FERC Denies NV Energy’s Proposal for Free Interconnection Study Exit
The Federal Energy Regulatory Commission (FERC) denied NV Energy’s proposal for a modification in interconnection processes. This denial was announced on a recent Monday, impacting the utility’s customers seeking to withdraw interconnection requests.
FERC’s Decision on NV Energy’s Proposal
NV Energy sought to allow pending interconnection customers to withdraw their applications without incurring penalties. The proposal associated with changes in clean energy tax credits was backed by industry organizations, including the Solar Energy Industries Association and the Interwest Energy Alliance. They argued this would streamline the interconnection queue by removing projects that are no longer viable.
Reason for Denial
FERC stated the request did not meet the criteria of being “limited in scope.” According to the commission, the waiver would create a new safe harbor process that is not part of the existing tariff, affecting all interconnection customers who had paid a commercial deposit.
Details of the Proposal
- The waiver would have allowed interconnection customers to withdraw requests or terminate agreements within a 60-day period.
- Withdrawal would occur without penalty and customers would receive their commercial deposits back immediately.
FERC noted that the waiver could not be justified as limited, as it would not target a specific group of customers needing relief.
Current Status of NV Energy’s Interconnection Queue
As of October 13, NV Energy had 69 projects in its interconnection queue, totaling around 23.1 gigawatts (GW). Notably, this included:
- Approximately 9.3 GW of solar and battery storage hybrid projects.
- Roughly 3.3 GW from geothermal projects.
At the end of July, NV Energy reported about 17.6 GW in its queue, with only 350 megawatts (MW) linked to geothermal applications. Currently, solar plus storage projects make up about 40% of the queue, while geothermal projects account for 15%.
The rejection of NV Energy’s proposal highlights the challenges utilities face in adapting to evolving energy policies and the complexities involved in interconnection processes.
