FERC Rejects two unilateral reactve power settlements

​On November 19, 2020, FERC rejected two unilateral reactive power revenue requirement settlements.  Both were neither supported nor opposed by the parties, but Trial Staff opposed both.  In the Allegheny case, FERC Trial Staff opposed the settlement because they were not provided information to determine if the reactive power revenue requirement was reasonable.  Hearing procedures have been resumed for both cases.  The Allegany case is the first litigated reactive power revenue requirement case and presents FERC with an opportunity to address how to apply the AEP methodology to wind resources.      
Lawrenceburg Power, LLC, Docket No. ER18-2497-002. The order addresses an offer of settlement that was unilaterally filed by Lawrenceburg Power regarding its reactive power rates. The settlement was neither supported nor opposed by any parties but was opposed by FERC Trial Staff. The order finds that the settlement has not been shown to be fair and reasonable and in the public interest. The order remands the proceeding to the Chief Administrative Law Judge to resume hearing procedures.
 
Allegheny Ridge Wind Farm, LLC, Docket No. ER19-229-001. The order addresses an offer of settlement that was unilaterally filed by Allegheny Ridge Wind Farm regarding its reactive power rates. The settlement was neither supported nor opposed by any parties but was opposed by Trial Staff. The order finds that the settlement has not been shown to be fair and reasonable and in the public interest, and it remands the proceeding to the Chief Administrative Law Judge to resume hearing procedures.