FERC Issues Final Rule To Prevent Undue Discrimination In Transmission Service

On February 16, 2007, the Federal Energy Regulatory Commission ("Commission" or "FERC") issued Order No. 890, amending Order Nos. 888 and 889 regarding the provision of electric transmission services on a non-discriminatory basis. Order No. 890: (1) strengthens FERC’s pro forma open-access transmission tariff ("OATT") to better achieve its purpose of remedying discrimination; (2) provides greater specificity to facilitate Commission enforcement; and (3) increases the transparency of the rules for planning and use of the transmission system. To accomplish these goals, the Commission adopted several significant provisions, described below.

Order No. 890 requires transmission providers to have a coordinated, open and transparent planning process on both local and regional levels, and to describe that process clearly in their tariffs. Transmission providers must submit a proposal for a coordinated and regional planning process that complies with the 9 planning principles articulated in