82_FR_61948 82 FR 61699 - Fast-Start Pricing in Markets Operated by Regional Transmission Organizations and Independent System Operators

82 FR 61699 - Fast-Start Pricing in Markets Operated by Regional Transmission Organizations and Independent System Operators

DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission

Federal Register Volume 82, Issue 249 (December 29, 2017)

Page Range61699-61700
FR Document2017-28201

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.

Federal Register, Volume 82 Issue 249 (Friday, December 29, 2017)
[Federal Register Volume 82, Number 249 (Friday, December 29, 2017)]
[Proposed Rules]
[Pages 61699-61700]
From the Federal Register Online  [www.thefederalregister.org]
[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published on December 30, 2016, at 81 FR 96,391, is withdrawn.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, [email protected].
Angela Amos (Technical Information), Office of Energy Market 
Regulation, Federal Energy Regulatory Commission, 888 First Street NE, 
Washington, DC 20426, (202) 502-6676, [email protected].
Kaleb Lockwood (Legal Information), Office of the General Counsel, 
Federal Energy Regulatory Commission, 888 First Street NE, Washington, 
DC 20426, (202) 502-8255, [email protected].

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



                                                                       Federal Register / Vol. 82, No. 249 / Friday, December 29, 2017 / Proposed Rules                                                 61699

                                                 in the ADDRESSES section of this                        Since this is a routine matter that will                  (Lat. 41°22′04″ N, long. 91°08′54″ W.)
                                                 document. FAA Order 7400.11B lists                      only affect air traffic procedures and air                That airspace extending upward from 700
                                                 Class A, B, C, D, and E airspace areas,                 navigation, it is certified that this                   feet above the surface within a 6.6-mile
                                                 air traffic service routes, and reporting               proposed rule, when promulgated,                        radius of Muscatine Municipal Airport and
                                                 points.                                                 would not have a significant economic                   within 3.8 miles either side of the 238°
                                                                                                         impact on a substantial number of small                 bearing from the airport from the 6.6-mile
                                                 The Proposal                                                                                                    radius to 10.5 miles southwest of the airport.
                                                                                                         entities under the criteria of the
                                                    The FAA is proposing an amendment                    Regulatory Flexibility Act.                               Issued in Fort Worth, Texas, on December
                                                 to Title 14 Code of Federal Regulations                                                                         19, 2017.
                                                 (14 CFR) part 71 that would:                            Environmental Review                                    Christopher L. Southerland,
                                                    Modify Class E airspace designated as                   This proposal will be subject to an                  Acting Manager, Operations Support Group,
                                                 a surface area to within a 4.1-mile                     environmental analysis in accordance                    ATO Central Service Center.
                                                 radius (increased from a 3.9-mile radius)               with FAA Order 1050.1F,                                 [FR Doc. 2017–28048 Filed 12–28–17; 8:45 am]
                                                 of Muscatine Municipal Airport,                         ‘‘Environmental Impacts: Policies and                   BILLING CODE 4910–13–P
                                                 Muscatine, IA, with an extension 1.0                    Procedures’’ prior to any FAA final
                                                 mile either side of the 305° bearing from               regulatory action.
                                                 the airport from the 4.1-mile radius to
                                                                                                         List of Subjects in 14 CFR Part 71                      DEPARTMENT OF ENERGY
                                                 4.4 miles northwest of the airport, and
                                                 an extension 1.0 mile either side of the                  Airspace, Incorporation by reference,                 Federal Energy Regulatory
                                                 238° bearing from the airport from the                  Navigation (air).                                       Commission
                                                 4.1-mile radius to 4.4 miles southwest of               The Proposed Amendment
                                                 the airport; and                                                                                                18 CFR Part 35
                                                    Modify Class E airspace extending                      Accordingly, pursuant to the
                                                 upward from 700 feet above the surface                  authority delegated to me, the Federal                  [Docket No. RM17–3–000]
                                                 at Muscatine Municipal Airport by                       Aviation Administration proposes to
                                                 removing the Port City VOR/DME from                     amend 14 CFR part 71 as follows:                        Fast-Start Pricing in Markets Operated
                                                 the airspace description, removing the                                                                          by Regional Transmission
                                                 extensions referencing the Port City                    PART 71—DESIGNATION OF CLASS A,                         Organizations and Independent
                                                 VOR/DME, and adding an extension 3.8                    B, C, D, AND E AIRSPACE AREAS; AIR                      System Operators
                                                 miles either side of the 238° bearing                   TRAFFIC SERVICE ROUTES; AND
                                                                                                                                                                 AGENCY: Federal Energy Regulatory
                                                 from the airport from the 6.6-mile radius               REPORTING POINTS
                                                                                                                                                                 Commission, DOE.
                                                 to 10.5 miles southwest of the airport.                 ■ 1. The authority citation for 14 CFR                  ACTION: Withdrawal of notice of
                                                    Airspace reconfiguration is necessary                part 71 continues to read as follows:                   proposed rulemaking and termination of
                                                 due to the decommissioning of the Port                                                                          rulemaking proceeding.
                                                 City VOR as part of the VOR MON                           Authority: 49 U.S.C. 106(f), 106(g); 40103,
                                                                                                         40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR,
                                                 Program, and to bring the airspace and                  1959–1963 Comp., p. 389.                                SUMMARY:    The Federal Energy
                                                 airspace descriptions into compliance                                                                           Regulatory Commission is withdrawing
                                                 with FAA Order 7400.2L, Procedures for                  § 71.1       [Amended]                                  its proposal to amend its regulations to
                                                 Handling Airspace Matters. Controlled                   ■ 2. The incorporation by reference in                  require that each regional transmission
                                                 airspace is necessary for the safety and                14 CFR 71.1 of FAA Order 7400.11B,                      organization and independent system
                                                 management of IFR operations at the                     Airspace Designations and Reporting                     operator incorporate market rules that
                                                 airport.                                                Points, dated August 3, 2017, and                       meet certain requirements when pricing
                                                    Class E airspace designations are                    effective September 15, 2017, is                        fast-start resources.
                                                 published in paragraph 6002 and 6005,                   amended as follows:                                     DATES: As of December 29, 2017, the
                                                 respectively, of FAA Order 7400.11B,                                                                            notice of proposed rulemaking
                                                 dated August 3, 2017, and effective                     Paragraph 6002 Class E Airspace Areas
                                                                                                         Designated as Surface Areas.                            published on December 30, 2016, at 81
                                                 September 15, 2017, which is                                                                                    FR 96,391, is withdrawn.
                                                 incorporated by reference in 14 CFR                     *        *      *      *       *
                                                                                                                                                                 FOR FURTHER INFORMATION CONTACT:
                                                 71.1. The Class E airspace designations                 ACE IA E2 Muscatine, IA [Amended]
                                                 listed in this document will be                                                                                 Daniel Kheloussi (Technical
                                                                                                         Muscatine Municipal Airport, IA
                                                 published subsequently in the Order.                      (Lat. 41°22′04″ N, long. 91°08′54″ W)
                                                                                                                                                                    Information), Office of Energy Policy
                                                                                                                                                                    and Innovation, Federal Energy
                                                 Regulatory Notices and Analyses                           Within a 4.1-mile radius of Muscatine
                                                                                                         Municipal Airport, and within 1.0 mile either
                                                                                                                                                                    Regulatory Commission, 888 First
                                                   The FAA has determined that this                      side of the 305° bearing from the airport from             Street NE, Washington, DC 20426,
                                                 proposed regulation only involves an                    the 4.1-mile radius to 4.4 miles northwest of              (202) 502–6391, daniel.kheloussi@
                                                 established body of technical                           the airport, and within 1.0 mile either side               ferc.gov.
                                                 regulations for which frequent and                      of the 238° bearing from the airport from the           Angela Amos (Technical Information),
                                                 routine amendments are necessary to                     4.1-mile radius to 4.4 miles southwest of the              Office of Energy Market Regulation,
                                                                                                         airport. This Class E airspace area is effective           Federal Energy Regulatory
                                                 keep them operationally current, is non-                during specific dates and times established in
                                                 controversial and unlikely to result in                                                                            Commission, 888 First Street NE,
                                                                                                         advance by a Notice to Airmen. The effective
                                                 adverse or negative comments. It,                       date and time will thereafter be continuously              Washington, DC 20426, (202) 502–
ethrower on DSK3G9T082PROD with PROPOSALS




                                                 therefore: (1) Is not a ‘‘significant                   published in the Chart Supplement.                         6676, angela.amos@ferc.gov.
                                                 regulatory action’’ under Executive                                                                             Kaleb Lockwood (Legal Information),
                                                                                                         Paragraph 6005 Class E Airspace Areas                      Office of the General Counsel, Federal
                                                 Order 12866; (2) is not a ‘‘significant                 Extending Upward From 700 Feet or More
                                                 rule’’ under DOT Regulatory Policies                    Above the Surface of the Earth.
                                                                                                                                                                    Energy Regulatory Commission, 888
                                                 and Procedures (44 FR 11034; February                                                                              First Street NE, Washington, DC
                                                                                                         *        *      *      *       *                           20426, (202) 502–8255,
                                                 26, 1979); and (3) does not warrant
                                                 preparation of a regulatory evaluation as               ACE IA E5 Muscatine, IA [Amended]                          kaleb.lockwood@ferc.gov.
                                                 the anticipated impact is so minimal.                   Muscatine Municipal Airport, IA                         SUPPLEMENTARY INFORMATION:



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                                                 61700                 Federal Register / Vol. 82, No. 249 / Friday, December 29, 2017 / Proposed Rules

                                                    1. On December 15, 2016, the                         to achieve the goals outlined in the                  analysis of these synthetic opioids, as
                                                 Commission issued a Notice of                           NOPR; however, we are persuaded by                    well as administrative, civil, and
                                                 Proposed Rulemaking (NOPR) in this                      comments that question whether the                    criminal remedies with respect to
                                                 proceeding.1 For the reasons set forth                  proposed reforms would bring sufficient               persons who fail to comply with such
                                                 below, we are exercising our discretion                 value in all RTOs/ISOs and argued for                 requirements or otherwise violate the
                                                 to withdraw the NOPR and terminate                      regional flexibility. Having considered               CSA with respect to these substances.
                                                 this rulemaking proceeding.                             these comments, we are persuaded to                   DATES: December 29, 2017.
                                                    2. In the NOPR, the Commission                       not require a uniform set of fast-start               FOR FURTHER INFORMATION CONTACT:
                                                 preliminarily found that some existing                  pricing requirements that would apply                 Michael J. Lewis, Diversion Control
                                                 regional transmission organization/                     to all RTOs/ISOs. Instead, we will                    Division, Drug Enforcement
                                                 independent system operator (RTO/ISO)                   pursue the goals of the NOPR through                  Administration; Mailing Address: 8701
                                                 fast-start pricing practices, or lack of                section 206 actions involving NYISO,                  Morrissette Drive, Springfield, Virginia
                                                 fast-start pricing practices, may not                   PJM, and SPP 4 focusing on specific                   22152; Telephone: (202) 598–6812.
                                                 result in rates that are just and                       concerns with each RTO’s/ISO’s
                                                 reasonable.2 As a result, the                                                                                 SUPPLEMENTARY INFORMATION: This
                                                                                                         implementation of fast-start pricing
                                                 Commission proposed to require that                     consistent with the concerns outlined in              notice of intent is issued pursuant to the
                                                 each RTO/ISO establish the following                    the NOPR.                                             temporary scheduling provisions of 21
                                                 set of requirements for its fast-start                    5. The Commission therefore                         U.S.C. 811(h). The Drug Enforcement
                                                 pricing: (1) Apply fast-start pricing to                withdraws the NOPR and terminates                     Administration (DEA) intends to issue a
                                                 any resource committed by the RTO/ISO                   this rulemaking proceeding.                           temporary order (in the form of a
                                                 that is able to start up within ten                                                                           temporary amendment) placing
                                                                                                           By direction of the Commission.                     fentanyl-related substances in schedule
                                                 minutes, has a minimum run time of
                                                                                                           Issued: December 21, 2017.                          I of the Controlled Substances Act. The
                                                 one hour or less, and that submits
                                                                                                         Nathaniel J. Davis, Sr.,                              temporary scheduling order will be
                                                 economic energy offers to the market;
                                                 (2) incorporate commitment costs, i.e.,                 Deputy Secretary.                                     published in the Federal Register on or
                                                 start-up and no-load costs, of fast-start               [FR Doc. 2017–28201 Filed 12–28–17; 8:45 am]          after January 29, 2018.
                                                 resources in energy and operating                       BILLING CODE 6717–01–P
                                                                                                                                                               Legal Authority
                                                 reserve prices; (3) modify fast-start
                                                 pricing to relax the economic minimum                                                                            Section 201 of the Controlled
                                                 operating limit of fast-start resources                 DEPARTMENT OF JUSTICE                                 Substances Act (CSA), 21 U.S.C. 811,
                                                 and treat them as dispatchable from zero                                                                      provides the Attorney General with the
                                                 to the economic maximum operating                       Drug Enforcement Administration                       authority to temporarily place a
                                                 limit for the purpose of calculating                                                                          substance in schedule I of the CSA for
                                                 prices; (4) if the RTO/ISO allows offline               21 CFR Part 1308                                      two years without regard to the
                                                 fast-start resources to set prices for                  [Docket No. DEA–476]
                                                                                                                                                               requirements of 21 U.S.C. 811(b) if he
                                                 addressing certain system needs, the                                                                          finds that such action is necessary to
                                                 resource must be feasible and economic;                 Schedules of Controlled Substances:                   avoid an imminent hazard to the public
                                                 and (5) incorporate fast-start pricing in               Temporary Placement of Fentanyl-                      safety. 21 U.S.C. 811(h)(1). In addition,
                                                 both the day-ahead and real-time                        Related Substances in Schedule I                      if proceedings to control a substance
                                                 markets. The Commission sought                                                                                permanently are initiated under 21
                                                 comment on the proposed reforms.3                       AGENCY:  Drug Enforcement                             U.S.C. 811(a)(1) while the substance is
                                                    3. The Commission received a number                  Administration, Department of Justice.                temporarily controlled under section
                                                 of comments in response to the                          ACTION: Proposed amendment; notice of                 811(h), the Attorney General may
                                                 proposed reforms in the NOPR. Some                      intent.                                               extend the temporary scheduling for up
                                                 commenters expressed support for the                                                                          to one year. 21 U.S.C. 811(h)(2).
                                                                                                         SUMMARY:   The Administrator of the Drug
                                                 proposed reforms. Other commenters                                                                               Where the necessary findings are
                                                                                                         Enforcement Administration is
                                                 raised concerns about the need for the                                                                        made, a substance may be temporarily
                                                                                                         publishing this notice of intent to issue
                                                 proposed reforms relative to the burden                                                                       scheduled if it is not listed in any other
                                                                                                         an order temporarily scheduling
                                                 of implementing changes. Additionally,                                                                        schedule under section 202 of the CSA,
                                                                                                         fentanyl-related substances that are not
                                                 some commenters discussed the need                                                                            21 U.S.C. 812, or if there is no
                                                                                                         currently listed in any schedule of the
                                                 for regional flexibility to allow RTOs/                                                                       exemption or approval in effect for the
                                                                                                         Controlled Substances Act (CSA). The
                                                 ISOs to implement fast-start pricing                                                                          substance under section 505 of the
                                                                                                         temporary order will place these
                                                 practices that are appropriate for their                                                                      Federal Food, Drug, and Cosmetic Act
                                                                                                         substances in schedule I. This action is
                                                 regions.                                                                                                      (FD&C Act), 21 U.S.C. 355. 21 U.S.C.
                                                    4. Upon further consideration and                    based on a finding by the Administrator
                                                                                                                                                               811(h)(1). The Attorney General has
                                                 after review of the comments received                   that the placement of these synthetic
                                                                                                                                                               delegated scheduling authority under 21
                                                 in response to the NOPR, we will                        opioids in schedule I is necessary to
                                                                                                                                                               U.S.C. 811 to the Administrator of the
                                                 withdraw the NOPR and terminate this                    avoid an imminent hazard to the public
                                                                                                                                                               DEA. 28 CFR 0.100.
                                                 proceeding. We appreciate the feedback                  safety. When it is issued, the temporary
                                                 received in response to the NOPR. We                    scheduling order will impose regulatory               Background
                                                 continue to believe that improved fast-                 requirements under the CSA on the
                                                                                                                                                               The Nature of the Problem and DEA’s
ethrower on DSK3G9T082PROD with PROPOSALS




                                                 start pricing practices have the potential              manufacture, distribution, reverse
                                                                                                                                                               Approach To Correct It
                                                                                                         distribution, possession, importation,
                                                   1 Fast-Start                                          exportation, research, and conduct of                    It is well known that deaths
                                                               Pricing in Markets Operated by
                                                 Regional Transmission Organizations and                 instructional activities, and chemical                associated with the abuse of substances
                                                 Independent System Operators, 81 FR 96,391 (Dec.                                                              structurally related to fentanyl 1 in the
                                                 30, 2016), FERC Stats. & Regs. ¶ 32,720 (2016).           4 New York Independent System Operator, Inc.,
                                                   2 NOPR, FERC Stats. & Regs. ¶ 32,720 at PP 36–
                                                                                                         161 FERC ¶ 61,294; PJM Interconnection, L.L.C., 161     1 As explained further below, in this document,
                                                 37.                                                     FERC ¶ 61,295; and Southwest Power Pool, Inc., 161    the term ‘‘fentanyl-related substances’’ is defined to
                                                   3 NOPR, FERC Stats. & Regs. ¶ 32,720 at P 44.         FERC ¶ 61,296, (2017).                                include substances structurally related to fentanyl



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Document Created: 2018-01-03 13:16:44
Document Modified: 2018-01-03 13:16:44
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionWithdrawal of notice of proposed rulemaking and termination of rulemaking proceeding.
DatesAs of December 29, 2017, the notice of proposed rulemaking published on December 30, 2016, at 81 FR 96,391, is withdrawn.
ContactDaniel Kheloussi (Technical Information), Office of Energy Policy and Innovation, Federal Energy Regulatory Commission, 888 First Street NE, Washington, DC 20426, (202) 502-6391, [email protected] Angela Amos (Technical Information), Office of Energy Market Regulation, Federal Energy Regulatory Commission, 888 First Street NE, Washington, DC 20426, (202) 502-6676, [email protected] Kaleb Lockwood (Legal Information), Office of the General Counsel, Federal Energy Regulatory Commission, 888 First Street NE, Washington, DC 20426, (202) 502-8255, [email protected]
FR Citation82 FR 61699 

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