FERC Eliminates Reactive Power Exemption For Wind Generation

On June 16, 2016, the Federal Energy Regulatory Commission (FERC) issued Order No. 827 ("the Final Rule") revising its pro forma generator interconnection agreements to eliminate the exemption that wind generators enjoyed from the requirement to provide reactive power.^[1] The Final Rule, including the adopted revisions, becomes effective on September 21, 2016. Transmission providers are directed to make filings with FERC to adopt the new requirements.

Background

Recognizing that reactive power is necessary for a transmission system's efficient and reliable operation, FERC, in Order No. 2003, required that large generators provide reactive power in the range of 0.95 leading to 0.95 lagging at the point of interconnection.^[2] However, wishing to "remove unnecessary obstacles to the increased growth of wind generation" FERC, in Order No. 661, continued an exemption first made available in Order No. 2003-A for large wind generators from the reactive power