March 4, 2026

Regulatory Update for March 4, 2026

(Covering February 25, 2026 - March 3, 2026)

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)
• Minnesota Public Utilities Commission (MPUC)
• Pacific Northwest (OPUC, WUTC)
• New York

Federal Regulatory Agencies

• Federal Energy Regulatory Commission (FERC)
• U.S. Department of Energy (DOE)

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

• California Independent System Operator (CAISO)

Click here to download this update as a PDF

State Regulatory Agencies

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

Proposed Decisions (PD) and Resolutions

None to report.

Voting Meeting

The CPUC held a voting meeting in Santa Maria, California, on Thursday, February 26, 2026, at 11:00 a.m. PT.  The energy-related results are below:

Item 2. Res G-3617

This Resolution addresses Southwest Gas AL 1338-G, filed on July 29, 2025, which requests Commission approval of one biomethane procurement contract pursuant to the Renewable Gas Standard, as established in D.22-02-025.  Held to March 19.

Item 4. Application (A.) 21-06-021 (Application of Pacific Gas and Electric Company (PG&E) for Authority, Among Other Things, to Increase Rates and Charges for Electric and Gas Service Effective on January 1, 2023)

This decision closes this proceeding, finding that submission of additional evidence of PG&E’s energization costs to be tracked in its Electric Capacity New Business Interim Memorandum Account was achieved in Rulemaking (R.) 24-01-018 and that any unresolved D.24-07-008 issues can be appropriately addressed in R.24-01-018.  Signed, D.26-02-035.

Item 7. Res E-5446

This Resolution approves two San Diego Gas & Electric Co. (SDG&E) mid-term reliability (MTR) contracts for a total of 92 MW of nameplate capacity.  The contracts are for two power purchase tolling agreements for stand-alone battery storage systems, procured as a result of SDG&E’s Tranche 3 request for offer.  Specifically, the approved contracts include a 44 MW, four-hour battery energy storage system and a 48 MW eight-hour battery energy storage system.  According to the Resolution, SDG&E procured these resources to help meet its MTR requirements.  This Resolution approves the requested relief in AL 4755-E and AL 4755-E-A.  Approved.

Item 8. R.10-05-004 (Order Instituting Rulemaking Regarding Policies, Procedures and Rules for the California Solar Initiative, the Self-Generation Incentive Program and Other Distributed Generation Issues)

This decision denies the Petition for Modification (PFM) of D.11-09-015 filed by Bloom Energy Corp.  The PFM seeks to increase the 25% annual export cap applicable to projects receiving Self-Generation Incentive Program funds.  The decision finds that the PFM provides insufficient justification for why it could not have been filed within one year of the effective date of D.11-09-015 as required by Rule 16.4(d) of the Commission’s Rules of Practice and Procedure.  Signed, D.26-02-036.

Item 14. Res E-5434

This Resolution approves PG&E’s request, with modifications, in AL 7378-E Request for Extension of Time for Phase I and AL 7378-E-A Modification to Phase II Scope regarding Pilot #3, the Vehicle-to-Everything (V2X) Microgrid Pilot.  This Resolution grants PG&E an extension of time for Phase I until June 30, 2026, to complete demonstration activities and data collection.  This Resolution also approves PG&E’s modification of Phase II to a Hybrid Support Model.  Under this model, PG&E will close new participant enrollment, return customer incentives to ratepayers, and provide technical consulting support for V2X readiness at Microgrid Incentive Program sites using non-pilot resources.  Approved.

Item 40. R.25-06-019 (Order Instituting Rulemaking to Continue Oversight of Electric Integrated Resource Planning and Procurement Processes)

This decision requires load-serving entities under the Commission integrated resource planning purview to undertake additional reliability procurement between 2029 and 2032, to pursue any viable projects that can still qualify for federal tax credits or other incentives, as well as to continue the momentum of annual procurement activity that began under the MTR and supplemental MTR requirements in D.21-06-035 and D.23-02-040, respectively.  The new procurement required is 2,000 MW of net qualifying capacity (NQC) by 2030, another 2,000 MW NQC, by 2031, and an additional 2,000 MW NQC by 2032.  This procurement will be generally subject to the same eligibility, compliance and enforcement requirements as the prior MTR orders, including D.25-09-007 provisions and consideration of “good faith efforts” to procure, as described in D.21-06-035.  In addition, at least one-quarter of the procurement by no later than June 1, 2032 is required to come from resources that have attributes that align with clean firm resources (with capacity factors of at least 80 percent and not use-limited) and/or long-duration storage resources (able to discharge for at least eight hours or more).  Signed, D.26-02-057.

Item 41. Investigation 23-03-008 (Order Instituting Investigation on the Commission’s Own Motion into Natural Gas Prices During Winter 2022-2023 and Resulting Impacts to Energy Markets)

This decision determines that the following factors contributed to the 2022-2023 gas price spike: (1) prolonged below-normal temperatures and high precipitation levels; (2) interstate pipeline constraints; (3) reduced natural gas flows from the Permian Basin, Canada, and the Rocky Mountain region; (4) reduced natural gas storage supplies; and (5) events occurring before and during bidweek.  Signed, D.26-02-058.

Upcoming Workshops and Events

Grid Modernization Workshop

Energy Division will be hosting SDG&E’s Grid Modernization Workshop on March 12, 2026 from 1:00 p.m.–3:30 p.m. PT, pursuant to D.18-03-023.  At this workshop, SDG&E will present and lead a discussion on its Grid Modernization Plan ahead of its May 15 Test Year 2028 General Rate Case filing.  The workshop will be held via WebEx and will not have a physical meeting location.  A WebEx access link is available here (Webinar number: #2499 991 4692; Webinar password: tpTBBH9eP83). 

Vehicle Grid Integration (VGI) Forum

The Commission will host a VGI Forum in collaboration with several investor-owned utilities.  The purpose of the forum is to discuss three strategic focus areas for VGI, as identified in D.22-11-040: (1) rates and demand flexibility programs; (2) technology enablement; and (3) planning.  The VGI Forum will feature presentations from stakeholders on the three strategic focus areas as well as discussion to inform on ongoing VGI policy development.  The event will be held both in-person at the CPUC’s San Francisco headquarters, and remotely via WebEx.  Registration details are available here.

CALIFORNIA ENERGY COMMISSION (CEC)

Joint Agency Workshop on 2025 Senate Bill (SB) 100 Results

On February 19, 2026, the CEC, CPUC, and California Air Resources Board hosted a joint two-part workshop to present and discuss the draft electricity resource modeling results and implementation challenges for the SB 100 Joint Agency Report.  Written comments are due by 5:00 p.m. PT on March 5, 2026.

Staff Workshop on Draft Guidelines for the Demand Side Grid Support (DSGS) Program

On February 27, 2026, the CEC issued its Revised Draft DSGS Program Guidelines, Fifth Edition, for public comment.  The Revised Guidelines includes additional modifications to: (1) reflect CEC staff’s current understanding of the funding level available for the 2026 program season, (2) limit battery storage participation eligibility in DSGS to require a permission-to-operate date on or before December 31, 2025, and (3) streamline minimum aggregation size for participation in Option 3 and 4.  A copy of the revised draft guidelines is available here and on Docket No. 22-RENEW-01, here.  A workshop will be held on Monday, March 9, 2026 from 1:30 p.m.–4:00 p.m. PT and written comments are now due by 5:00 p.m. PT on March 16, 2026.

Pre-Application Workshop Announced for National Electric Vehicle Infrastructure (NEVI) – 5th Solicitation

The CEC hosted a pre-application workshop on Wednesday, February 25, 2026 regarding California’s solicitation 5 (South) for funding under the NEVI Formula Program.  A workshop for solicitation 6 (community charging) will be held on March 11, 2026 at 9:30 a.m. PT.  Participation in the workshop is “optional but encouraged” and registration details are available here.

CEC Business Meetings

The next CEC Business Meeting is scheduled for March 12, 2026.  The agenda and supporting materials are available here.

CEC Business Meetings

The next CEC Business Meeting is scheduled for March 12, 2026.  The agenda and supporting materials will be available here ten days prior to the meeting.

MINNESOTA PUBLIC UTILITIES COMMISSION (MPUC)

At its March 5, 2026, weekly agenda meeting, the MPUC will consider: (1) approval of Minnesota Power’s request for its 2025 Rate Adjustment Mechanism under its Rider for Transmission Cost Recovery (TCR) (Docket No. E015/M-24-382); (2) provisional approval of Xcel Energy’s TCR rate effective January 1, 2026 (Docket No. E002/M-25-386); (3) adoption of the Administrative Law Judge’s report and ultimate granting of a site permit for the up-to-100 MW North Star Battery Energy Storage System (BESS) Project in Chisago County (Docket No. IP7155/ESS-25-123); (4) approval of the proposed Panamint – Cottage Grove BESS Power Purchase Agreement (PPA) and authorization for Xcel Energy to recover from Minnesota retail customers the Minnesota jurisdictional portion of the energy costs incurred under the PPA through the Fuel Clause Rider and capacity payments through base rates and the capacity tracker (Docket Nos. E002/RP-24-67, E002/CN-23-212); and (5) approval of Xcel Energy’s 2025 Annual Administrative Service Agreement Petition (Docket No. E002/AI-25-245).

Additionally, Google and Minnesota Power announced that an Electric Service Agreement has been reached for Google to develop a data center in Hermantown, Minnesota, which will be served under an existing regulated rate structure.  Local news coverage is here.  Minnesota Power’s press release is here.

PACIFIC NORTHWEST (OPUC, WUTC)

Oregon Public Utility Commission (OPUC)

On March 3, 2026, the OPUC held a public hearing and commissioner work session regarding PacifiCorp’s affiliated interest with a special purpose entity (the sale-leaseback Boardman to Hemingway Project), wherein OPUC staff has recommended the OPUC approve PacifiCorp’s request to sell and lease-back ownership rights in the Boardman to Hemingway transmission line to BHE B2H, LLC (a wholly owned subsidiary of Berkshire Hathaway Energy) (Docket No. UI 531).  The meeting agenda is here.  Additionally, on March 3, 2026, the OPUC held an informational workshop regarding Cascade Natural Gas Corporation’s proposal for a rate increase, which would increase the amount of money it collects from customers by $16.4M or 15.82 percent.  Through June 15, 2026, the OPUC will accept public comments on the proposed rate increase.  More information is available here.

Washington Utilities and Transportation Commission (WUTC)

The Washington legislature continues to consider a pair of bills, SB 6171 and House Bill (HB) 2515, that would require Emerging Large Energy Use Facilities (ELEUFs) to purchase their energy and pay for needed infrastructure through new tariffs or contracts developed by the state’s utilities.  Under the bills, starting in 2031, ELEUFs commencing operation after July 1, 2026, must certify to the state that 80% of the energy used to serve their load in the prior year came from renewable or non-emitting resources, and that they purchased the electricity and renewable energy certificates to substantiate that certification in a “single transaction.”  The laws require ELEUFs to serve their load using 100% renewable or non-emitting resources beginning in 2036.  There has been no movement on SB 6171 in the Senate.  However, following the Washington Senate Committee on Environment, Energy & Technology’s executive session on February 24, 2026 regarding HB 2515, the bill was referred to the Ways and Means Committee and scheduled for another hearing there on February 27, 2026 (committee materials are here).  Subsequently, an executive session was scheduled on March 2, 2026 involving HB 2515, but no action was taken.

NEW YORK

100+ Groups Send Letter in Favor of NY State Permitting Moratorium

Following the introduction of a bill in the NY Senate that would impose a three-year moratorium on data center permits issued in the state, more than 100 groups sent a letter to Governor Hochul and NY state legislators urging support for the moratorium.

If the legislation passes, in addition to the moratorium, the New York Public Service Commission would be required to issue a report on the rate impact of data centers, and the New York Department of Environmental Conservation would issue a generic environmental impact

Federal Agencies

FEDERAL ENERGY REGULATORY COMMISSION (FERC)

FERC Commissioner David LaCerte Nominated to Full Term

FERC Commissioner David LaCerte testified before the Senate Energy and Natural Resources Committee on February 25, 2025, regarding his nomination to serve a full term as Commissioner.  The Senate previously confirmed LaCerte to finish former Commissioner Willie Phillips’ term, which ends on June 30, 2026.  If confirmed, LaCerte would serve a term that ends on June 30, 2031.

February 2026 Commission Meeting

FERC held its February 2026 Commission meeting on February 19, 2026, which covered administrative, electric, gas, and hydro matters on its docket, including the below order on qualifying facilities (QFs).

Order on QF Recertification Delays

FERC issued an order in Branch Street Solar Partners, LLC, addressing a rehearing and clarification request filed by several solar QFs whose owners had failed to timely recertify their facilities after changes in ownership.  FERC determined that because the QF recertifications for these projects did not occur until months or years after the ownership changes, the facilities’ prior QF certifications “may no longer be relied upon,” and therefore FERC no longer considered the companies to be QFs during the interim period, triggering refunds for violating federal law.  More on this order may be found on our client alert here.

Staff Report on Interregional Transfer Capability

FERC submitted to Congress a staff report on the North American Reliability Corporation Interregional Transfer Capability (ITC) Study.  The ITC Study identifies opportunities to strengthen connections between neighboring regions to improve energy adequacy and optimize operating reserves through increased transfer capability.  The staff report found studying the need for more interregional transfer capability could be beneficial and noted that the ITC Study is not a recommendation for transmission development and other solutions exist to meet future reliability needs.

U.S. DEPARTMENT OF ENERGY (DOE)

Congressional Report on DOE Emergency Authorization Authority

The Congressional Research Service (CRS) released a report on the DOE’s Emergency Authority under the section 202(c) Federal Power Act to keep generators running.  The report notes that “actions by the Trump Administration have highlighted this authority and raised questions about its future implementation.”  In its report, CRS noted that DOE issued three emergency orders in May 2025, all of which involved new interpretations of section 202(c).  CRS also found that it did not appear that relevant grid operators had requested the emergency orders that were issued for the retirement of coal plants and that it was unclear to CRS how costs would be recovered for the coal plants kept online.  CRS concluded Congress could consider whether amendments to section 202(c) of the Federal Power Act are appropriate.

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

CALIFORNIA INDEPENDENT SYSTEM OPERATOR (CAISO)

Stakeholder Initiatives: Upcoming Meetings and Deadlines

2027 and 2031 Local Capacity Technical Study Draft Results

The CAISO will hold a stakeholder call on March 9, 2026, to present and discuss the draft 2027 and 2031 local capacity technical study results.  The presentation and the draft study results will be posted on March 9, 2026 and can be found here.  Written comments on the stakeholder discussion are due by the end of the day on March 23, 2026.  The meeting details can be found here.

Western Energy Markets (WEM) Governing Body, Joint ISO Board of Governors, and Department of Market Monitoring Committee Meetings

The CAISO is hosting these meetings on March 3-6, 2026.  Public comments may be provided to the CAISO Board of Governors and the WEM Governing Body during the noticed meetings.  Details for all the meetings can be found here.

Resource Adequacy Modeling and Program Design Working Group

The CAISO hosted a virtual meeting for the Resource Adequacy Modeling and Program Design working group on March 2, 2026, to discuss track 2 Resource Adequacy Availability Incentive Mechanism reform options.  Written comments on the working group meeting are due by the end of the day March 16, 2026.  The meeting details can be found here.

WEM Regional Issues Forum

The WEM Regional Issues Forum’s hybrid in-person/virtual meeting will take place at the CAISO in Folsom, California, on March 16, 2026.  The discussion is focused on the CAISO’s 2026 Market Policy Initiative Catalog and Roadmap Process.  Registration details can be found here.

Demand and Distributed Energy Market Integration (DDEMI) Meeting

The CAISO will host a virtual stakeholder meeting for the DDEMI initiative on March 13, 2026.  The meeting details can be found here.

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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.