FERC Updates Transmission Planning Rule to Expand State Role

The Federal Energy Regulatory Commission has issued an order largely affirming its transmission planning rule, with changes to enhance the ability of state regulators to take part in the planning process. The order is in response to requests for rehearing of the original order – Order No. 1920 – adopted in May. The new order also grants the requests of state regulators to extend the engagement duration for cost allocation discussions by up to six additional months.

Order No. 1920-A, which maintains most aspects of the original order, expands opportunities for state regulators to participate in the process of how to plan and pay for transmission facilities. Order 1920 requires regional transmission providers to conduct long-term transmission planning to identify and prepare for increasing electricity demand. The advanced planning would ensure greater grid reliability and reduce service delays due to repairs and maintenance. However, after the original rule was issued, many state regulators and organizations raised concerns over the lack of state input in the transmission planning process.

Under Order 1920, grid operators must perform comprehensive long-term regional transmission planning for a 20-year period. Transmission providers are required to conduct planning every five years, evaluating at least three feasible and diverse long-term scenarios using factors that could affect electricity demand. Long-term planning would look at the impact of drivers such as population growth, extreme weather conditions, data centers, and electric vehicles on load growth. Under the the revised order, states can request transmission providers to examine additional scenarios beyond the three required long-term scenarios.