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ARTICLE · 03 AUGUST 2011

FERC Issues Final Rule On Transmission Planning And Cost Allocation Requirements

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On July 21, 2011, the Federal Energy Regulatory Commission (FERC) issued Order No. 1000, a Final Rulemaking that amends the transmission planning and cost allocation requirements previously established in Order No. 890.

United StatesEnergy and Natural Resources
Loeb & Loeb'S Energy Practice Group
Loeb & Loeb'S Energy Practice Group

Introduction

On July 21, 2011, the Federal Energy Regulatory Commission (FERC) issued Order No. 1000, a Final Rulemaking that amends the transmission planning and cost allocation requirements previously established in Order No. 890.1 In more than 600 pages, FERC adopted requirements that it hopes will have the effect of opening transmission development to competition from independent developers. The Final Rule is already drawing substantial criticism and will likely be subject to rehearing and appeal.

FERC's stated purpose for this rulemaking was to ensure that jurisdictional transmission services are "provided at just and reasonable rates and on a basis that is just and reasonable and not unduly discriminatory or preferential." The Final Order enacts four requirements in pursuit of this goal:

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