The Federal Energy Regulatory Commission (FERC) issued Order No. 1920 on May 13, 2024, marking a pivotal moment in the evolution of transmission grid planning in the United States. This order aims to expedite the expansion of transmission grids and enhance regional planning strategies to meet growing energy demands and ensure grid reliability in the face of evolving energy landscapes.
Effective from August 12, 2024, Order No. 1920 mandates transmission providers to adopt a comprehensive 20-year planning horizon. This forward-looking approach requires utilities to assess various scenarios that include projected electricity demand, changes in energy resources, technological advancements, and regulatory developments. By embracing a longer planning horizon and periodically revising their strategies every five years, utilities can better anticipate and prepare for future transmission needs, thereby enhancing grid resilience and efficiency.
Furthermore, the order introduces critical revisions to local planning processes to bolster transparency and stakeholder engagement. These enhancements address gaps identified in previous regulatory frameworks, particularly stemming from Order No. 1000 issued in 2011. By fostering more inclusive and transparent planning procedures, FERC aims to ensure that community interests, environmental considerations, and technical feasibility are adequately integrated into the decision-making process for new transmission infrastructure projects.
At its core, FERC's Order No. 1920 emphasizes the need for utilities to conduct rigorous benefits analyses when proposing new transmission projects. These analyses must evaluate seven key benefits, ranging from reliability improvements to cost savings, ensuring that each project provides measurable advantages to consumers and the broader electricity grid. Advanced Transmission Technologies, such as CTC Global's ACCC® Conductor, are highlighted as pivotal in increasing transmission capacity, optimizing transmission efficiency and reliability, and reducing line sag, aligning with FERC's objectives to modernize grid infrastructure and mitigate operational challenges.
Order No. 1920 builds upon a series of previous regulatory frameworks, including Orders 888, 890, and 1000, which collectively aimed to address evolving energy needs and grid reliability challenges over the past decades. This latest iteration of regulatory policy reflects extensive stakeholder feedback and technical assessments, integrating lessons learned from past implementation efforts to craft a more robust framework for future grid development.
FERC's issuance of Order No. 1920 represents a significant milestone in the trajectory of transmission grid planning and regulation in the United States. By setting forth clear guidelines for long-term planning, benefits analysis, and stakeholder engagement, the order seeks to foster a more resilient, efficient, and transparent electricity transmission infrastructure. Moving forward, utilities face the task of submitting comprehensive compliance filings by June 12, 2025, while potentially seeking extensions pending rehearing decisions, underscoring the ongoing evolution and adaptation of regulatory frameworks to meet emerging challenges in the energy sector.
Looking Ahead:
Following the issuance of FERC Order No. 1920, utilities must undertake several critical policy efforts to ensure its full implementation and effectiveness. This includes not only submitting detailed compliance filings that outline adjustments to transmission planning processes but also actively integrating advanced transmission technologies like the ACCC® Conductor into their infrastructure strategies. The adoption of transparent cost allocation methods for new transmission facilities, along with improved coordination between regional planning and generator interconnection processes, will be essential to addressing unresolved network upgrade needs efficiently.
Enhanced stakeholder engagement remains paramount to uphold transparency and public trust throughout the planning and implementation phases. As utilities and regulatory bodies navigate these complexities at both state and federal levels, close coordination and collaboration will be crucial to resolving potential conflicts and ensuring alignment with broader energy policy objectives. Establishing robust monitoring and reporting mechanisms will further facilitate ongoing assessment and refinement of transmission planning efforts, promoting adaptive responses to evolving regulatory and market conditions.
Ultimately, continuous improvement in transmission planning processes is essential to meet the evolving needs of consumers, enhance grid reliability, and support the transition to a more sustainable energy future. By embracing the principles outlined in FERC Order No. 1920, stakeholders can collectively advance the resilience, efficiency, and reliability of the nation's electricity transmission infrastructure, paving the way for a more secure and sustainable energy landscape in the decades to come.