2021 was an active year for TAPS, including the following:

Legislation

In 2021, the House and Senate continued to focus on energy policy after completing significant action on energy legislation at the end of 2020. The work culminated in major energy provisions being included in the Infrastructure Investment and Jobs Act (IIJA).

TAPS engaged with the committees with jurisdiction over energy policy and with other key energy policy leaders to reiterate longstanding policy positions. TAPS engaged with the House and Senate Energy Committees to encourage the Committees to prioritize sound policy initiatives when developing transmission policy.

A major expansion of the nation’s electric transmission system is widely considered necessary to achieve the Biden Administration’s climate goals, which include a GHG-neutral electricity sector by 2035 and net-zero GHG emissions economy-wide by mid-century. In promoting this agenda, the Biden Administration worked to pass the IIJA. Key provisions within the IIJA on which TAPS members engaged included provisions granting FERC additional authority to assure siting of new transmission facilities through the National Interest Electric Transmission Corridors program, and grant programs for funding upgrades to the electric grid.

Although the IIJA included the only major changes to federal law impacting transmission policy, numerous other proposals were floated of significant interest to TAPS members. For example, the House Energy and Commerce Committee introduced legislation, with the support of all Democratic members on the Committee, that would have pierced the current federal-state jurisdictional lines for setting retail access rules.

TAPS maintained its longstanding advocacy 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.

TAPS members continued to advocate for federal support for joint ownership in the electric grid. 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.

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 2021 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 the late Bill Gallagher mobilizing and coordinating TAPS efforts to monitor and participate in activities at both organizations to protect the interests of TDUs. Since Bill Gallagher’s passing, Brian Evans-Mongeon (Utility Services) has been heading up TAPS NERC/NAESB efforts on an interim basis, taking on Bill’s responsibilities on the NERC Member Representatives Committee (“MRC”), the ERO Business Plan and Budget Group, the NAESB Wholesale Electric Quadrant Executive Committee and the NAESB Board of Directors. Chris Norton (AMP) also serves on the NAESB Wholesale Electric Quadrant Executive Committee. Additionally, Roy Jones (ElectriCities) served as Vice Chair of the MRC in 2021, and was elected MRC Chair in September; TAPS Executive Director Terry Huval and John Twitty (MPUA and former TAPS Executive Director) also serve on the MRC. Scott Tomashefsky (NCPA) serves as chair of the Compliance and Certification Committee. TAPS members also 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 2021 TAPS played an important role in the ever-evolving relationship between FERC and NERC.

TAPS 2021 NERC and NAESB-related activities

  • Reliability Technical Conference (AD21-11)
    • March 5, 2021 FERC notices a Commissioner-led technical conference to discuss policy issues related to the reliability of the Bulk-Power System, to be held September 30, 2021.
    • September 30, 2021 FERC holds conference; Roy Jones, CEO of ElectriCities of North Carolina, speaks on behalf of APPA, LPPC, and TAPS on Panel 1: Bulk-Power System Reliability and Security, addressing supply chain cybersecurity, challenges posed by a rapidly evolving resource mix, and NERC’s Electricity Information Sharing and Analysis Center (E-ISAC).
  • Electric Reliability Organization Performance Assessments (RM21-12)
    • January 19, 2021 FERC issues NOPR proposing to amend its regulations on ERO performance assessments.
    • March 1, 2021 TAPS joins APPA, EEI, EPSA, LPPC, and NRECA in comments generally supporting the proposal to require the Commission-certified ERO to submit performance assessments every three years and to comply with additional requirements, in particular the proposed requirement for a public comment period for NERC to solicit input from stakeholders regarding the ERO’s operations, activities, oversight and procedures.
  • Proposed Revisions to the NERC Rules of Procedure (RR19-7, RR21-10, RR21-8)
    • 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-July, 2020 NERC posts multiple rounds of proposed 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, and to the Sanction Guidelines; TAPS comments on each posting.
    • In response to TAPS comments on proposed changes to Sanction Guidelines and ORCP, 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.
    • January 19, 2021 FERC accepts proposed ORCP and Sanction Guidelines changes, and NERC’s proposal regarding ongoing evaluation of Reliability Guidelines, but rejects proposal to replace the ROP’s current requirement of regular audits of the Regional Entities with a “risk-based oversight” program, and states FERC’s “expectation” that Reliability Guidelines will be used to support standards, or where a technical basis for a sound standard does not exist, but not to replace mandatory reliability standards.
    • May 14, 2021 NERC posts proposed changes to Section 300 and Appendices 3B and 3D of the ROP.
    • June 28, 2021 TAPS submits comments to NERC on the proposed changes to Section 300 and Apps. 3B and 3D of the ROP, strongly urging NERC to further revise App. 3D to remove Segment 10 from the Registered Ballot Body. NERC declines to make the proposed revision, stating that it is beyond the scope of the current project, but indicates that it will consider making the change during its next periodic review of the segment criteria under Section 305.3 of the Rules of Procedure.
    • August 18, 2021 NERC submits proposed changes to Section 300 and Appx. 3B and 3D to FERC for approval in Docket No. RR21-8.
    • September 29, 2021 NERC submits proposed CMEP-related ROP changes, incorporating many of TAPS’s suggestions regarding the November 2020 posting, to FERC for approval in Docket No. RR21-10.
    • October 20, 2021 TAPS joins APPA and LPPC in submitting brief comments to FERC in support of the CMEP revisions, particularly the reduced evidence retention requirement and increased CEA discretion over the frequency and format of audits.
  • Cold Weather (NERC Project No. 2019-06, RD21-5)
    • January 27, 2021 Standards Drafting Team posts standards for comment.
    • March 12, 2021 TAPS submits comments to NERC recommending revisions to the draft standards.
    • March 22, 2021 NERC Board takes action without a meeting to direct the completion of proposed Reliability Standards by June 2021.
    • March 29, 2021 Standard Drafting Team posts revised standards for comment, adopting most of TAPS’ proposed revisions.
    • April 26, 2021 revised standards are approved by ballot pool. Standards proceed to 10-day final ballot, with minimal changes, in May 2021.
    • June 11, 2021 NERC Board adopts revised standards.
    • June 17, 2021 NERC petitions FERC for approval of proposed reliability standards EOP-011-2 (Emergency Preparedness and Operations), IRO-010-4 (Reliability Coordinator Data Specification and Collection), and TOP-003-5 (Operational Reliability Data), the associated Violation Risk Factors (VRFs) and Violation Security Levels (VSLs), and its proposed implementation plan.
    • August 24, 2021 FERC approves NERC’s petition and the Cold Weather Reliability Standards.
  • Extreme Cold Weather Grid Operations, Preparedness, and Coordination (NERC Project No. 2021-07)
    • September 23, 2021 FERC and NERC Staff issue draft joint report on 2021 cold weather event, recommending numerous changes to NERC standards.
    • November 2021 NERC Board issues a resolution for the development of standards in response to the staff report on the 2021 cold weather event.
    • November 22, 2021 Standard Authorization Request (“SAR”) posted for comment.
    • December 21, 2021 TAPS submits comments urging NERC to consolidate the proposed grid operations requirements into a single standard and charge individual Generator Owners with determining the conditions to which each generating unit can economically be retrofitted.
    • Jonathan Davidson (City Utilities of Springfield) and Jill Loewer (Utility Services) are appointed to the Standard Drafting Team.
  • Reliability and Security Technical Committee (RSTC)
    • August 27, 2021 TAPS joins APPA and EEI in submitting joint comments to NERC on NERC’s proposed changes to the RSTC Charter.
    • November 4, 2021 NERC Board of Trustees approves revised changes to the RSTC Charter, which address some of the concerns raised by TAPS and others.
  • 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 20, 2021 SM-TDUs provide input regarding future approaches to stakeholder engagement.
      • April 28, 2021 SM-TDUs provide input regarding the Reliability and Security Technical Committee.
      • July 28, 2021 SM-TDUs provide input regarding implementation of ERO policies, procedures and programs for 2021/2022 winter energy readiness.
      • October 20, 2021 SM-TDUs provide input regarding opportunities for increasing ERO Enterprise agility.

TAPS 2021 FERC (Non-Reliability) Efforts

  • TAPS White Paper: Inclusive Joint Transmission Ownership Arrangements:
    An Effective Means to Site and Build Transmission Needed to Support our
    Changing Resource Mix

    • June 25, 2021 TAPS White Paper describes the many benefits of inclusive joint transmission ownership arrangements, which FERC has repeatedly recognized. Recognizing that the nation is embarking on a new round of major transmission investments to accommodate the changing resource mix and transform the grid, the White Paper urges FERC to ensure that the benefits provided by such arrangements are an integral part of the path forward. It asks FERC, in crafting new rules and policies, to seize upon opportunities to make its past encouragement of joint ownership arrangements real, and identifies specific actions FERC could take to do so.
  • Building for the Future Through Electric Regional Transmission Planning and Cost Allocation and Generator Interconnection (RM21-17)
    • July 15, 2021 FERC issues ANOPR seeking comment on potential reforms in three areas: longer-term regional transmission planning and cost-allocation processes that take into account anticipated future generation; cost responsibility for regional transmission facilities and interconnection-related network upgrades; and enhanced transmission oversight over how new transmission facilities are identified and paid for.
    • October 12, 2021 TAPS submits initial comments on ANOPR.
    • November 15, 2021 FERC holds technical conference to examine issues related to incorporating long-term forecasts of future transmission needs during regional transmission planning processes.
  • Modernizing Electricity Market Design (AD21-10)
    • March 23, 2021 FERC holds technical conference to discuss the existing minimum offer price rules (“MOPRs”) and the role of the capacity market constructs in PJM, ISO-NE, and NYISO.
    • April 26, 2021 TAPS submits post-technical conference comments strongly supporting FERC’s consideration of alternatives to expansive MOPRs.
    • September 7, 2021 FERC Staff releases White Paper on Energy and Ancillary Services Market Reforms.
    • September 14, 2021 FERC holds a staff-led technical conference on energy and ancillary services.
    • October 12, 2021 FERC holds a staff-led technical conference on energy and ancillary services.
  • 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.
    • April 15, 2021 FERC issues Supplemental NOPR (RM20-10) proposing to decrease the RTO Incentive Adder rather than increase it. Supplemental NOPR’s proposal to limit the current 50-basis point adder to three years after a transmission owner joins an RTO is consistent with the position TAPS has taken in the Transmission Incentives NOI/NOPR.
    • April 15, 2021 FERC notices workshop (RM20-10 and AD19-19) to “discuss certain performance-based ratemaking approaches, particularly shared savings, that may foster deployment of transmission technologies.”
    • June 25, 2021 TAPS comments in support of the April 15, 2021 Supplemental NOPR.
    • July 26, 2021 TAPS and APPA submit joint reply comments on Supplemental NOPR.
    • September 10, 2021 FERC holds workshop on shared savings incentive approaches to fostering deployment of transmission technologies; Steve Leovy (WPPI) participates on behalf of TAPS.
  • Technical Conference Regarding Managing Transmission Line Ratings (RM20-16)
    • November 19, 2020 FERC issues NOPR proposing to require the use of Ambient-Adjusted Ratings (AARs).
    • March 22, 2021 TAPS submits comments supporting the NOPR’s proposal, subject to additional clarifications.
    • December 16, 2021 FERC issues Order 881, heavily citing TAPS’ comments and largely consistent with TAPS’ positions, but declining TAPS’ request to require RTOs to accommodate the “look-up table” approach to implementing AARs.
  • Data Collection for Analytics and Surveillance and Market-Based Rate Purposes (RM16-17)
    • March 18, 2021 FERC issues a Notice Seeking Comments on a proposal to collect additional MBR data and delays the compliance date of Order No. 860 until July 1, 2021.
    • April 22, 2021 FERC holds technical workshop on MBR database.
    • June 7, 2021 TAPS submits comments supporting the revisions proposed in the Notice in support of our victory in EL21-14.
    • August 19, 2021 FERC issues order adopting the March 2021 NSC proposal consistent with TAPS’s position, and rejecting requests from EEI and EPSA that would have weakened FERC’s market power reporting requirements.
  • Cybersecurity Incentives (RM21-3)
    • December 17, 2020 FERC issues NOPR proposing to grant incentives for cybersecurity investments that go beyond those required by NERC standards.
    • April 6, 2021 TAPS files comments opposing the proposed incentives, and urging against FERC directing development of mandatory standards to require such investments.
    • May 6, 2021 TAPS and APPA file joint reply comments arguing the Commission should not adopt the suggestions of some commenters to expand the cybersecurity incentives proposed in the NOPR or to weaken the proposed application and verification procedures.
    • November 15, 2021 Congress passes the Infrastructure Investment and Jobs Act that directs FERC to first study, then establish, incentive-based rate treatments to encourage investment in advanced cybersecurity technologies and participation in cybersecurity threat information sharing programs.
  • 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.
    • March 18, 2021 FERC issues order accepting the answers and denying petition for a declaratory order, but finding for petitioners that, with the conditions in section 203(a)(2) blanket authorization orders, there is no common control to make those utilities affiliates of each other under 18 C.F.R. § 35.36(a)(9)(iv). The Order relies on arguments raised in TAPS’ protest and expressly states that it agrees with TAPS’ concerns about the rise in institutional investors possessing common partial ownership across utilities with market-based rate authority.
    • April 19, 2021 EEI and NextEra submit requests for clarification and rehearing.
    • May 20, 2021 FERC issues notice denying rehearings by operation of law.
    • June 7, 2021 TAPS submits limited comments in RM16-17 to support implementation of the MBR relational database in a manner that effectuates our victory. See Data Collection for Analytics and Surveillance and Market-Based Rate Purposes (RM16-17).
    • June 17, 2021 FERC issues rehearing order sustaining the findings of the March 18 Order and granting modest clarification to NextEra.
  • Petition for Declaratory Order Regarding Jurisdiction (EL21-42)
    • January 22, 2021 Quincy-Columbia Basin Irrigation District and East Columbia Basin Irrigation District (“the Districts”) request FERC issue an order declaring that FPA section 211A does not grant FERC jurisdiction over an unregulated transmitting utility solely as a result of the utility establishing different transmission rates by customer class or by contract.
    • February 19, 2021 Public Utility District No. 2 of Grant County (“Grant PUD”, and counterparty to the District), intervenes and protests, rejecting the Districts’ arguments.
    • February 22, 2021 TAPS intervenes without protest. APPA, LPPC and the National Rural Electric Cooperative Association intervene and protest, arguing the petition should be dismissed because FERC has no jurisdiction in the absence of a petition for transmission service under FPA section 211A, and the requested declaration would not resolve the controversy between the Districts and Grant PUD.
    • July 15, 2021 FERC grants the Districts’ petition, finding that section 211A does not prohibit a non-public utility from establishing separate rate classes, but emphasizing FERC has authority under Section 211A(b)(1) to require that such rates are comparable to those that the non-public utility charges itself.