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Energy Business
Stephan Heberer
Stephan Heberer
 · Posted in Energy Business

12 Months: Countdown to FERC 881 Deadline

Though it seems like yesterday, the Federal Energy Regulatory Agency (FERC) approved Order 881 two and a half years ago. On July 12, 2024, we will begin a one-year countdown to the deadline for compliance.  The Federal Energy Regulatory Commission (FERC) Order 881, hopes to squeeze more capacity from our nation’s existing transmission infrastructure through the implementation of ambient-adjusted ratings (AAR) on transmission lines. The July 12, 2025, compliance deadline is behind a new urgency to implement AAR for many utilities and transmission service providers.

Beyond efficiency, capacity, and safety, FERC 881 can increase the availability of clean energy resources to meet increasing demand across the nation. As utilities and transmission service providers comply with the order, there is potential to ease the interconnection backlog of clean power generation and storage resources that are awaiting more grid capacity. According to Lawrence National Laboratory, the interconnection backlog reached nearly 2600 gigawatts[1] of clean energy generation and storage at the end of 2023, more than any previous year. And it’s not slowing down.

Urgency is not only driven by compliance with FERC 881, but also the hope of optimizing the existing energy grid and extending its life while doing the planet a big favor by bringing more clean energy online.

 

FERC 881: Quick Review

FERC Order 881 requires transmission service providers, transmission owners, and system operators to adopt accurate and dynamic methods of transmission line ratings, that can be adjusted hourly. Specifically, FERC 881 requires ambient adjusted ratings (AAR) and improved procedures to increase capacity. It outlines the following four factors of compliance:

  1. Ambient Adjusted Ratings (AAR): FERC 881 requires AAR for all lines affected by air temperature. Transmission providers are required to implement AAR and seasonal ratings for short-term transmission service requests (within 10 days), and seasonal ratings for longer-term transmission service requests.
  1. Hourly Updates: Service providers must establish systems and procedures that enable incorporation of data and dynamic line ratings from sensors. Transmission providers are required to electronically update transmission line ratings hourly and estimates for ten consecutive days in the future.
  1. Reporting: Transmission providers are required to maintain a database of each line rating and its rating methodology on a password-protected website or its Open Access Same-Time Information System (OASIS) account.
  1. Emergency Ratings: Transmission providers must also establish contingency ratings for use in emergency situations.

 

Utilities Should Consider Both AAR and DLR to Achieve FERC 881Compliance

Before dynamic line rating methodologies such as Ambient Adjusted Ratings (AAR) and Dynamic Line Ratings (DLR) were widely available, the industry relied on Static Line Ratings to calculate transmission line capacity. But, because static ratings rely on area weather data, they fail to factor in real-time variances in wind speed, solar radiation, or current weather conditions.  These factors dramatically affect the actual capacity of transmission lines, and often leave significant capacity unused.  More precise ratings, which consider real-world environmental variations, can be achieved with AAR, DLR, or a combination of the two, leaving utilities to decide their path forward, and the best mix of solutions.

Ambient Adjusted Rating (AAR) is a software-only solution that calculates line capacity daily or hourly using ambient temperature models. AAR relies on ambient temperature, presence of solar radiation, conductor type, and a pre-established maximum operating temperature.  AAR models use local weather station data to make assumptions about windspeeds. AAR provides a clearer picture of transmission capacity limits than static line rating, and often reveals valuable increases in grid capacity.

Dynamic Line Ratings go one step further. DLR considers real-time data from line sensors that constantly collect real-world, real-time data.  DLR solutions factor-in air temperature, solar radiation, wind speed and direction. With this data, DLR can precisely calculate the effect of critical factors on the transmission line such as conductor temperature and line sag. This crucial, real-time data underpins DLRs ability to reveal transmission line capacity with never-before-seen precision.

Additional benefits include operational and situational awareness via real-time transmission line data that reveals anomalies. DLR adds an extra layer of protection, accuracy, and insight when evaluated against AAR.

 

With 12 months to go, what should utilities do?

As FERC 881 compliance deadlines approach, transmission service providers are under pressure to evaluate and accurately assess existing transmission infrastructure to identify areas that require adjustments. Compliance can be designed in less than six months.  The following is an example timeline:

  • Months 1-2: Evaluate each line on the transmission system to identify the greatest potential for grid capacity and reliability improvement. Select several lines for a pilot program.  
  • Months 1-2: Evaluate DLR and AAR methodologies and vendors.  Select the best option for specific geography, topography, and composition of the transmission lines.
  • Month 3: Select a vendor that can provide an accurate initial evaluation, guidance, support, and a measurable pilot program.  Accurate evaluation of the existing transmission infrastructure is critical for a plan that not only meets FERC 881 compliance, but provides optimal service, cost, efficiency and opportunities for efficiency and ROI in the future.
  • Month 4: Develop a plan to implement DLR, AAR, or a combination including a trusted vendor, budget, timeline, and staffing requirements.
  • Month 4: Communicate with stakeholders including customers, employees, and regulators about plans to implement ARR/DLR or a combination.
  • Month 5-6: Implement AAR/DLR solutions, as appropriate, to achieve FERC 881 compliance.

 

Measuring FERC 881 Compliance Benefits

  • Increased capacity: DLR is projected to increase the known safe capacity of transmission lines, thereby increasing the ability to meet growing demand.  DLR can help service providers prioritize physical grid upgrades. Newly revealed capacity paves the way for interconnection of clean energy sources and allows utilities to meet increasing demand.
  • Improved reliability: Utilities will reduce the impact of outages and blackouts with increased, action-oriented understanding of precise transmission line capacity. With this data, operators can make informed decisions regarding interconnection of additional power generation resources.
  • Reduced costs to consumers: Increased transmission line capacity reduces line congestion and accelerates renewable energy interconnection. Clean energy is a proven source of affordable energy.  

The FERC 881 countdown has begun. In twelve short months, the nation’s transmission infrastructure will be required to consider line data in capacity evaluations.  Utilities must select a partner capable of accelerating both the evaluation and implementation of solutions to meet FERC 881 requirements.  For more information, visit our website.