THIS WEEK AT A GLANCE
The House was not in session this week, but FERC’s February commission meeting produced significant action. The commission eliminated a 25-year-old Western market price cap, streamlined environmental reviews for hydropower projects, and approved new reliability standards for inverter-based resources. Meanwhile, DOE issued another emergency order to keep a coal plant operational, and closer to home, Puerto Rico’s solar advocates are fighting a proposed 900% increase in residential fixed charges.
PUERTO RICO ENERGY
Solar Advocates Oppose LUMA’s Proposed 900% Fixed Charge Increase
Puerto Rico solar and energy-storage advocates are urging regulators to reject LUMA Energy’s proposal to raise the residential fixed charge from $4 to $40 per month — a 900% increase. Advocates argue this change would violate Section 4(c) of Law 114-2007 by effectively imposing indirect charges on renewable generation, making distributed solar significantly less advantageous for residential customers.
Proponents of the increase argue it is necessary to fund PREPA’s $9 billion debt and pension obligations.
Why This Matters: This fight sits at the intersection of Puerto Rico’s debt crisis, its energy transition, and consumer affordability. A 900% increase in fixed charges would fundamentally alter the economics of residential solar on the island, potentially slowing adoption at a moment when grid resilience is a top federal and local priority. Energy developers, solar installers, and any business operating in Puerto Rico’s electricity market should be watching this proceeding closely.
AGENCY WATCH: FERC & DOE
FERC February Commission Meeting
Date: February 19, 2026
FERC held its monthly commission meeting with several consequential actions:
Western Price Cap Eliminated: FERC rescinded the $1,000/MWh soft price cap for bilateral spot market energy sales in the Western Electricity Coordinating Council (WECC) region. The cap had been in place since 2001. A 2024 court ruling and 2025 investigation led the commission to determine the cap was no longer necessary to ensure just rates. Traders previously required to pay refunds under the cap can now recover those payments.
NEPA Reviews Streamlined: FERC unanimously voted to streamline its National Environmental Policy Act reviews. A proposed rule would expand categorical exclusions to fast-track hydropower license terminations that cause little or no environmental disturbance. A separate order adopts five existing Tennessee Valley Authority categorical exclusions to speed approvals for construction, maintenance, and upgrades at hydropower facilities.
Inverter-Based Resource Standards: FERC approved new data sharing and modeling standards from the North American Electric Reliability Corporation for inverter-based resources — a category that includes solar and battery storage systems increasingly central to grid operations.
Other Actions: The commission partially set aside approval of the Constellation Energy/Calpine Corporation acquisition, dismissed a solar interconnection complaint, and withdrew a proposed oil pipeline policy statement.
Puerto Rico Connection: While none of these orders directly affect Puerto Rico’s markets, the NEPA streamlining and new inverter-based resource standards could inform future federal permitting and reliability practices for the island’s grid, particularly as Puerto Rico expands its solar and battery storage capacity.
DOE Prevents Closure of Michigan Coal Plant
Date: February 17, 2026
Secretary Wright renewed an emergency order preventing the closure of the Campbell coal plant in West Olive, Michigan. The plant was originally scheduled to close on May 31, 2025 — fifteen years before the end of its design life. During Winter Storm Fern (January 21 – February 1), the plant operated at over 650 MW daily. The order runs through May 18, 2026, with DOE citing winter reliability needs and local employment.
This is the second DOE emergency order in two weeks aimed at maintaining grid reliability through dispatchable generation — echoing the same authority used to authorize PREPA’s dispatch of generation units in Puerto Rico.
LOOKING AHEAD
No Energy Subcommittee hearings or markups have been announced for the week of February 23. We continue to monitor for scheduling announcements as the House returns from recess.
On Our Radar:
NEED MORE DETAIL?
Maceira Zayas Law offers in-depth regulatory analysis, legislative tracking, and staff training on federal energy developments affecting Puerto Rico. For questions about any item in this briefing, or to schedule a consultation, contact:
Anthony O. Maceira, Managing Member
amaceira@mzls.com
© 2026 Maceira Zayas Law. All rights reserved. This briefing is provided for informational purposes only and does not constitute legal advice.
