to low impact BES Cyber Systems with remote electronic access connectivity.
    • February 6, 2020 NERC Board issues resolution accepting NERC staff’s recommendation.
    • April 6, 2020 NERC files a motion to defer the implementation of various Reliability Standards, including CIP-013-1, to which various parties filed comments in support and in protest.
    • April 17, 2020 FERC issues order granting, among others, a 3-month deferral of implementation of CIP-013-1.
    • July 31, 2020 FERC and NERC issue a Joint Staff White Paper on Supply Chain Vendor Identification, intended as a technical guide for identifying network interface controllers (“NICs”) from vendors with known security threats.
  • Complaint of Michael Mabee Related to Critical Infrastructure Reliability Standard (EL20-21)
    • January 29, 2020 (supplemented February 19, 2020) Michael Mabee submits complaint alleging that CIP-014-2 is inadequate as written and inadequately enforced.
    • March 10, 2020 TAPS intervenes and joins APPA in protesting complaint.
    • June 9, 2020 FERC denies complaint.
  • Potential Enhancements to the Critical Infrastructure Protection Reliability Standards (RM20-12)
    • June 18, 2020 FERC issues Notice of Inquiry seeking comments on potential changes to the current CIP standards.
    • August 24, 2020 TAPS submits comments urging FERC to avoid being unnecessarily prescriptive in its response to any perceived shortcomings in the CIP standards, particularly with respect to Low Impact cyber systems.
  • Standards Efficiency Review (RM19-16, RM19-17, RM14-7)
    • June 7, 2019 NERC submits the proposed retirements and partial retirements proposed under Phase 1 to FERC in Docket Nos. RM19-16, RM19-17, and RM14-7.
    • John Allen (City Utilities of Springfield, MO) is chair of the Phase 2 Working Team and a member of the CIP team.
    • January 23, 2020 FERC issues NOPR proposing to accept all but three of the Phase 1 proposed retirements.
    • May 1, 2020 TAPS joins APPA, EEI, LPPC, and NRECA in submitting comments supporting the January 23 NOPR’s proposal to accept most Phase 1 retirements, and supporting NERC’s response to the NOPR.
    • May 14, 2020 In response to FERC NOPR, and following Board consideration, NERC withdraws proposed retirement of VAR-001-6.
    • May 22, 2020 TAPS submits comments to NERC supporting SER Phase 2 draft data exchange Standards Authorization Request (“SAR”).
    • September 17, 2020 FERC issues Order No. 873, deferring action on MOD A retirements pending NAESB action, but approving almost all remaining retirements.
  • Proposed Revisions to the NERC Rules of Procedure (RR19-7)
    • January 23, 2020 FERC issues order accepting NERC’s July 22, 2019 Five-Year Performance Assessment and directing compliance filings, including changes to NERC’s Sanction Guidelines.
    • March 12, 2020 NERC proposes significant changes to its Organization Registration and Certification Program (“ORCP”), including to the reforms instituted as part of the Risk-Based Registration Initiative in 2014-2015.
    • April 27, 2020 TAPS submits comments to NERC opposing proposed revisions, and in the alternative, suggesting changes to preserve the intent of the RBR Initiative.
    • May 20, 2020 NERC posts proposed changes to Sanction Guidelines for stakeholder comment.
    • June 8, 2020 NERC posts revised versions of proposed ORCP changes for stakeholder comment, addressing some but not all of TAPS’ concerns, and introducing new problems.
    • July 10, 2020 TAPS submits comments to NERC supporting the increased transparency NERC proposed in response to the January 23 Order, but raising several concerns.
    • July 13, 2020 TAPS submits comments on revised proposed ORCP changes to NERC.
    • In response to TAPS comments, NERC revises proposed changes to address TAPS’ most significant concerns before submitting the proposed changes to the Board for approval.
    • August 20, 2020 NERC Board approves ORCP and Sanction Guidelines changes.
    • September 28, 2020 NERC files proposed ORCP and Sanction Guidelines changes at FERC for approval.
    • November 2, 2020 NERC posts proposed changes to Sections 400, 600, 900, and 1500, and Appendices 2 and 4C, of the NERC Rules of Procedure (Compliance Monitoring and Enforcement Program (“CMEP”) and Personnel Certification and Training and Education) for stakeholder comment.
    • December 18, 2020 TAPS submits comments supporting some proposed changes to CMEP (including NERC’s proposed adoption of a TAPS-supported Standards Efficiency Review proposal regarding evidence retention), but opposing others.
  • Modifications to MOD-032-1 (NERC Project No. 2020-01)
    • March 24, 2020 NERC System Planning Impacts of Distributed Energy Resources Working Group (“SPIDERWG”) submits SAR proposing effort to revise MOD-032-1 to add a specific reference to DER data.
    • April 24, 2020 TAPS submits comments opposing SAR as unnecessary.
    • December 9, 2020 (with formal explanation dated December 17, 2020) NERC Standards Committee rejects SAR, citing insufficient stakeholder support.
  • Cold Weather (NERC Project No. 2019-06)
    • February 19, 2020 In response to primarily negative industry comments on October 2019 SAR proposing development of new or revised standard to address cold weather preparedness and communication requirements between functional entities, NERC SAR Drafting Team posts revised SAR for comment.
    • March 19, 2020 TAPS submits comments opposing SAR as unnecessary.
    • April 22, 2020 NERC SAR Drafting Team posts revised SAR for comment.
    • May 21, 2020 TAPS submits comments opposing SAR as unnecessary.
    • Despite continued stakeholder opposition, SAR proceeds to standards drafting phase. With TAPS support, Jill Loewer (Utility Services) is added to the drafting team.
  • 2021-2023 Reliability Standards Development Plan
    • August 11, 2020 NERC issues draft 2021-2023 Reliability Standards Development Plan (“RSDP”).
    • September 9, 2020 TAPS submits comments supporting comments of City Utilities of Springfield, which advocated elevating the priority of SER Phase 2, and pausing development of any other new projects not associated with a FERC order.
    • November 3, 2020 NERC issues final RSDP (approved by the NERC Board of Trustees on November 5), adding a brief discussion of the ongoing SER efforts, and adding two new medium priority standards development projects.
  • State/Municipal and TDU Sector Policy Input to NERC Board of Trustees
    • The NERC MRC members from the State/Municipal and TDU Sectors (“SM-TDUs”) submit joint policy input to the Board of Trustees in response to the Board’s quarterly request for input. The responses are generally coordinated by TAPS, APPA, and LPPC.
      • January 22, 2020 SM-TDUs provide input regarding the collaborative ERO model, the Electromagnetic Pulse Task Force Report, and the NERC Supply Chain Risk Assessment.
      • May 6, 2020 SM-TDUs provide input focusing on Align Tool, Secure Evidence Locker System, and COVID-related reliability standard implementation deferrals.
      • August 5, 2020 SM-TDUs provide input regarding E-ISAC strategic plan and budget, and recent revisions to NERC’s bylaws.
      • October 21, 2020 SM-TDUs provide input regarding NERC’s Risk Framework white paper, as well as three priorities over the next three years.

TAPS 2020 FERC (Non-Reliability) Efforts

  • Electric Transmission Incentives Policy Under Section 219 of the Federal Power Act (RM20-10)
    • March 20, 2020 FERC issues NOPR (RM20-10) proposing to move to a new regimen of plentiful benefits-based ROE incentives.
    • July 1, 2020 TAPS files comments opposing most aspects of the NOPR, and urging modifications.
  • Inquiry Regarding FERC’s Policy for Determining Return on Equity (PL19-4, EL14-12, EL15-45)
    • March 21, 2019 FERC issues Notice of Inquiry into how it should determine returns on equity allowed in regulated electric and pipeline rates. TAPS, with APPA and others, filed initial and reply comments supported by expert affidavits, followed by a letter highlighting the substantial increase in transmission costs borne by consumers. FERC has not acted in the generic PL19-4 docket, but issued an order (Opinion 569) establishing a new methodology for calculating ROEs for the MISO Transmission Owners (Docket Nos. EL14-12 and EL15-45), which addressed most of the issues that were the subject of the NOI.
    • January 7, 2020 TAPS joins APPA in submitting a motion to intervene out-of-time and motion to lodge their PL19-4 comments in Docket Nos. EL14-12 and EL15-45, asking that FERC accept both only if it grants other pending motions to intervene out-of-time.
    • May 21, 2020 FERC issues Opinion 569-A, granting rehearing in part of Opinion 569.
    • June 24, 2020 EEI and WIRES file a Motion for Expedited Action in PL19-4 asking FERC not to apply the Opinion 569 methodology from Docket Nos. EL14-12 and EL15-45 in future proceedings for other utilities.
    • July 9, 2020 TAPS and APPA submit an answer opposing the EEI/WIRES motion.
    • Multiple petitions for review of Opinion 569 filed beginning June 1, now consolidated under No. 16-1325 at the D.C. Circuit.
    • November 19, 2020 FERC issues Opinion 569-B, denying rehearing of Opinion 569-A.
  • Technical Conference Regarding Managing Transmission Line Ratings (AD19-15, RM20-16)
    • September 10-11, 2019 FERC holds technical conference.
    • November 1, 2019 TAPS submits post-technical conference comments in response to October 2, 2019 Notice inviting comments.
    • November 19, 2020 FERC issues NOPR reflecting TAPS post-technical conference comments.
  • Grid-Enhancing Technologies (AD19-19)
    • September 9 and October 11, 2019 FERC notices a staff-led workshop.
    • November 5-6, 2019 staff-led workshop; Steve Leovy (WPPI) participates as panelist.
    • February 14, 2020 TAPS submits post-workshop comments.
  • Qualifying Facility Rates and Requirements—PURPA Reform (RM19-15, AD16-16)
    • September 19, 2019 FERC issues NOPR proposing significant changes to FERC’s regulations implementing the Public Utility Regulatory Policies Act of 1978 (“PURPA”).
    • December 3, 2019 TAPS submits supportive comments.
    • July 16, 2020 FERC issues Order No. 872, largely adopting the positions urged by TAPS.
    • September 17, 2020 FERC denies rehearing by operation of law and provides for further consideration.
    • November 19, 2020 FERC issues Order No. 872-A, denying rehearing but granting minor clarifications.
    • November 20, 2020, petition for review filed at the Ninth Circuit, No. 20-73375; consolidated with an earlier filed petition in Ninth Circuit No. 20-72788 and currently in abeyance.
  • Storage – Electric Storage Utilization, and Participation of Storage and Distributed Energy Resource Aggregation in Organized Markets (AD16-25, RM16-23, PL17-2, D.C. Cir. Case Nos. 19-1142 and 19-1147)
    • July 15, 2019 APPA, NRECA, EEI, and AMP file a separate petition for review of FERC’s Storage Rule (Orders 841 and 841-A), which is consolidated with the National Association of Regulatory Utility Commissioners’ petition (Case No. 19-1147).
    • July 29, 2019 TAPS files a motion to intervene in support of petitioners in the consolidated D.C. Circuit cases.
    • November 6, 2019 TAPS submits brief in support of petitioners in D.C. Circuit.
    • March 2, 2020 TAPS submits reply brief in support of petitioners in D.C. Circuit.
    • Virtual oral argument held May 5, 2020.
    • July 10, 2020 D.C. Circuit denies petitions for review, holding that FERC has exclusive jurisdiction over wholesale market participation by distributed storage, and affirming FERC’s decision not to provide an RERRA opt-out for distributed storage.
  • Data Collection for Analytics and Surveillance and Market-Based Rate Purposes (RM16-17)
    • February 20, 2020 FERC issues an order on rehearing and clarification, Order 860-A, granting TAPS’ August 19, 2019 request for clarification regarding public access to the relational database and denying others’ requests to further weaken its MBR reporting requirements, but denying TAPS’ requests for additional safeguards and requirements to ensure that the relational database functions properly.
    • February 27, 2020 FERC holds technical workshop on MBR database.
    • April 3, 2020 TAPS submits limited follow-up comments to the February 27, 2020 technical workshop requesting an additional technical workshop.
  • Performance Metrics for ISOs, RTOs, and Regions Outside ISOs and RTOs (AD19‑16)
    • July 3, 2019 FERC issues Notice of Information Collection and Request for Comments regarding proposed performance metrics.
    • September 9, 2019 TAPS submits comments suggesting changes to proposed metrics for: (a) Congestion Management, and (b) Capacity Market Procurement and Prices.
    • January 24, 2020 FERC issues Notice of Information Collection and Request for Comments largely adopting performance metrics proposed on July 3, 2019, but modifying Congestion Management metric.
    • March 2, 2020 TAPS submits comments noting with appreciation FERC’s adoption of some changes proposed by TAPS, and FERC staff’s commitment to consider additions or refinements to the metrics in the next iteration of the information collection.
  • Participation of Distributed Energy Resource Aggregations in Markets Operated by Regional Transmission Organizations and Independent System Operators (RM18-9)
    • September 17, 2020 FERC issues Order No. 2222 which includes the small utility opt-in advocated by TAPS.
    • October 16-November 12, 2020 requests for rehearing and clarification filed, including a challenge to the small utility opt-in.
    • November 3, 2020 APPA and NRECA respond to rehearing requests to defend the small utility opt-in.
    • November 19, 2020 FERC issues order denying rehearing by operation of law and providing for further consideration.
  • Cybersecurity Incentives (AD20-19, RM21-3)
    • June 18, 2020 FERC Staff issues white paper proposing to grant incentives for cybersecurity investments that go beyond those required by NERC standards.
    • August 17, 2020 TAPS files comments opposing white paper proposal.
    • September 1, 2020 EEI files reply comments to TAPS and others.
    • December 17, 2020 FERC issues NOPR largely adopting the white paper’s proposal.
  • Impacts of COVID-19 on the Energy Industry (AD20-17)
    • July 1, 2020 FERC issues Notice Inviting Post-Technical Conference Comments.
    • July 8-9, 2020 FERC convenes a remote Commissioner-led technical conference to consider the impacts of COVID-19 on the energy industry.
    • August 31, 2020 TAPS submits comments arguing against COVID-related adjustments to ROE.
  • Proposed Policy Statement on Waiver of Tariff Requirements and Petitions or Complaints for Remedial Relief (PL20-7)
    • May 21, 2020 FERC issues proposed Policy Statement that would significantly change FERC’s approach to requests for waivers of the prior notice requirements to permit effective dates prior to the date of filing.
    • June 18, 2020 TAPS submits comments opposing the proposed Policy Statement, particularly given its adverse impact on long-standing open access requirements.
    • At its October 15, 2020 open meeting, FERC made clear it was not adopting the proposed policy statement, and was instead adhering to existing approach.
  • Petitions for Declaratory Order Regarding MBR Sellers’ Reporting Obligations (EL21-14)
    • October 30, 2020 NextEra Energy, Inc., American Electric Power Company, Inc., Evergy, Inc., Exelon Corporation, and Xcel Energy Services Inc., submit Expedited Petition for Declaratory Order requesting “clarifications” that would reduce market-based rate sellers’ obligation to report information to FERC about their upstream owners.
    • November 30, 2020 TAPS intervenes and protests the petition as an impermissible collateral attack on FERC’s recent market-based rate rulemaking orders, and presenting problems for FERC’s new relational database.
    • December 15, 2020 petitioners submit response to protests.

December 30, 2020 TAPS submits motion for leave to answer and answer to petitioners’ response to protests.