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ARTICLE · 07 AUGUST 2018

FERC Suggests Interstate Power Flows Could Be Coming To ERCOT

Troutman Pepper Locke LLP
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This passage, while arguably dicta, seemed to warn the applicants and other ERCOT market participants that jurisdictional lines could soon be changing.

United StatesEnergy and Natural Resources
Russell Kooistra
Russell Kooistra
Thomas S. DeVita
Thomas S. DeVita
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On July 26, 2018, FERC approved AEP Energy Partners, Inc.'s ("AEP Energy") request that Sharyland Utilities, L.P., AEP Texas, Inc., and Electric Transmission Texas, LLC (collectively, "Tie Owners") provide AEP Energy with transmission service across interconnections between the Electric Reliability Council of Texas ("ERCOT") and the Mexcian Comisión Federal de Electricidad ("CFE") transmission system. In issuing that ruling, FERC seemingly went out of its way to suggest that if two proposed transmission projects – unrelated to AEP Energy's request – are completed, the interconnections between ERCOT and the CFE system could result in interstate power flows in ERCOT. While the Commission did not go any further other than to point out this fact, if FERC finds that such interstate power flows exist, FERC could potentially subject utilities in ERCOT to FERC's plenary Federal Power Act ("FPA") jurisdiction.

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