FERC Grid Plan Backtrack Draws Legal Fire Over Cost Allocation Changes

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Initially, FERC commissioners approved the SPP plan in October 2022, a decision that faced challenges in both the D.C. and Eighth Circuits by multiple utilities and stakeholders. However, in July 2023, FERC reversed its decision, prompting lawsuits from Sunflower and Midwest Energy, which have since been consolidated. Numerous entities have stepped in to either support or oppose FERC’s actions.

Stakeholders Push Back Against FERC’s Reversal

Joining Sunflower and Midwest Energy in opposition to FERC’s “Grid Plan Backtrack” are SPP itself, the Kansas Corporation Commission, and Basin Electric Power Cooperative. In a Thursday reply brief, they emphasized that SPP had revised its plan twice to satisfy FERC’s concerns, and that the agency now cannot reject the plan for the same reasons it initially dismissed.

“FERC’s reversal has left SPP and its stakeholders subject to a seemingly endless game of regulatory ‘bring me a rock,'” the intervenors argued. “FERC’s actions are unsupported by the record and contrary to FERC’s own precedents.”

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Legal Perspectives on FERC’s Actions

Helgi C. Walker, Midwest Energy’s lead counsel from Gibson Dunn & Crutcher LLP, maintained that FERC’s original decision to approve the SPP plan was the correct one, and that the agency has failed to provide a sufficient justification for its sudden reversal.