FERC, NARUC Announce Joint Task Force to Address Electric Transmission Issues

The Federal Energy Regulatory Commission (FERC) and the National Association of Regulatory Utility Commissioners (NARUC) have formed a joint-federal state task force to explore transmission-related issues. The first-of-its-kind task force will identify barriers inhibiting planning and development of transmission infrastructure, which is key to facilitating the transition towards clean energy resources, and potential solutions to overcome them.

The task force will explore ways to develop the transmission necessary to meet state and federal goals and seek to review FERC rules and regulations regarding cost allocation to provide recommendations for reforms. Further, the task force will promote regional cooperation by exploring opportunities for states to coordinate, identify, and plan transmission solutions, allowing states also to use FERC jurisdiction planning processes.

FERC issued a draft policy statement regarding state efforts to develop transmission projects through voluntary agreements. The agency said that such agreements can further its priority for cost-effective and reliable facilities, allowing states to advance projects that are not being developed under the regional planning processes required by FERC Order No. 1000. The statement notes that, if states, public utility transmission providers, or stakeholders believe that the ensuing tariffs pose barriers to state efforts with regard to voluntary agreements, FERC will consider measures to remove or address those barriers.

NARUC will nominate representatives from up to 10 state commissions to join the task force. The representatives will serve one-year terms. Two of the representatives will be from each NARUC region, recognizing the varied perception of transmission-related issues across the country. Discussions will be held regarding approaches to enhance transparency and improve oversight of transmission investment including, potentially, through enhanced federal-state coordination.

The development of new transmission infrastructure has multi-facilitated effects, including in terms of reliability, customer protection, and environmental issues. The task force will hold multiple formal meetings annually and allow for public comment, with the first meeting expected to be held during the Fall 2021. Regional meetings may also be convened. The task force will expire in 3 years and can be renewed through agreement from both FERC and NARUC.