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ARTICLE · 27 APRIL 2018

FERC Issues Final Rule Regarding Transparency In Price Formation

Troutman Pepper Locke LLP
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On April 19, 2018, FERC issued a final rule ("Order No. 844") addressing transparency in markets operated by Regional Transmission Organizations ("RTOs") and Independent System Operators ("ISOs").

United StatesEnergy and Natural Resources
Jamond Perry
Jamond Perry
Christopher Zentz
Christopher Zentz
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On April 19, 2018, FERC issued a final rule ("Order No. 844") addressing transparency in markets operated by Regional Transmission Organizations ("RTOs") and Independent System Operators ("ISOs"). FERC required that each RTO/ISO establish in its tariff: requirements to report information about uplift payments for each resource and transmission zone; requirements to report information on each operator-initiated commitment; and the transmission constraint penalty factors used in its market software. Order No. 844 will become effective 75 days after publication in the Federal Register.

On January 19, 2017, FERC issued a Notice of Proposed Rulemaking ("NOPR") that addressed uplift cost allocation practices that it believed were inconsistent with cost causation principles and may distort market outcomes, resulting in rates that are not just and reasonable (see January 24, 2017 edition of the WER). Uplift refers to payments that a regional grid operator tenders to a

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