Hecate Energy Greene County 3 LLC v. FERC, No. 21-1192 (D.C. Cir. 2023)
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Congress requires transmission operators to charge reasonable rates, which must be submitted to the Federal Energy Regulatory Commission through a tariff before the rates can be levied on generators. Here, a generator, Hectate Energy, accuses a transmission grid operator, the New York Independent System Operator, of charging a rate that it had not filed with FERC. Hecate argues that the System Operator’s filed tariff was not detailed enough and that Hectate was surprised when the System Operator charged it $10 million in grid-upgrade costs to connect its power plant to the grid.
FERC rejected Hectate's argument, finding that the tariff imposed by the New York Independent System Operator put Hectate on notice of the cost of grid-update costs.
The D.C. Circuit agreed with FERC, denying Hectates' Petition for Review, finding the tariff was detailed enough and gave notice that the System Operator would include non-jurisdictional projects in its interconnection study to determine responsibility for upgrade costs. FERC’s order pointed to three cross-referenced sections of the tariff to find sufficient notice that the interconnection study would include information about non-jurisdictional projects.
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