FERC Clarifies Order No. 827

On October 3, 2016, in Docket RM16-1-001, FERC issued an order addressing California Independent System Operator Corp.’s (“CAISO”) request for clarification and, in the alternative, rehearing of FERC’s Final Rule, issued on June 16, 2016 (Order No. 827).  FERC clarified that Order No. 827 does not preclude public utility transmission providers from seeking to define “newly interconnecting non-synchronous generator” as including repowering of an existing generator.  However, FERC declined to grant CAISO’s request that that any repowering of an existing generator that requires new inverters and an interconnection study constitutes a “newly interconnecting non-synchronous generator.”  Instead, attempts to create such a definition require the filing of tariff revisions subject to FERC’s review and approval.