Client Alert: FERC Issues Final Rule On How To Plan And Pay For Electricity Transmission

On May 13, 2024, the Federal Energy Regulatory Commission (FERC) issued its long-awaited final rule on regional transmission planning and cost allocation, Order No. 1920. The final rule's release follows a notice-and-comment period that drew over 600 comments from interested parties, amounting to over 30,000 pages from nearly 200 stakeholders—the largest record considered in any FERC proceeding, according to FERC staff.¹

The rule is a hefty 1,300 pages, so this alert highlights select issues of particular importance to market participants and notes the flashpoints of disagreements amongst the commissioners.

Long-Term Regional Transmission Planning

The final rule establishes a long-term planning horizon timeline of 20 years. Transmission providers must conduct this planning at least every five years. This longer planning horizon would be required of all RTOs.