FERC Determines Utilities Must File Reactive Power Service Rate Schedules

The Federal Energy Regulatory Commission (“FERC”) in a remand it had requested from the DC Circuit Court of appeals ruled that a filing made by Chehalis Power Generating, L.P. (“Chehalis“) concerning the rates, terms, and conditions under which it provides reactive power service to Bonneville Power Administration was not an “initial” rate filing under the Federal Power Act (“FPA”) that was exempt from FPA suspension and refunds, but rather a “revised” rate, subject to suspension and refund. FERC reasoned even though Chehalis had provided service for no compensation, the service was FERC jurisdictional service, which required that a rate schedule be on file.

FERC directed its staff to conduct a workshop to explore the mechanics of public utilities filing reactive power rate schedules. The Commission’s ordering of workshops suggests it may expect some complications for utilities in crafting such filings.

Contact: Channing Strother cstrother@mogelsweet.com or 202.630.9023 (direct)