Current Status
On July 15, 2024, the Commission deferred requests to reconsider Order No. 1920. Numerous parties then filed petitions requesting judicial review of the rule. The various petitions were consolidated before the Fourth Circuit by the U.S. Judicial Panel on Multidistrict Litigation. The case is currently being held in abeyance until FERC responds to rehearing requests.
Quick Take
In May 2024, the Federal Energy Regulatory Commission (FERC) issued Order No. 1920. FERC’s rule outlines requirements for new long-term regional transmission planning processes and procedures for developing cost allocation methods that will determine how project costs are shared across each region. Numerous parties petitioned for review in various federal circuit courts. On August 8, 2024, the petitions were consolidated before the Fourth Circuit.
Why it Matters
In Order No. 1920, FERC found that the absence of long-term, forward-looking, and comprehensive transmission planning resulted in insufficient regional transmission development. New transmission had been developed primarily through uncoordinated processes run by individual utilities or in response to requests from power plant developers to connect to the transmission network. As a result, transmission development has been inefficient, and consumers are paying more than is necessary or appropriate to address their transmission needs.
Order No. 1920 directs utilities and Regional Transmission Organizations (RTO) to produce long-term regional transmission plans that consider expected changes in the nation’s power supply mix, demand growth, and extreme weather. Plans must be based on at least three plausible scenarios of the regional power sector’s development. Each transmission project in the plan must pencil out under a benefit-cost test that considers seven benefits of new transmission specified in the rule. Order No. 1920 requires each RTO or other utility alliance to propose to FERC how it will comply with the rule by June 11, 2025.
Timeline
May 13, 2024 The Federal Energy Regulatory Commission published a final rule, “Building the Future Through Electric Regional Transmission Planning and Cost Allocation,” which addresses how transmission providers must conduct long-term regional planning and cost allocation procedures. 89 FR 49280.
July 15, 2024 By operation of law, FERC denied various parties’ request for rehearing of Order No. 1920.
August 8, 2024 Requests for judicial review of Order No. 1920 were consolidated before the Fourth Circuit. Appalachian Voices et al. v. FERC, Case No. 24-1650 (4th Cir.).
August 26, 2024 The Fourth Circuit granted a request from FERC to hold the consolidated cases concerning Order No. 1920 in abeyance until the Commission’s review of the rule is complete. Appalachian Voices v. FERC, No. 24-1650.