On November 21, 2024, the Federal Energy Regulatory Commission (FERC) issued Order No. 1920-A clarifying and modifying its landmark May 13, 2024, Order No. 1920 regulating the long-term planning of regional transmission facilities. Order No. 1920 as issued contains these major elements:
Requirement to conduct and periodically update long-term transmission planning to anticipate future needs.
Requirement to consider a broad set of benefits when planning new facilities.
Requirement to identify opportunities to modify in-kind replacement of existing transmission facilities to increase their transfer capability, known as “right-sizing.”
Customers pay only for projects from which they benefit.
Expansion of states’ pivotal roles throughout the process of planning, selecting, and determining how to pay for transmission facilities.
Order No. 1920-A largely affirms the Order No. 1920. However, Order No. 1920-A expands the ability of state regulators to participate in long-term regional transmission planning processes, especially their role in shaping scenario development and cost allocation. Order No. 1920-A 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.
Please note that Order Nos. 1920 and 1920-A have been appealed by various parties to the United States Court of Appeals for the Fourth Circuit. The appeals are pending.
FERC News Release Regarding Order No. 1920-A:
FERC Order No. 1920-A:
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