Federal Register / Vol. 80, No. 39 / Friday, February 27, 2015 / Notices 10681 

38See, e.g., ISO New England, Inc. 125 FERC 

61,102, at PP 82–84, order on clarification, 125 

FERC ¶ 61,234 (2008), order denying reh’g, 130 

FERC ¶ 61,089 (2010). 

39 Midwest Indep. Transmission Sys. Operator, 

Inc., 140 FERC ¶ 61,237, at P 138 (2012), order on 

compliance, 148 FERC ¶ 61,056, at P 44 (2014). 

40PJM Interconnection, L.L.C., 107 FERC ¶ 

61,112, at P 22 (2004). 

41Midwest Indep. Transmission Sys. Operator, 

Inc., 140 FERC ¶ 61,237, at P 154 (2012). 

42See, e.g., PJM OATT 120. 

43See, e.g., PJM OATT 118; ISO–NE, 

Transmission Markets and Services Tariff, 

III.13.2.5.2.5 (18.0.0); MISO, FERC Electric Tariff, 

38.2.7 (4.0.0); CAISO, eTariff, 43.2.6 (1.0.0). 

44See, ISO New England Inc., 125 FERC ¶ 61,102, 

at PP 45–48 (2008). 

the generator the reliability study report 

and NYISO’s RMR proposal should 

address which entity will file the 

reliability report(s) with the 

Commission. 

19. NYISO’s RMR proposal should 

address the circumstance of accelerated 

cost recovery for generators that require 

upgrades, retrofitting, repowering, or 

some other form of additional 

investment required to continue 

operating during the term of the RMR 

agreement, to ensure that in such 

circumstances generators are 

appropriately compensated.38 In 

addition, the proposal should likewise 

address recovery of such investments 

from RMR generators should the RMR 

unit receive compensation for the 

investment during the term of the RMR 

agreement but then continue to operate 

as a merchant unit after the term of the 

RMR agreement.39 Such provisions 

should ensure that generators under 

RMR agreements will not recover more 

than an allocable portion of the cost of 

such investments from providing RMR 

service. 

C. RMR Cost Allocation 

20. NYISO’s RMR compliance filing 

should include tariff provisions 

specifying a methodology for allocating 

the costs of RMR agreements, as 

appropriate cost allocation is essential 

to ensuring that the rates charged are 

just and reasonable and not unduly 

discriminatory or preferential.40

Moreover, disclosing the allocation of 

RMR costs in this manner will enable 

the entities to whom the costs may be 

allocated to better understand their 

potential responsibility for the RMR 

costs.41 Other RTOs and ISOs have 

adopted different approaches to address 

the recovery of the costs associated with 

agreements like the RMR agreements 

discussed in this order. For example, in 

PJM Interconnection, L.L.C. (PJM), RMR 

costs are allocated to the load in the 

zone(s) of the transmission owners that 

will be assigned financial responsibility 

for the reliability upgrades necessary to 

alleviate the reliability impact that 

would result from the unit’s 

deactivation.42 NYISO should ensure 

that any cost allocation regime is 

consistent with the Commission’s cost 

allocation principles and precedents. 

D. Toggling Provisions 

21. NYISO’s proposal should also 

include rules to eliminate, or at least 

minimize, incentives for a generator 

needed for reliability to toggle between 

receiving RMR compensation and 

market-based compensation for the 

same units.43 The Commission 

appreciates that uneconomic units 

could become economic for a number of 

reasons, including changing market 

conditions and the need for and timing 

of capital investments. However, the 

Commission is concerned that any 

proposed provisions not provide an 

incentive for a generation resource to 

propose to deactivate earlier than it 

otherwise would have in expectation of 

being needed for reliability and, 

therefore, be able to receive more 

revenues under an RMR service 

agreement than by remaining in the 

market. As noted above, the tariff 

provisions should not provide an 

incentive for a generation resource to reenter the market after having received 

accelerated recovery of the cost of 

additional investments made under its 

RMR agreement.44 Accordingly, to 

address the Commission’s concerns 

related to toggling, NYISO should craft 

tariff provisions that provide clear 

guidance to generators regarding the 

implications of a deactivation notice. 

The Commission Orders 

(A) Pursuant to the authority 

contained in and subject to the 

jurisdiction conferred upon the Federal 

Energy Regulatory Commission by 

section 402(a) of the Department of 

Energy Organization Act and by the 

Federal Power Act, particularly section 

206 thereof, and pursuant to the 

Commission’s Rules of Practice and 

Procedure and the regulations under the 

Federal Power Act (18 CFR Chapter I), 

the Commission hereby institutes a 

proceeding in Docket No. EL15–37–000 

concerning the justness and 

reasonableness of NYISO’s Tariff with 

regard to RMR issues, as discussed in 

the body of this order. 

(B) Within 120 days of the date of 

issuance of this order, NYISO shall 

submit a compliance filing containing a 

proposed RMR Rate Schedule and pro 

forma RMR agreement, as discussed in 

the body of this order. 

(C) Any interested person desiring to 

be heard in this proceeding must file a 

notice of intervention or motion to 

intervene, as appropriate, with the 

Federal Energy Regulatory Commission, 

888 First Street NE., Washington, DC 

20426, in accordance with Rule 214 of 

the Commission’s Rules of Practice and 

Procedure (18 CFR 385.214 (2014)) 

within 21 days of the date of this order. 

(D) The Secretary is hereby directed to 

promptly publish this order in the 

Federal Register. 

By the Commission. 

Issued: February 19, 2015. 

Kimberly D. Bose, 

Secretary. 

[FR Doc. 2015–04119 Filed 2–26–15; 8:45 am] 

BILLING CODE 6717–01–P 

DEPARTMENT OF ENERGY 

Federal Energy Regulatory 

Commission 

[Docket No. EL14–33–000] 

DATC Path 15, LLC; Notice of 

Institution of Section 206 Proceeding 

and Refund Effective Date 

On April 17, 2014, the Commission 

issued an order in Docket No. EL14–33– 

000, pursuant to section 206 of the 

Federal Power Act (FPA), 16 U.S.C. 

824e (2012), instituting an investigation 

to determine the justness and 

reasonableness of DATC Path 15, LLC’s 

proposed transmission revenue 

requirement reduction. DATC Path 15, 

LLC, 147 FERC ¶ 61,035 (2014). 

The refund effective date in Docket 

No. EL14–33–000, established pursuant 

to section 206(b) of the FPA, will be the 

date of publication of this notice in the 

Federal Register. 

Dated: February 23, 2015. 

Kimberly D. Bose, 

Secretary. 

[FR Doc. 2015–04082 Filed 2–26–15; 8:45 am] 

BILLING CODE 6717–01–P 

DEPARTMENT OF ENERGY 

Federal Energy Regulatory 

Commission 

[Docket No. PF15–1–000] 

PennEast Pipeline Company, LLC; 

Notice of Postponement of Public 

Scoping Meeting for the Penneast 

Pipeline Project 

On January 13, 2015, the Federal 

Energy Regulatory Commission (FERC 

or Commission) issued a Notice of 

Intent to Prepare an Environmental 

mstockstill on DSK4VPTVN1PROD with NOTICES