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ARTICLE · 04 MARCH 2026

FERC Eliminates WECC Soft Price Cap

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On February 19, 2026, the Federal Energy Regulatory Commission (FERC) issued an order rescinding the soft price cap for bilateral spot market energy sales in the Western Electricity Coordinating Council (WECC) region.

United StatesEnergy and Natural Resources
Ben N. Reiter
Ben N. Reiter
Stephen Hug
Stephen Hug
Emily P. Mallen
Emily P. Mallen
Sharmila P. Das
Sharmila P. Das
Corban Coffman
Corban Coffman
Barbara Deathe
Barbara Deathe
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On February 19, 2026, the Federal Energy Regulatory Commission (FERC) issued an order rescinding the soft price cap for bilateral spot market energy sales in the Western Electricity Coordinating Council (WECC) region.1 As previously covered, on July 15, 2025, FERC initiated a Federal Power Act Section 206 proceeding following the D.C. Circuit's decision finding that FERC must apply the Mobile-Sierra public interest standard before ordering refunds for above-cap bilateral sales and vacating FERC's orders requiring refunds for certain bilateral spot market transactions in the WECC region that exceeded the $1,000 MWh soft price cap.2 FERC's Order follows through on the proposal it made last July to eliminate the WECCs soft price cap and marks a recognition that Western wholesale markets have evolved over the past two decades to become sufficiently competitive to render the soft price cap unnecessary.

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