Belmont Municipal Light Department v. FERC, No. 19-1224 (D.C. Cir. 2022)Annotate this Case
The Federal Power Act (“FPA”), 16 U.S.C. Section 824d(d), ISO-NE filed tariff revisions with the Federal Energy Regulatory Commission (“FERC” or “the Commission”) to compensate generators for maintaining an inventory of energy during the winter months of 2023–24 and 2024–25. The revisions implemented the Inventoried Energy Program (“IEP”), under which ISO-NE will provide additional payments to generators to maintain up to three days’ worth of fuel on-site and convert it into electricity. The Commission issued an order accepting ISO-NE’s proposed tariff revisions. Petitioners contended that FERC’s decision to approve IEP imposes unjust and unreasonable, discriminatory, and preferential rates.
The DC Circuit upheld all but one component of the Commission’s decision to approve ISO-NE’s proposed tariff revisions implementing the Inventoried Energy Program. The court left in intact the Commission’s June 2020 order except for the portion of IEP that is arbitrary and capricious: the agency’s inclusion of nuclear, biomass, coal, hydroelectric generators. The court wrote that it believes there is no substantial doubt that FERC would have adopted IEP if it had not included these resources in the first place, and IEP can function sensibly without them.