MBO Lawyers Address APPA Conference

On November 7, 2011, two MBO attorneys delivered speeches at the American Public Power Association’s 2011 Legal Seminar in Memphis, Tennessee. John Michael Adragna spoke on recent FERC orders concerning centralized capacity markets in regional transmission organizations. He analyzed the history of RTO-run capacity markets, their putative basis, and the threat FERC’s recent orders pose to state energy regulators and to public power and cooperative utilities in ensuring reliable and reasonably priced electricity supply for consumers.

Randolph Elliott spoke on recent FERC orders on demand response compensation in wholesale energy markets. He examined the roots of FERC’s concerns with demand response and the justifications offered for FERC Order No. 745, which requires that RTOs pay demand-response “resources” the same locational marginal price paid to generators when they reduce their energy consumption in RTO-run wholesale energy markets. He explained the questions that have arisen concerning FERC’s jurisdiction to issue the order and FERC’s rationale for the full-LMP payment requirement. For copies of the presentations, email Randolph Elliott.