FERC Meeting Agenda Summaries for May 2024

Building for the Future Through Electric Regional Transmission Planning and Cost Allocation

On April 21, 2022, FERC issued a notice of proposed rulemaking (NOPR) in which it proposed numerous reforms to remedy deficiencies in the Commission's existing regional transmission planning and cost allocation requirements. In particular, FERC proposed to require all public utility transmission providers to (1) conduct long-term regional transmission planning on a sufficiently forward-looking basis to meet transmission needs driven by changes in the resource mix and demand; (2) more fully consider dynamic line ratings and advanced power flow control devices in regional transmission planning processes; (3) seek the agreement of relevant state entities within the transmission planning region regarding the cost allocation method or methods that will apply to transmission facilities selected in the regional transmission plan for purposes of cost allocation through long-term regional transmission planning; (4) adopt enhanced transparency requirements for local transmission planning processes and improve coordination between regional and local transmission planning with the aim of identifying potential opportunities to "right-size" replacement transmission facilities; and (5) revise their existing interregional transmission coordination procedures to reflect the long-term regional transmission planning reforms proposed in the NOPR. In addition, the NOPR would not permit public utility transmission providers to take advantage of the construction-work-in-progress incentive for regional transmission facilities selected for purposes of cost allocation through long-term regional transmission planning and would permit the exercise of federal rights of first refusal for transmission facilities selected in a regional transmission plan for purposes of cost allocation, conditioned on the incumbent transmission provider with the federal right of first refusal for such regional transmission facilities establishing joint ownership of the transmission facilities. Agenda item E-1 may be an order regarding the NOPR.

Applications for Permits to Site Interstate Electric Transmission Facilities

On December 15, 2022, FERC issued a notice of proposed rulemaking in which it proposed to revise its existing regulations governing applications for permits to site electric transmission facilities under section 216 of the Federal Power Act. The proposed amendments are intended to ensure consistency with amendments to section 216 enacted by the Infrastructure Investment and Jobs Act of 2021, modernize certain regulatory requirements, and provide updates and clarifications to make FERC's review of permit applications more efficient, including through concurrent state and federal review of construction permits for new transmission lines, with certain limitations. Additional information about the proposed rulemaking is available through this Update.