September 16, 2026

Regulatory Update for September 16, 2026

(Covering September 9, 2026 - September 15, 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)
• Pacific Northwest (OPUC, BPA)

Federal Regulatory Agencies

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

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

• California Independent System Operator (CAISO)
• PJM Interconnection LLC (PJM)
• Data Centers

Click here to download this update as a PDF

State Regulatory Agencies

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

Proposed Decisions and Resolutions

None to report.

Voting Meeting

The CPUC will hold a voting meeting on September 17, 2026 in San Marcos, California, at 11 a.m. PT.  The energy-related items on the agenda are below:

Item 2. Resolution E-5455

This Resolution approves Pacific Gas and Electric Company’s (PG&E) Advice Letter (AL) 7785-E, filed on December 18, 2025, requesting Commission approval of an exceptional case agreement between PG&E and Google LLC to support the energization of a new 250-megawatt (MW) transmission-level retail electric load at 230 kilovolts in San Jose, California.  The Resolution approves the AL with modifications, requiring additional ratepayer protections. This item has been held by President Reynolds to the October 8 voting meeting.

Item 8. Resolution E-5475

This Resolution confirms that the Sonrisa project, a 200-MW solar and 184-MW/736 MWh storage facility, contracted by Ava Community Energy (Ava) is a new resource and thus incremental to the baseline list of generators defined in Decision (D.) 21-06-035, following Commission review of the information presented by Ava.  Additionally, this Resolution expands the eligibility requirements for the submission of baseline waiver requests for projects that are included in the baseline list but have not and are unlikely to ever come to fruition and clarifies that Load-Serving Entities may request a Tier 2 waiver by submitting a Tier 2 AL to the Commission.

Item 10. Resolution G-3622

This Resolution approves in part and modifies in part the California Energy Commission’s (CEC’s) ALs 12-G and 10-G-A, filed on August 8, 2025, and October 3, 2025, respectively.  These ALs contain proposed Gas Research, Development, and Demonstration (RD&D) Investment Plans (Gas RD&D Plans or Plans) for Fiscal Years 2024-2025 (the 2024 Plan) and 2025-2026 (the 2025 Plan).  This Resolution approves, in part, the CEC’s Gas RD&D Plans with proposed budgets of $24 million each for its 2024 Plan and its 2025 Plan, totaling $48 million.  This Resolution reviews the CEC’s 2024 Plan and 2025 Plan against a list of consolidated requirements from prior decisions and resolutions.  This Resolution finds that CEC Plan omissions can be remedied with additional information and directs the CEC to submit its revised 2024 and 2025 Gas RD&D Plans via Tier 2 ALs within 90 days.  This item has been held by staff to the October 8 voting meeting.

Item 11. Rulemaking 25-02-005 (Order Instituting Rulemaking to Update and Reform Energy Resource Recovery Account and Power Charge Indifference Adjustment Policies and Processes)

This decision affirms the Commission’s methodology of valuing Renewable Energy Credits generated prior to January 1, 2019, and banked, but used for investor-owned utility (IOU) customer (bundled customer) compliance in later years at zero dollars when calculating PG&E, San Diego Gas & Electric Company (SDG&E), and Southern California Electric Company’s (SCE) Power Charge Indifference Adjustments (PCIA).  The Commission is statutorily mandated to ensure the movement of customers from IOU bundled service to IOU unbundled service does not result in a cost shift between bundled and unbundled customers (departing load).  This obligation is referred to as maintaining customer indifference.  The PCIA is the Commission’s regulatory tool for maintaining indifference between these customer groups.

Item 13. Resolution G-3623

This Resolution 1) denies PG&E’s AL 5196-G with its proposed 2024 Gas RD&D Plan; 2) approves, in part, AL 5197-G with its proposed 2025 Plan; and 3) approves, in part, AL 5222-G with its proposed 2026 Plan.  PG&E’s Gas RD&D Program was established pursuant to D.23-11-069, requiring PG&E to submit an annual Tier 3 AL describing PG&E’s proposed Gas RD&D Plan prior to utilizing authorized funds.  The Commission’s findings are based on review of PG&E’s Gas RD&D requirements.  Specifically, the Commission: 1) denies PG&E’s 2024 Plan with a proposed budget of $1,945,797; 2) approves, in part, PG&E’s 2025 Plan with a proposed budget of $6,700,087 and administrative budget of $670,000; and 3) approves, in part, PG&E’s 2026 Gas RD&D Plan with a proposed budget of $8,267,000 and administrative budget of $826,700. This Resolution authorizes PG&E to record $611,440 in its balancing account for administrative costs incurred in the development of its 2024 Plan and Report pertaining to Commission-required compliance activities.  This Resolution authorizes budgets of $6,133,333 and $7,874,348 for PG&E’s 2025 Plan and 2026 Plan, respectively, including 10% of funds for Program Administration.  The Commission directs PG&E to submit revised 2025 and 2026 Gas RD&D Plans via individual Tier 2 ALs with modifications described in this Resolution and according to the modified budgets outlined in Appendix B of the Resolution.

Item 44. Resolution E-5480

This Resolution adopts, with modifications, the equity metrics proposed by PG&E, SCE, and SDG&E, collectively referred to as the “joint utilities,” to measure equity in each utility’s yearly Distribution Planning and Execution Process (DPEP), pursuant to D.24-10-030.  AL 5498-E contains a joint proposal from PG&E and SCE, and a separate proposal from SDG&E on the information and sources used to measure the equity within each utility’s DPEP.

Events

Avoided Cost Calculator (ACC) Workshop

Energy Division staff hosted a public workshop on the ACC on September 9, 2026, from 1:30 p.m.-4 p.m. PT. The goal of the workshop is to present the 2026 Draft ACC to stakeholders and the public and to provide an opportunity for comment and questions.  The ACC, which is updated biennially, is used to determine the avoided costs incurred by reductions in electricity and gas consumption from distributed energy resources.  It is used to determine the benefits of customer programs that promote distributed energy resources such as energy efficiency and demand response.  Workshop details are available on the Commission’s Daily Calendar.

Interconnection Discussion Forum

Energy Division staff will host the next Interconnection Discussion Forum (IDF) on Tuesday, November 3, 2026 from 1 p.m.-4 p.m. PT.   The IDF provides an informal venue for utilities, developers, and other stakeholders to explore a variety of issues related to interconnection practices and policies.  It is generally scheduled quarterly.  The November IDF meeting will focus on interconnection issues relating to community solar, under both the Wholesale Distribution Access Tariff and Rule 21.  Additional details are available on the Rule 21 website, here.

CALIFORNIA ENERGY COMMISSION (CEC)

2026 Integrated Energy Policy Report (IEPR) Update

The CEC has set the following preliminary schedule for the 2026 IEPR.  The schedule is available on the 2026 IEPR Update page.

Task/Event	Date
• Final 2026 IEPR Update Scoping Order released	April 2026
• Adopt order instituting informational proceeding	May 2026
• Public workshops on specific topics	May–December 2026
• Release draft 2026 IEPR Update	October 2026
• Release proposed 2026 IEPR Update	January 2027
• Adopt 2026 IEPR Forecast	January 2027
• Adopt 2026 IEPR Update	February 2027

• Adopt 2026 IEPR Update February 2027

The CEC’s 2026 IEPR Update workshop schedule (which remains subject to change) is set forth below.  According to the workshop schedule, all workshops will be held via Zoom and the remaining workshops through December 2026 will run as follows:

November 12, 2026: Commissioner Workshop on Load Modifier Draft Results, 10 a.m.–5 p.m. PT.

December 14, 2026: Commissioner Workshop on Overall Forecast Results, 10 a.m.–5 p.m. PT.

Written comments regarding the August 20, 2026 and August 31, 2026 workshops were due to the docket unit by 5:00 p.m. PT on September 15, 2026.

Notice to Amend Electric Vehicle (EV) Charger Reliability Standards

On August 11, 2026, the CEC announced its proposed rulemaking to amend the EV charger data and reliability standards (set forth in Title 20, California Code of Regulations, Division 2, Chapter 12, Article 2) to exempt MW Charging System EV chargers from certain requirements and to provide other “minor refinements” within the regulations.  The CEC will hold a public meeting to consider the proposed regulations on Thursday, September 24, 2026 from 10 a.m. to 1 p.m. PT via Zoom.  Access details and other event information are available here.  Additional information regarding the EV charger data and Reliability Standards is available on the EV Charger Data and Reliability Standards webpage.

Electric Program Investment Charge (EPIC)

The CEC will host its annual EPIC Symposium on September 29, 2026, both in person at the California Natural Resources Agency building at 715 P Street in Sacramento, California and via remote access.  EPIC discussion topics include (1) Optimizing EVs as Grid Assets and (2) Closing the Battery Lifecycle Loop.  Registration is now live and the EPIC Symposium agenda is available here.

Lithium Valley Informational Proceeding

The CEC hosted a remote-access workshop on September 10, 2026 to discuss current opportunities for development of the lithium industry in the Salton Sea region of California.  Additional information regarding the scope of the workshop is available in the workshop notice.  Written comments are due to the docket unit by 5:00 p.m. PT on September 30, 2026.

Wave and Tidal Energy

The CEC released the Draft Senate Bill 605 Wave and Tidal Energy Report to the Governor and Legislature and will be holding a remote-access workshop on September 30, 2026 to present and gather feedback on the draft report.  Written comments on the draft report are due to the docket unit by 5:00 p.m. PT on November 3, 2026.

CEC Business Meetings

The next CEC business meeting is scheduled for October 19, 2026.

PACIFIC NORTHWEST (OPUC, BPA)

Public Utility Commission of Oregon (OPUC)

On September 3, 2026, the OPUC held (1) a public meeting to consider granting PacifiCorp d/b/a Pacific Power’s request for a waiver of OAR 860-089-0250(1) and approving use of PA Consulting as the Independent Evaluator for Phase 2 of PacifiCorp’s 2025 Request for Proposals (Docket No. UM 2383), and (2) a public hearing and commissioner work session to open a formal rulemaking to implement Senate Bill 845, which primarily authorizes OPUC to order the sale of a water utility that is unable to provide safe and adequate service (Docket No. AR 673).  The full agenda is accessible here.

Bonneville Power Administration (BPA)

On August 31, 2026, BPA hosted a BP-26 transmission settlement commitment workshop to discuss (1) the short distance discount and the billing determinant for Network Integration Transmission Service as related to behind-the-meter resources and (2) to provide clarity on the scope, eligibility, and costs of the New Generation Technology Pilot Program.  The settlement is included in the BP-26 Rate Proceeding Administrator’s Final Record of Decision.  More information on the BP-26 rate case is here.  On September 1, 2026, BPA hosted the second workshop in its Risk Mitigation & Financial Policies Refresh series, wherein BPA reviewed the existing 2022 Financial Plan which will culminate in a new financial plan, targeting a 2027 publishing date, to ensure BPA’s long-term financial goals are supported with agile risk mitigation strategy and updated financial policies.  The 2022 Financial Plan is available here.

Also on August 31, 2026, BPA published what it refers to as a refreshed strategic plan to accelerate innovative transmission and power supply solutions to meeting growing demand and expansion in the region.  The plan seeks to protect legacy customers and ratepayers by ensuring that “growth pays for growth.”  The 2026-2030 Strategic Plan is available here.

Lastly, on September 1, 2026, BPA announced a two-week delay in issuing its updated large generator interconnection Phase One Cluster Study Reports.  Those reports—initially targeted for September 11, 2026—will now be issued September 25, 2026.  In addition, BPA will tender Phase Two Cluster Study Agreements on October 9, 2026, for customers who intend to move forward in the interconnection study process.

Federal Agencies

U.S. DEPARTMENT OF ENERGY (DOE)

D.C. Circuit Vacates DOE Emergency Authorization Order

On September 11, the D.C. Circuit vacated a DOE order that DOE issued under its Federal Power Act (FPA) section 202(c)’s emergency power authority, under which DOE ordered a coal plant in Michigan to stay open.  The D.C. Circuit noted that FPA section 202(c) limits emergency authority “to address an identified risk of a substantial energy supply shortfall that calls for immediate action” and that the section is best read where DOE identifies a risk of substantial energy harm from inadequate electricity supply that calls for immediate action by DOE in particular, as opposed to by the states.  The D.C. Circuit noted that DOE in this case did not identify circumstances that warrant section 202(c) usage, that DOE’s order warranted being vacated.

DOE Issues Additional FPA 202(c) Order

Also on September 11, DOE issued another FPA section 202(c) emergency order to keep a coal power plant online in Washington state.  The order calls for TransAlta Centralia Generation Facility’s one remaining coal-fired generation unit to remain operational due to the region’s “elevated risk of insufficient operating reserves during periods of extreme weather.”

FEDERAL ENERGY REGULATORY COMMISSION (FERC)

FERC 2026 Commission Meeting Summary

FERC held its September 2026 Commission Meeting on September 10, 2026.  FERC released orders on the following:

• North American Electric Reliability Corporation’s (NERC) proposed reliability standard (RD26-9-000): This order approved NERC’s proposed physical Reliability Standard CIP-014-4 and the associated implementation plan, violation risk factors, and violation severity levels, as well as the retirement of the currently effective Reliability Standard CIP-014-3. The Physical Security Standard requires applicable transmission owners to perform a periodic risk assessment to identify critical transmission substations, evaluate potential threats and vulnerabilities of a physical attack, and develop a physical security plan to protect critical facilities.
• FERC’s show-cause proceeding against ISO New England, Inc. (ISO-NE) related to ISO-NE’s lack of mechanism to allow ISO-NE to adjust erroneous capacity performance payments (EL26-45-000): This order found ISO-NE’s tariff unjust and unreasonable because it lacks provisions that would enable ISO-NE to accept payments from market participants that were erroneously or improperly received, which yields unjust and unreasonable market outcomes for market participants and customers. ISO-NE must submit a compliance filing within 120 days of the date of the order. 
• Tri-State Generation and Transmission Association, Inc.’s (Tri-State) participation in Southwest Power Pool’s (SPP) expansion into the Western Interconnection (SPP West) (ER20-681-016): The order conditionally accepts Tri-State’s tariff revisions that reflect its participation in the SPP West. The order requires Tri-State to offer its SPP West units at or below each unit’s mitigated energy offer and to submit a compliance filing that provides a horizontal market power analysis of the SPP West market. 
• TransAlta Energy Marketing (U.S.) Inc.’s spot sales above the Western Electricity Coordinating Council (WECC) soft cap (ER23-276-000): This order found under Mobile-Sierra that there is no basis for further FERC action concerning TransAlta Energy Marketing (U.S.) Inc.’s spot market energy sales that exceeded the WECC soft price cap of $1,000/MWh.
• Mercuria Energy America, LLC’s spot sales above the WECC soft cap (ER23-450-000): This order found under Mobile-Sierra that there is no basis for further FERC action concerning Mercuria Energy America, LLC’s spot market energy sales that exceeded the WECC soft price cap of $1,000/MWh.
• Calpine Energy Services, L.P.’ spot sales above the WECC soft cap (ER23-316-000): This order found under Mobile-Sierra that there is no basis for further FERC action concerning Calpine Energy Service, L.P.’s spot market energy sales that exceeded the WECC soft price cap of $1,000/MWh.

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

CALIFORNIA INDEPENDENT SYSTEM OPERATOR (CAISO)

Stakeholder Initiatives: Upcoming Meetings and Deadlines

2027 Default Resource Adequacy Values New Recurring Process

The CAISO held a virtual stakeholder meeting on September 9, 2026, to present the draft default qualifying capacity and default planning reserve margin for the 2027 Resource Adequacy.  This is the first meeting in this new Default Resource Adequacy Values recurring process.  Stakeholder comments are requested by September 23, 2026.  Meeting details can be found here.

2026-2027 Transmission Planning Process (TPP): Meetings

The CAISO will host a virtual public stakeholder meeting on September 23 and 24, 2026, to discuss the preliminary reliability study results, participating transmission owner’s reliability projects, and updates on other analyses related to the 2026-2027 TPP.  The meeting materials can be found on the TPP webpage and meeting access can be found here.

PJM INTERCONNECTION LLC (PJM)

Proposed Large Load FERC Response

In response to FERC’s June 18, 2026 show-cause order that directed PJM to address large load integration, PJM previewed a proposed response to that order.  PJM wrote that it may propose voltage and frequency ride-through requirements for Large Computation Loads with recent large load (data center) load disconnections during and post normal cleared faults and addresses how much power large load may reduce during disturbances.  PJM stated it is targeting November for its proposed revisions.

NEW YORK INDEPENDENT SYSTEM OPERATOR (NYISO)

Proposed Large Load FERC Response

In response to FERC’s June 18, 2026 show-cause order that directed PJM to address large load integration, NYISO previewed a proposed response to that order.  NYISO wrote that it may propose the following:

• Increased readiness obligations for large load projects including application fees, study deposits, and commercial readiness screening;
• An optional pre-application process and mandatory application process;
• Bulk electric large load study process, including a System Impact Study, and assessment of load integration;
• New non-firm withdrawal service for large loads that do not fully mitigate their adverse reliability impacts (including resource adequacy and/or transmission security impacts);
• New concept of partner resources that may mitigate a large load’s adverse impact to resource adequacy;
• Defined processes for evaluating co-located large loads;
• Performance requirements for large loads;
• Modification process for large loads; and
• Project tracking process for large loads.

Data Centers

DATA CENTERS AND LARGE LOADS

Governor Abbott Directs Water Board to Penalize Data Center Failures

Texas Governor Greg Abbott directed the Texas Water Development Board (TWDB) to compel data centers and other major water users to comply with water reporting requirements and to impose legal consequences for both past and future state law compliance failures.  The Governor’s office stated that data centers and other major water users “appear to have committed civil and criminal violations” by failing to provide TWDB with required water usage information.  The Governor’s office also directed TWDB to partner with Electric Reliability Council of Texas on its audit of data centers to seek additional water use information.

Pennsylvania Public Utility Commission (PUC) to Consider Large Load Policies

The Pennsylvania PUC released a motion in which it tasked its Law Bureau and Bureau of Technical Utility Services with drafting a tentative order with proposed amendments and modifications that electric utilities must make to their tariffs to incorporate a pre-emergency condition that implements curtailment protocols for large load customers.  The Pennsylvania PUC stated its motion was in response to Pennsylvania Governor Josh Shapiro’s Executive Order 2026-05, issued on August 18, 2026, which encouraged the Pennsylvania PUC to establish rules, procedures, and orders relating to the curtailment of large loads and the allocation of costs under PJM’s Reliability Backstop Procurement mechanism (which helps large loads procure power).  The Pennsylvania PUC noted the tentative order will be voted on at the October 1, 2026 public meeting with a 30-day comment period and a 15-day reply period, and a final order will be prepared for the January 28, 2027 public meeting directing electric distribution companies to file tariff supplements.  The Pennsylvania PUC also noted that it will host a technical conference this fall to vet issues of cost responsibility in a data center driven world.

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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.