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Michael Blackwell

Michael is a regulatory and transactional attorney who represents transmission companies, independent power producers, and utilities. He works collaboratively with clients to obtain necessary permits for large infrastructure projects, successfully complete project transactions and financings, and assess the rights and obligations of participants in organized electricity markets. Michael draws on his background as in-house counsel for a Regional Transmission Organization (RTO) and a power trading firm and is equipped to advise industry clients on numerous aspects of regulatory, financial, and transactional issues affecting the development and optimization of generation and transmission assets.

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On September 4, 2025, the Board of Directors of Southwest Power Pool (SPP), the regional transmission organization (RTO) responsible for much of the central United States, passed Revision Request 696 (RR 696), paving the way for SPP to propose that the Federal Energy Regulatory Commission (FERC) modify SPP’s Open Access Transmission Tariff (Tariff) to create a 90-day path to interconnection for large loads and supporting generation. SPP is expected to file this Tariff change proposal with FERC in the coming weeks. Pending FERC’s decision, SPP aims to administer one of the fastest interconnection study processes in the nation and allow expedited processing of new large loads on the SPP transmission system.

On December 19, 2024, FERC issued a Notice of Proposed Rulemaking (NOPR) to approve the addition of the newly defined term “Ride-through” to the North American Electric Reliability Corporation (NERC) Glossary of Terms and to approve the proposed Protection and Control (PRC) Reliability Standards PRC-024-4 (Frequency and Voltage Protection Settings for Synchronous Generators, Type 1 and 2 Wind Resources, and Synchronous Condensers) and PRC-029-1 (Frequency and Voltage Ride-through Requirements for Inverter-Based Resources (IBR)). According to FERC, these reliability standards are intended to address reliability gaps associated with IBRs tripping or entering momentary cessation in aggregate. The new rules will ensure that IBRs are able to “ride through” frequency and voltage excursions, such as faults on the transmission or sub-transmission system. In the NOPR, FERC seeks comments on the proposed rules and the need for informational filings that would help FERC analyze the impact of proposed exemptions in the rules for certain IBRs.

On June 13, 2024, the Federal Energy Regulatory Commission (FERC) issued an “Order to Show Cause”[1] (Order) under Section 206 of the Federal Power Act to four regional transmission organizations (RTOs) and independent system operators (ISOs). FERC is concerned that the RTOs/ISOs’ open access transmission tariffs (OATT) are unjust, unreasonable, and discriminatory because they allow transmission owners (TOs) to unilaterally elect “TO Initial Funding” (a funding mechanism that allows TOs to fund network upgrade capital costs upfront and then recover those costs from interconnection customers) which FERC believes may create barriers to interconnection and result in discrimination.

FERC is directing the Regional Transmission Operators (RTOs) and Independent System Operators (ISOs) to either show cause as to why their OATTs are just and reasonable or explain what changes they would make to remedy the concerns. The Order acknowledges and discusses the background of the issue, including FERC’s Order No. 2003, which established an interconnection pricing policy that allows RTOs/ISOs to propose alternative pricing mechanisms.

However, FERC is concerned about the potential for discrimination when the transmission provider is not independent. The Order further discusses the different ways that network upgrade costs can be funded in the Midcontinent Independent System Operator (MISO) region, recent case history related to TO Initial Funding, and a number of proceedings related to the issue. The Order also raises concerns about potential discrimination by transmission owners in PJM, Southwest Power Pool (SPP), and ISO New England, as well as questions about whether transmission owners face any uncompensated risks associated with owning, operating, and maintaining network upgrades.

FERC requests the RTOs/ISOs to address these concerns and answer a number of questions related to increased costs and potential discrimination.  Under its Section 206 authority, FERC directs each of the four RTOs/ISOs, within 90 days of the date of the Order (i.e., Wednesday, September 11, 2024), either: (1) to show cause as to why its OATT remains just and reasonable and not unduly discriminatory or preferential and provide responses to the questions set forth in the Order; or (2) to explain what changes to its OATT it believes would remedy the identified concerns if the commission does determine the self funding to be unjust and unreasonable.

The impact of “TO self funding” on generation developers can be substantial. Here is a breakdown of the potential impacts on generation developers:

  • Increased Costs: When transmission owners can pass on the upfront capital costs of network upgrades to generation developers, it significantly increases the cost of connecting to the grid, impacting the financial viability of new generation projects.
  • Barrier to Entry: These additional costs serve as a barrier to entry, particularly for smaller developers or those with more innovative or less capital-intensive technology, impacting resource diversity and competitiveness of the market.
  • Project Delays: Disputes over cost allocations and the process of funding network upgrades lead to project delays, harming generation developers who rely on predictable timelines to plan and execute their projects and secure financing.
  • Financing Challenges: The uncertainty and potential for increased costs associated with network upgrades make it more difficult for generation developers to secure financing, as lenders and investors may see the projects as riskier investments.
  • Operational Risks: Questions raised by FERC about whether transmission owners face any uncompensated risks associated with owning, operating, and maintaining network upgrades might affect terms and conditions of interconnections, potentially passing more risks onto generation developers.
  • Discrimination Concerns: The potential for discriminatory practices by transmission owners could undermine the fair and competitive access to the grid for new generation developers, potentially favoring incumbent players or certain types of generation.

The FERC directive for RTO/ISOs to either justify the fairness of these practices or propose changes is therefore very significant for generation developers, who stand to benefit if the costs and risks associated with network upgrades are distributed more equitably and transparently.

For more information about the Order’s potential impact on your specific situation or to explore the next steps in light of the Order, please contact Michael Blackwell or a member of Husch Blackwell’s Energy Regulation team.

[1] Midcontinent Indep. Sys. Operator, Inc., et al., 187 FERC ¶ 61,170 (2024) (FERC Docket Nos. EL24-80-000, EL24-81-000, EL24-82-000, EL24-83-000).

Last month, Husch Blackwell published its seventh-annual report on public-private partnerships (P3s) and alternative project delivery strategies. This year’s report features an interesting article by Michael Blackwell, an attorney on the firm’s Energy & Natural Resources team, that explores how P3s and P3-like agreements might be deployed to hasten the transition from fossil fuels…

At its May 13, 2024 open meeting the Federal Energy Regulatory Commission (FERC) unanimously approved Order No. 1977,[1] which updates the process FERC uses when exercising its transmission siting authority under Section 216 of the Federal Power Act, as amended by the Infrastructure Investment and Jobs Act of 2021 (IIJA). 

At its May 13, 2024 open meeting, the Federal Energy Regulatory Commission (FERC) approved a groundbreaking final rule—Order No. 1920[1] —requiring public utilities to undertake new long-term regional transmission planning over a 20-year horizon and allocate the cost of selected transmission projects in a manner that corresponds to the benefits they provide. 

The Texas Legislature, primarily responding to the unprecedented ERCOT system load shed event during 2021’s Winter Storm Uri, enacted far-reaching system and wholesale market reforms during its 2021 and 2023 legislative sessions. These reforms broadly seek to bolster electric system resilience and reliability while incentivizing, through wholesale market reforms and other out of market actions…

Earlier this summer, the Federal Energy Regulatory Commission (FERC) introduced a groundbreaking order—Order No. 2023—aimed at reforming the generator interconnection process in response to the evolving landscape of energy resources, market dynamics, and emerging technologies across the nation.

Industry reaction to the substance of the new rules has been mixed, but it is…

distribution electric substation with power lines and transformers

In a forty-page opinion issued by Chief Justice Nathan L. Hecht, the Texas Supreme Court held that the Electric Reliability Council of Texas (“ERCOT”) has sovereign immunity regarding allegations of overpricing during Winter Storm Uri and related fraud claims, even though ERCOT is a private corporation. The Court was split 5-4 in its decision with Justices Boyd and Devine writing in dissent, joined by Justices Lehrmann and Busby.

In a rulemaking issued April 6, 2023, the Public Utility Commission of Texas (“Commission”) adopted amendments to market participant registration and certification requirements.[1] The Commission’s rule amendments significantly change qualification and reporting requirements for Retail Electric Providers (“REP”), Power Generation Companies (“PGC”), Self-Generators, and Power Marketers. This article outlines the most significant of these…