December 10, 2025

Regulatory Update for December 10, 2025

(Covering December 3 - December 9, 2025)

Our energy regulatory team has compiled a list of state and federal energy regulatory developments to keep you up to speed on key energy regulatory matters from across the United States. Stoel’s energy regulatory team is always available to answer questions about any of these developments. Click here to meet the energy regulatory team.

Jump to the following jurisdictions:

State Regulatory Agencies

• California Public Utilities Commission (CPUC)
• California Energy Commission (CEC)
• California Air Resources Board (CARB)
• Minnesota Public Utilities Commission (MPUC)
• Pacific Northwest (WUTC, BPA)

Federal Regulatory Agencies

• Federal Energy Regulatory Commission (FERC)

Independent System Operators (ISO) and Regional Transmission Organizations (RTO)

• California Independent System Operator (CAISO)
• Midcontinent Independent System Operator (MISO)
• PJM Interconnection (PJM)
• Southwest Power Pool (SPP)
• ISO New England (ISO-NE)
• Electric Reliability Council of Texas (ERCOT)

Click here to download this update as a PDF

State Regulatory Agencies

CALIFORNIA PUBLIC UTILITIES COMMISSION (CPUC or COMMISSION)[1]

Proposed Decisions and Resolutions

Resolution (Res) E-5437

This Resolution approves one mid-term reliability (MTR) long term resource adequacy agreement with energy settlement storage contract between Pacific Gas and Electric Company (PG&E) and the Balsam Project, LLC (Balsam Project contract), for the Dirac Battery Energy Storage System (Dirac Project).  The Dirac Project will be developed by Aypa Power Development through their subsidiary, Balsam Project, LLC.  The Balsam Project contract is for a total of 225 megawatts of nameplate capacity and is expected to be commercially online by May 20, 2028, and deliver for a term of fifteen years beginning August 1, 2028.  PG&E procured this lithium-ion battery resource to satisfy a portion of its MTR requirements.

Voting Meeting

The CPUC held a voting meeting in San Francisco, California on December 4, 2025, at 11:00 a.m. PT.  The results for the energy-related items on the agenda are below:  

Item 2. Rulemaking (R.) 20-05-012 (Order Instituting Rulemaking Regarding Policies, Procedures and Rules for the Self-Generation Incentive Program and Related Issues)

This decision establishes the conditions for returning ratepayer funds and closing out all activities related to the ratepayer-funded portion of the Self-Generation Incentive Program (SGIP).  The decision also implements the greenhouse gas (GHG) Reduction Fund portion of SGIP as well as conditions for its closure in 2028.  Also included in this decision are modifications to existing rules for extending SGIP projects and participation in a qualifying demand response program for SGIP’s Residential Solar and Storage Equity budget.  Signed, Decision (D.) 25-12-003.

Item 3. R.18-07-003 (Order Instituting Rulemaking to Continue Implementation and Administration, and Consider Further Development, of California Renewables Portfolio Standard Program)

This decision denies the March 6, 2025 petition to modify D.20-08-043, filed by the Bioenergy Association of California (BAC).  BAC is seeking to extend or remove the end date of the Bioenergy Market Adjusting Tariff (BioMAT) and proposes other programmatic changes, primarily due to underutilization of this high-cost program and availability of other procurement options for bioenergy resources.  The decision contends that maintaining the BioMAT end date, December 31, 2025, as directed by the Commission in D.20-08-043, is in alignment with the October 30, 2024 Governor’s Executive Order N-5-24 on affordability, and will allow Commission resources to be directed toward more effective clean energy programs.  Held to December 18, 2025.

Item 6. Application (A.) 23-07-008 (In the Matter of the Application of California Resources Production Corporation for a Certificate of Public Convenience and Necessity to Operate as a Gas Corporation in the State of California)

This decision denies A.23-07-008 and the request to hold this proceeding in abeyance made by the cities of Antioch and Brentwood, California.  The decision further denies California Resources Production Corporation’s (CRPC) motion to amend A.23-07-008, and grants for a period of three years CRPC’s motions to file certain materials as confidential under seal.  Held to December 18, 2025.

Item 9. R.23-03-007 (Order Instituting Rulemaking to Set Wildfire Fund Non-Bypassable Charge)

This decision approves the California Department of Water Resources’ requested Wildfire Fund revenue requirement for 2026.  This decision adopts a $0.00591 per kilowatt hour (kWh) rate amount for the 2026 Wildfire Fund Non-Bypassable Charge in order to collect $908.9 million from January 1, 2026, through December 31, 2026.  Given the projected $6.5 million undercollection through 2025, this will result in a 2026 annual revenue requirement of $902.4 million for the Wildfire Fund Non-Bypassable Charge.  Signed, D.25-12-006.

Item 11. R.20-08-022 (Clean Energy Financing Tariff On-Bill Pilot Program)

This decision authorizes Southern California Edison (SCE) to recover $7 million to administer its Tariff On-Bill Financing Pilot proposal, with modifications, and denies the proposals put forth by San Diego Gas & Electric Company (SDG&E), Southern California Gas Company, and Silicon Valley Clean Energy.  Held to December 18, 2025.

Item 12. A.25-03-015 (PG&E Revenue Requirement to Support Extended Operation of Diablo Canyon Power Plant)

This decision approves PG&E’s 2026 Diablo Canyon Power Plant extended operations revenue requirement of $382.233 million.  The revenue requirement is allocated to PG&E, SCE, and SDG&E using the allocation factors 44.19 percent, 45.86 percent, and 9.95 percent, respectively.  Signed, D.25-12-007.

Item 13. Res 5429 (PG&E Contract Termination Agreements Request with Solar Partners II and Solar Partners VIII)

This resolution rejects PG&E’s contract termination agreements with Solar Partners II and Solar Partners VIII (collectively, Solar Partners), owners of the Ivanpah Solar Electric Generating Station where PG&E compensates Solar Partners in exchange for terminating their existing Power Purchase Agreements.  Approved.

Item 14. A.25-05-012 (SDG&E’s 2026 Electric Procurement Revenue Requirement Forecasts)

This decision approves SDG&E’s 2026 Electric Procurement Revenue Requirement Forecasts, 2026 Electric Sales Forecast, and GHG Related Forecasts for inclusion in its retail rates effective January 1, 2026.  The decision adopts SDG&E’s updated 2026 revenue requirement forecast of $824.1 million, which is $701.8 million higher than its currently effective revenue requirement of $122.3 million.  The 2025 forecast revenue requirement authorized in D.24-12-040 is significantly lower primarily due to the application of investment tax credits and changes in market price benchmarks in comparison to the 2026 forecast.  In total, the adopted revenue requirement is projected to result in an increase to the current system average bundled rate by approximately 3.7 cents per kWh, or 10.1 percent.  Based on these numbers, and reflective of the Energy Resource Recovery Account-related portion of costs only, it is projected that a typical bundled non-California Alternate Rates for Energy (CARE) residential customer using 400 kWh per month can expect to see a monthly bill increase of approximately $23.0, or a 14.3 percent increase (from $163.0 to $186.0).  On the other hand, a typical bundled CARE residential customer using 400 kWh per month can expect to see a monthly bill increase of approximately $17.0 or a 19.1 percent increase (from $89.0 to $106.0).  For unbundled customers, a typical non-CARE residential customer using 400 kWh can expect to see a monthly bill increase of around $29.0 (30.1 percent increase), while a typical unbundled residential CARE customer using 400 kWh can expect to see a monthly bill increase of around $21.0 (44.2 percent increase).  The decision also adopts SDG&E’s Electric Sales Forecast for 2026, GHG Allowance Return Amounts, Power Charge Indifference Adjustment rates, rate components for the Green Tariff Shared Renewables Program, and Modified Cost Allocation Methodology rates.  Signed, D.25-12-008.

Item 24. Res SPD-37 (Undergrounding Distribution Equipment of Large Electrical Corporations)

This resolution refines the Senate Bill (SB) 884 Program: CPUC Guidelines, Program for Expediting the Undergrounding of Distribution Equipment of Large Electrical Corporations, previously adopted in Res SPD-15, issued March 8, 2024.  This resolution aligns the Commission’s program with the recently adopted SB 884 10-Year Electrical Undergrounding Plan Guidelines of the Office of Energy Infrastructure Safety.  Approved.

Upcoming Workshops and Events

High Distributed Energy Resources (DER) Proceeding – Integration Capacity Analysis (ICA) Workshop

Commission staff will host the Fourth Quarter ICA Workshop (required pursuant to D.24-10-030) on Wednesday, December 17, 2025 from 9:00 a.m. to 12:00 p.m. PT.  The workshop will include utility presentations on ICA remediation plans, timelines, and progress updates, along with an overview from the Energy Division and an opportunity for stakeholder input.  Workshop registration is available here and questions can be directed to the CPUC’s Grid Planning department (raymond.breault@cpuc.ca.gov).

Decarbonization Workshop on Assembly Bill (AB) 2109

The CPUC’s Energy Division will host a workshop on December 12, 2025 from 9:00 a.m. -1:00 p.m. PT to discuss tariff design issues for eligible large customers and other aspects of AB 2109 implementation.  The workshop will be held via WebEx (link here) and the Webinar number is 2482 009 1432.

CALIFORNIA ENERGY COMMISSION (CEC)

2025 Integrated Energy Policy Report (IEPR)

The CEC will hold a remote access workshop on December 17, 2025 from 9:00 a.m. to 12:00 p.m. PT to discuss energy demand forecast results.   According to the workshop notice, “CEC staff will present the results of the annual electricity and gas demand forecasts and the hourly and peak demand forecast components of the 2025 California Energy Demand Forecast” as well as “electricity results through 2045 for the combination of scenarios proposed for the planning forecast and local reliability scenario.”  Lastly, “[g]as impacts will be presented for a range of additional achievable scenarios.” Written comments are due to Docket Number (No.) 25-IEPR-03 by 5:00 p.m. PT on December 31, 2025.

AB 3 - California Offshore Wind Advancement Act

CEC staff hosted workshops on November 13, 2025 and November 14, 2025 regarding offshore wind seaport readiness.  According to the Notice, CEC staff was scheduled to provide an overview of AB 3 and summarize progress made to meet AB 3 requirements.  A detailed meeting schedule is available at Docket No. 25-AB-03.

As background, AB 3 requires the CEC to prepare and submit two reports to the Governor and Legislature, in consultation with various state agencies, including the California State Lands Commission, California Coastal Commission, California Workforce Development Board, Ocean Protection Council, California Department of Fish and Wildlife, Governor’s Office of Business and Economic Development, Governor’s Office of Land Use and Climate Innovation (formerly Office of Planning and Research), and others.

• Report 1 is a second-phase plan for seaport readiness due by December 31, 2026 (Cal. Pub. Res. Code § 25991.8).
• Report 2 is a feasibility study of achieving 50 percent and 65 percent in-state assembly and manufacturing of offshore wind energy projects due by December 31, 2027 (Cal. Pub. Res. Code § 25991.9).

Each of the upcoming workshops has its own event page (linked above) with remote attendance instructions and a link to the workshop notice and agenda.  Written comments are due to Docket No. 25-AB-03 by 5:00 p.m. PT on December 19, 2025.

Renewables Portfolio Standard Eligibility Guidebook (10th Edition)

The CEC announced it will consider adopting revisions to the Renewables Portfolio Standard (RPS) Eligibility Guidebook (RPS Guidebook) 10th Edition at its December 19, 2025 Business Meeting.  The RPS Guidebook, currently in its Ninth Edition, describes the eligibility requirements and process for certifying facilities as RPS-eligible and the rules and process for verifying renewable energy certificates for compliance with California’s RPS program.  The RPS Guidebook is revised periodically to reflect statutory, market, and regulatory developments, as appropriate.

On May 21, 2025, the CEC conducted a public workshop to present potential revisions of the RPS Guidebook and accept public comments.  Following that meeting, a draft of the RPS Guidebook 10th Edition was released on September 17, 2025.  Following its release, the CEC held another public workshop on October 6, 2025, to receive public comments on the draft RPS Guidebook 10th Edition.  The CEC also received written comments following both workshops.  On December 8, 2025, the CEC made available a revised draft of the RPS Guidebook 10th Edition, which will be presented at the CEC’s December 19 business meeting for consideration of adoption.  Versions of the revised draft RPS Guidebook 10th Edition (both clean and redline) are now available in Docket No. 21-RPS-02.

Fuels Advisory Committee

On December 9, 2025, the CEC hosted a meeting of the Independent Consumer Fuels Advisory Committee (ICFAC) to review and discuss the petroleum supply stabilization strategies and other petroleum-focused efforts and to receive any initial feedback from the ICFAC members on implementation.  Additional information, including meeting access information and the agenda, is available on the event page.

CEC Business Meetings

The next CEC Business Meeting is scheduled for December 19, 2025.

CALIFORNIA AIR RESOURCES BOARD (CARB)

Climate Risk Disclosure Laws Update

On November 18, 2025, the Ninth Circuit Court of Appeals issued an order in Chamber of Commerce v. Sanchez, Case No. 25-5327 (9th Cir. 2025), granting an injunction against the enforcement of SB 261 during the pendency of appellate proceedings in that matter.  This injunction applies solely to SB 261.  SB 253 remains in effect and is not impacted by this order.  Argument in that appeal is set for January 9, 2026, after the January 1, 2026 reporting deadline set by Health and Safety Code section 38533.  In light of the Court’s order, CARB will not enforce section 38533 against covered entities for failing to post and submit reports by the January 1, 2026 statutory deadline, as provided in CARB’s enforcement advisory with guidance to stakeholders.  This decision follows an emergency application from several groups to the U.S. Supreme Court seeking to halt enforcement of both SB 261 and SB 253 while their Ninth Circuit appeal proceeds.  The injunction will remain in effect until either the Ninth Circuit rules on the merits of the appeal from the district court or the U.S. Supreme Court acts on the emergency application.

Meetings, Workshops, and Opportunities for Public Comment

On December 9, 2025, CARB will hold a virtual public information session to discuss a new voluntary, non-monetary incentive initiative, called the Clean Fleet Connect tool, which will recognize fleets using medium- and heavy-duty zero-emission vehicles in California.  It is intended to highlight companies that voluntarily choose to “align with the state’s zero-emission goals” and does not establish any new regulatory requirements.

CARB is proposing 2025 Amendments to the Area Designations for State Ambient Air Quality Standards.  Written comments on the proposed 2025 Amendments must be received by January 12, 2026 to be considered.  A public hearing is not currently scheduled; however, interested members of the public may request a public hearing on this item.

CARB is opening a public process to solicit feedback to inform implementation of annual GHG standards for fuel cell systems connected under the CPUC’s Net Energy Metering (NEM) tariff for fuel cells (CPUC NEMFC).  The CPUC NEMFC was established by AB 1214, modified by AB 1637, and further modified by SB 155.  AB 1637 directed CARB to establish a schedule of GHG emissions standards for connected fuel cells and mandated that connected fuel cells meet the same requirements for criteria pollutants set in CARB’s Distributed Generation Certification Program.  In 2017, CARB adopted the Fuel Cell Net Energy Metering Greenhouse Gas Emission Standards Regulation (Fuel Cell NEM Regulation), which included annual mandatory emissions standards for 2017-2022.  Beyond 2022, the regulation provides that CARB will update the standards every three years using the methodology defined in the regulation.  D.23-11-068 approved a staff proposal that directed modifications to the NEMFC tariffs.  CARB is opening a public process to evaluate new data and, as necessary, update the schedule of annual GHG emission standards set under the Fuel Cell NEM Regulation.  Public comments will be accepted through January 9, 2026.

MINNESOTA PUBLIC UTILITIES COMMISSION (MPUC)

At its December 11, 2025 weekly agenda meeting, the MPUC will consider: (1) adoption of the Administrative Law Judge’s recommendations regarding Dakota Electric Association’s general rate increase (Docket No. E111/GR-24-400), (2) approval of Xcel Energy’s (Xcel) request for reaffirmation of affiliate interest arrangement accounting treatment (Docket No. G002/M-25-259), (3) approval of Xcel’s compliance filing and allowing it to proceed with its Sherco 5MW hydrogen electrolyzer pilot (Docket No. G002/M-23-518), (4) approval of Xcel’s proposed State Energy Policy (SEP) Rider Recovery to establish a baseline for $46.3 million effective January 1, 2026, subject to true-up to actual 2026 expenses (and other SEP Rider-related items) (Docket No. G002/M-25-403), (5) acceptance of Xcel’s application to increase its natural gas rates, and referral of the case to the Court of Administrative Hearings (Docket No. G002/GR-25-356), and (6) approval of Xcel’s proposed new base cost of gas (Docket No. G002/MR-25-357).

PACIFIC NORTHWEST (WUTC, BPA)

Washington Utilities and Transportation Commission (WUTC)

At its December 11, 2025 weekly agenda meeting, the WUTC will discuss PacifiCorp’s revisions to its Tariff WN U-76, which PacifiCorp proposes as the successor to Schedule 135, Net Metering Service (Docket No. UE-250695), and (2) Puget Sound Energy’s (PSE) revisions to its Tariff WN U-60 to propose tariff schedule changes to support PSE's Time-of-Use Tariff Schedule services for certain enrolled customers following the successful completion of the 2-year pilot evaluation period (Docket No. UE-250725), as well as PSE’s Petition for Intent to Deploy a Thermal Energy Network Pilot Project (Docket No. UG-250455).  The full agenda is here.

Bonneville Power Administration (BPA)

On December 15, 2025, BPA will hold a BP-26E pre-proceeding workshop as part of its rate case efforts to update the 2026 Transmission, Ancillary and Control Area Service Rate Schedules and General Rate Schedule Provisions.  Meeting details are here.  Additionally, on December 16, 2025, BPA will host a workshop related to the Post-2028 Residential Exchange Program Residential Purchase and Sale Agreement and Average System Cost Methodology.  Meeting details are here.

Federal Agencies

FEDERAL ENERGY REGULATORY COMMISSION (FERC)

Broadview Solar Appeals Process Ended

Following the D.C. Circuit’s September ruling in Solar Energy Industries Association v. FERC (Broadview Solar), partes opted not to seek panel rehearing or en banc review. The deadline to petition the U.S. Supreme Court for certiorari expired on December 8, 2025, without any petitions for cert filed, thereby ending the potential for appeals of the decision.

In Broadview Solar, the D.C. Circuit upheld FERC’s view that a qualifying facility’s capacity under PURPA is measured by its maximum AC output to the grid rather than by the sum of its DC components. More information on Broadview may be found on our blog here.

FERC Seeks Comment on Streamlining Gas and Hydropower Authorizations

FERC voted on two Notice of Inquiries (NOI) related to streamlining procedures and processes for liquified natural gas (LNG) plants and hydropower facilities.  The first NOI (RM26-2-000) seeks comments on whether and how FERC should establish streamlined procedures for authorizing activities at LNG plants without case-specific authorization orders.  The second NOI (RM26-3-000) seeks comments on what changes FERC should make to streamline its processes for reviewing and authorizing post-licensing activities at hydropower facilities, and whether there are certain activities that can be implemented by licensees without case-specific authorization.  Comments on both NOIs are due 60 days after publication in the Federal Register.

FERC Seeks Comment on Five-Year Index Levels for Interstate Oil Pipeline Rates

FERC confirmed that the index level established in December 2020, which is used to calculate annual charges for interstate oil pipeline rate ceilings, will stay in place through June 30, 2026.  In December 2020, FERC set the index level for the five-year period from July 1, 2021, through June 30, 2026, at Producer Price Index for Finished Goods (PPI-FG) plus 0.78 percent (PPI-FG+0.78%).

FERC also seeks comments on a proposed index level for the five-year period commencing July 1, 2026.  FERC proposes using the PPI-FG minus 1.42 percent as the index level.  Parties have 30 days after the notice of the proposed rule is published in the Federal Register to comment.  Reply comments are due 51 days after publication. 

Independent System Operators (ISO) and Regional Transmission Operators (RTO)

CALIFORNIA INDEPENDENT SYSTEM OPERATOR (CAISO)

Stakeholder Initiatives: Upcoming Meetings and Deadlines

Congestion Revenue Rights Enhancements

CAISO has published a discussion paper on Congestion Revenue Rights Enhancements, available here.

2026 FERC Annual Charges Payment Terms Update

CAISO is providing scheduling coordinators the opportunity to elect to pay the 2026 FERC annual charges on a monthly or annual basis.  Changes to payment terms must be submitted to CAISO by December 16, 2025.  Further information is available here.

Cluster 15 Points of Interconnection Heatmap

CAISO has updated the points of interconnection heatmap to include the Cluster 15 Cluster Study scenario in compliance with CAISO Tariff Appendix KK Section 3.6.  Further information is available here.

Demand and Distributed Energy Market Integration

CAISO has posted the Demand and Distributed Energy Market Integration Discussion Paper (Discussion Paper).  Organizations’ prioritization of problem statements in the Discussion Paper are due December 17, 2025.  Further information is available here.

Storage Design and Modeling

CAISO will host a virtual stakeholder meeting for the Storage Design and Modeling initiative on December 4, 2025.  Three topic groups will be discussed during this meeting: Uplift & Default Energy Bids, Outage Management, and Mixed-Fuel and Distribution-Level Resources.  Further information is available here.

Extended Day-Ahead Market (EDAM) Congestion Revenue Allocation Phase 2 

CAISO will host a hybrid stakeholder call on December 11, 2025 to launch Phase 2 of the EDAM Congestion Revenue Allocation initiative.  Further information is available here.

EDAM Implementation

CAISO will host a virtual EDAM Implementation Workshop on December 15, 2025 to discuss key elements of the Intertie Schedule Modeling implementation details.  Further information is available here.

Day-Ahead Market Enhancements (DAME), EDAM & CAISO Balancing Authority Participation Rules

CAISO rescheduled the settlements training for DAME, EDAM & EDAM CAISO Balancing Authority Participation Rules Continuation training course from December 2, 2025 to December 18, 2025.  This course will offer a continuation settlements-focused training session tailored for Scheduling Coordinators involved in, or impacted by, the upcoming Spring 2026 launches of DAME, EDAM, and EDAM CAISO Balancing Authority Area Participation Rules.  Additional information is available here.

Winter Readiness for Scheduling Coordinators

CAISO will offer a training webinar on December 11, 2025, to review Winter Readiness for Scheduling Coordinators.  This webinar will cover winter events, an overview of Energy Emergency Alerts (EEAs), the current process for enrolling to receive EEAs, and information on CAISO’s communication process during an extreme temperature event.  Further information is available here.

MIDCONTINENT INDEPENDENT SYSTEM OPERATOR (MISO)

MISO Weighs Large Load Interconnection Agreements

MISO’s external affairs team indicated MISO was exploring “zero-injection interconnection agreements” for generators that serve large load customers, such as data centers, and that would connect to the grid without the ability to send power to it.  MISO’s team indicated that under the new Generator Interconnection Agreement, a generator would not have full rights without filing in the traditional, full-length queue.

MISO Declines to Postpone 2025 Interconnection Study Cycle

MISO stated it will not postpone starting its 2025 cycle of generator interconnection requests.  MISO stated it would begin studies of the 2025 cycle on January 5, 2026.  MISO stakeholders had previously requested MISO delay the 2025 cycle to allow MISO to push projects further along that had entered the queue three to four years ago.  MISO indicated it would have had to seek a waiver from FERC to delay studies.

PJM INTERCONNECTION (PJM)

Capacity Market Auction Opened

PJM opened the bidding window for its 2027/2028 Capacity Auction on December 4, 2025.  PJM will close the offer window on December 10, 2025, at 5:00 p.m. E.T.  PJM will report the results on December 17, 2025, after 4:00 p.m. E.T.

Planning Committee Endorses Accreditation Revisions

PJM’s Planning Committee endorsed by acclamation revisions on how DERs would be accredited in PJM’s 2028/2029 Base Residual Auction.  Under the revisions, PJM would make class ratings for DERs based on each resource’s composition rather than for resources as a whole.  Other revisions include the calculation of installed capacity and nameplate capacity values for individual DER components and how PJM would calculate accredited unforced capacity for each resource.

Offline Generation Settlement Proposal

PJM’s Market Implementation Committee proposed a “quick fix” to improve settlement methodology used to identify resources as offline.  Under the quick fix, offline generators that are dispatched as secondary reserves would not receive lost opportunity cost (LOC) credits when they are committed but offline.  PJM would use a resource’s output at the time they are committed to determine if they are offline and thereby set the real-time secondary reserve opportunity cost at zero so that the resource would not be eligible for LOC credits.

FERC Accepts Local Distribution Facility Interconnection Tariff Revisions

FERC accepted PJM’s revisions to Part VIII, Subpart F, section 433 and Part IX, Subpart A of its Open Access Transmission Tariff (OATT) revisions to require that resources, which interconnect to local distribution facilities in order to participate in PJM’s markets, interconnect under state or local interconnection procedures and agreements and execute a pro forma Wholesale Market Participation Agreement for participation in PJM’s wholesale markets.  FERC accepted the submittal, effective in part on December 15, 2025, and in part on April 28, 2026.

FERC Accepts Revisions to Balancing Operating Reserve Credit Rules

FERC accepted PJM’s revisions to its OATT modifying PJM’s balancing operating reserve credit rules, revising how deviations are assessed for calculating deviation charges, and making conforming and clarifying changes.

FERC found that PJM’s proposal to reform its calculation and determination for eligibility for real-time Energy Make Whole credits was just and reasonable as the changes will align the Energy Make Whole credits paid to a generation resource with how closely the resource operates in response to PJM’s commitment and dispatch instructions.  FERC also found that the proposal will likely provide greater transparency to resource owners about the inputs used in the make whole calculation by showing additional costs incurred and missed revenue by not following dispatch instructions.

SOUTHWEST POWER POOL (SPP)

Endorsement of Demand Response and Cost of New Entry Policies

SPP’s Resource Energy and Adequacy Leadership (REAL) team approved two protocol changes for policies related to demand response (DR) and cost of new entry (CONE) values.

The REAL team endorsed a DR policy would incentivize load responsible entities to use qualified non-registered or load-modifying demand response resources to meet demand when peak loads exceeds otherwise qualified resources.  The REAL team also voted to increase the CONE value to $139.85/kW-year for summer 2026.

ISO NEW ENGLAND (ISO-NE)

Multi-Area Reliability Simulation (MARS) Presentation

ISO-NE published the presentation and recording from its second technical session on the General Electric MARS tool, which ISO-NE held on December 1, 2025.  MARS software helps ISO-NE develop its Resource Adequacy Assessment.  The presentation may be found here, and the recording may be found here.

Capacity Auction Reform

The New England Power Pool Participants Committee voted to support the first phase of ISO-NE’s capacity auction reform to transition ISO-NE’s forward capacity auction from being held over three years prior to the commitment period to one month prior.  The reform would also reduce generator deactivation notifications from approximately four years to one year.  ISO-NE’s reforms would take effect for the 2028/2029 capacity auction, and ISO-NE has indicated it plans to file the proposed changes with FERC by the end of 2025.

ELECTRIC RELIABILITY COUNCIL OF TEXAS (ERCOT)

Real-Time Co-Optimization Plus Batteries (RTC+B) Launch

ERCOT on December 5, 2025, launched the first day of RTC+B.  ERCOT stated that the goal of RTC+B is to provide greater flexibility in real time for ERCOT to procure energy and ancillary services and to improve modeling and consideration of batteries.  Training videos on RTC+B may be found here.

ERCOT Innovation Summit

ERCOT noticed its third annual ERCOT Innovation Summit, which will be held March 31, 2026, at the Kalahari Resorts & Conventions in Round Rock, Texas.  ERCOT stated that the summit is part of ERCOT’s strategy to advance grid innovation through its Grid Research, Innovation, and Transformation initiative.  Registration is available for in person attendance and online.

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[1] Per the CPUC’s Rules of Practice and Procedure Rule 14.3, comments on proposed decisions are due 20 days after issuance of the proposed decision, and reply comments are due five days thereafter.  Comments on draft resolutions are due 20 days after the draft resolution appears in the CPUC’s daily calendar, per Rule 14.5.