Docket No. RM21-17-001 | Presentation
FERC today largely affirmed its landmark long-term transmission planning rule, Order No. 1920, with modifications that will bolster the ability of state regulators to participate in the long-term regional transmission planning process.
Today’s order responds to requests for rehearing and clarification of Order No. 1920, approved in May 2024, by giving state regulators more opportunities to be involved in the new process of how to plan and pay for transmission facilities in regions throughout the country to power the unprecedented surge in demand for electricity in the coming decades.
“This order builds upon an already strong Order No. 1920 and will further enhance the ability of state regulators to provide their important perspectives on the much-needed new transmission facilities our nation needs to ensure our grid can serve the significant growth in demand for electricity,” FERC Chairman Willie Phillips said. “I applaud my colleagues for helping us achieve this bipartisan, unanimous compromise, which will benefit all Americans.”
Order No. 1920-A largely leaves the original rule intact. It requires transmission providers to conduct long-term planning for regional transmission facilities over a 20-year time horizon to anticipate future needs and to determine how to pay for those transmission facilities. It also provides for cost-effective expansion of transmission that is being replaced, when needed, known as “right-sizing” transmission facilities.
The changes in today’s rehearing order enhance the role of state regulators in the long-term regional transmission planning process, especially their role in shaping scenario development and cost allocation. The order also clarifies that FERC will extend the engagement period for cost allocation discussions for up to six additional months at the request of state regulators.
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