FERC, CFTC, and State Energy Law Developments

On July 16, the Federal Energy Regulatory Commission (FERC) issued an order directing market operators in New York and neighboring regions to submit a long-term solution to loop flow issues. In the order, FERC also adopted the findings of an investigation By its enforcement staff into allegations that loop flow issues between the New York Independent System Operator (NYISO) and neighboring markets were a result of market manipulation.

The FERC investigation grew out of a referral By the NYISO’s internal market monitor, who alleged that market participants had submitted circuitous transmission schedules that traversed the systems of multiple Regional Transmission Organizations (RTOs) when more direct routes were available. The internal market monitor claimed that the circuitous scheduling, which utilized paths in the Lake Erie region, increased loop flows and associated uplift costs borne By customers, and violated the rule against market manipulation.  Read more…