New FERC Electric Regional Transmission Rule: Framework for Long-Term Planning and Cost Allocation

The energy transmission grid is part of an energy system undergoing significant changes. Among these are an unprecedented surge in demand for electricity driven by the electrification of the economy, manufacturing and data use, and the need to interconnect significant quantities of new resources, most of them renewable and intermittent in nature.

In response to these and other challenges, on 13 May 2024, FERC issued its final rule, which it designated Order No. 1920. The final rule aims to overhaul the existing rules for regional transmission planning and cost allocation.

The rule adopts requirements for transmission providers to conduct long-term planning for regional transmission facilities and determine how to pay for them. It also requires transmission operators to conduct long-term transmission planning over an at least 20-year time horizon at least every five years.

Listen as this panel discusses key elements of the final rule, its implications for regional transmission planning, cost allocation, states' involvement, and more.