[Federal Register Volume 82, Number 249 (Friday, December 29, 2017)]
[Proposed Rules]
[Pages 61699-61700]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-28201]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 35

[Docket No. RM17-3-000]


Fast-Start Pricing in Markets Operated by Regional Transmission 
Organizations and Independent System Operators

AGENCY: Federal Energy Regulatory Commission, DOE.

ACTION: Withdrawal of notice of proposed rulemaking and termination of 
rulemaking proceeding.

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SUMMARY: The Federal Energy Regulatory Commission is withdrawing its 
proposal to amend its regulations to require that each regional 
transmission organization and independent system operator incorporate 
market rules that meet certain requirements when pricing fast-start 
resources.

DATES: As of December 29, 2017, the notice of proposed rulemaking 
published on December 30, 2016, at 81 FR 96,391, is withdrawn.

FOR FURTHER INFORMATION CONTACT:

Daniel Kheloussi (Technical Information), Office of Energy Policy and 
Innovation, Federal Energy Regulatory Commission, 888 First Street NE, 
Washington, DC 20426, (202) 502-6391, <a href="/cdn-cgi/l/email-protection#91f5f0fff8f4fdbffaf9f4fdfee4e2e2f8d1f7f4e3f2bff6fee7"><span class="__cf_email__" data-cfemail="f490959a9d9198da9f9c91989b8187879db492918697da939b82">[email protected]</span></a>.
Angela Amos (Technical Information), Office of Energy Market 
Regulation, Federal Energy Regulatory Commission, 888 First Street NE, 
Washington, DC 20426, (202) 502-6676, <a href="/cdn-cgi/l/email-protection#54353a333138357a35393b2714323126377a333b22"><span class="__cf_email__" data-cfemail="c3a2ada4a6afa2eda2aeacb083a5a6b1a0eda4acb5">[email protected]</span></a>.
Kaleb Lockwood (Legal Information), Office of the General Counsel, 
Federal Energy Regulatory Commission, 888 First Street NE, Washington, 
DC 20426, (202) 502-8255, <a href="/cdn-cgi/l/email-protection#b6ddd7dad3d498dad9d5ddc1d9d9d2f6d0d3c4d598d1d9c0"><span class="__cf_email__" data-cfemail="96fdf7faf3f4b8faf9f5fde1f9f9f2d6f0f3e4f5b8f1f9e0">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION:

[[Page 61700]]

    1. On December 15, 2016, the Commission issued a Notice of Proposed 
Rulemaking (NOPR) in this proceeding.\1\ For the reasons set forth 
below, we are exercising our discretion to withdraw the NOPR and 
terminate this rulemaking proceeding.
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    \1\ Fast-Start Pricing in Markets Operated by Regional 
Transmission Organizations and Independent System Operators, 81 FR 
96,391 (Dec. 30, 2016), FERC Stats. & Regs. ] 32,720 (2016).
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    2. In the NOPR, the Commission preliminarily found that some 
existing regional transmission organization/independent system operator 
(RTO/ISO) fast-start pricing practices, or lack of fast-start pricing 
practices, may not result in rates that are just and reasonable.\2\ As 
a result, the Commission proposed to require that each RTO/ISO 
establish the following set of requirements for its fast-start pricing: 
(1) Apply fast-start pricing to any resource committed by the RTO/ISO 
that is able to start up within ten minutes, has a minimum run time of 
one hour or less, and that submits economic energy offers to the 
market; (2) incorporate commitment costs, i.e., start-up and no-load 
costs, of fast-start resources in energy and operating reserve prices; 
(3) modify fast-start pricing to relax the economic minimum operating 
limit of fast-start resources and treat them as dispatchable from zero 
to the economic maximum operating limit for the purpose of calculating 
prices; (4) if the RTO/ISO allows offline fast-start resources to set 
prices for addressing certain system needs, the resource must be 
feasible and economic; and (5) incorporate fast-start pricing in both 
the day-ahead and real-time markets. The Commission sought comment on 
the proposed reforms.\3\
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    \2\ NOPR, FERC Stats. & Regs. ] 32,720 at PP 36-37.
    \3\ NOPR, FERC Stats. & Regs. ] 32,720 at P 44.
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    3. The Commission received a number of comments in response to the 
proposed reforms in the NOPR. Some commenters expressed support for the 
proposed reforms. Other commenters raised concerns about the need for 
the proposed reforms relative to the burden of implementing changes. 
Additionally, some commenters discussed the need for regional 
flexibility to allow RTOs/ISOs to implement fast-start pricing 
practices that are appropriate for their regions.
    4. Upon further consideration and after review of the comments 
received in response to the NOPR, we will withdraw the NOPR and 
terminate this proceeding. We appreciate the feedback received in 
response to the NOPR. We continue to believe that improved fast-start 
pricing practices have the potential to achieve the goals outlined in 
the NOPR; however, we are persuaded by comments that question whether 
the proposed reforms would bring sufficient value in all RTOs/ISOs and 
argued for regional flexibility. Having considered these comments, we 
are persuaded to not require a uniform set of fast-start pricing 
requirements that would apply to all RTOs/ISOs. Instead, we will pursue 
the goals of the NOPR through section 206 actions involving NYISO, PJM, 
and SPP \4\ focusing on specific concerns with each RTO's/ISO's 
implementation of fast-start pricing consistent with the concerns 
outlined in the NOPR.
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    \4\ New York Independent System Operator, Inc., 161 FERC ] 
61,294; PJM Interconnection, L.L.C., 161 FERC ] 61,295; and 
Southwest Power Pool, Inc., 161 FERC ] 61,296, (2017).
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    5. The Commission therefore withdraws the NOPR and terminates this 
rulemaking proceeding.

    By direction of the Commission.

     Issued: December 21, 2017.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2017-28201 Filed 12-28-17; 8:45 am]
 BILLING CODE 6717-01-P


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