FERC Proposes New Policy Restricting Third-Party Use Of Interconnection Facilities

On May 15, 2014, the Federal Energy Regulatory Commission (FERC) proposed new rules and policies that would make it easier for the developers of non-utility transmission lines that connect their power projects to the grid to avoid having to offer unused capacity on those lines to third parties, and instead to reserve that capacity for their own future use.  When non-utility generators build new power plants, they ordinarily construct and own new interconnecting power lines – called "gen-tie lines" and related equipment, such as substations, collectively referred to as "Interconnection Customer's Interconnection Facilities" (ICIFs) in FERC parlence.  In many instances, these gen-tie lines are a few hundred feet, but for solar, wind and geothermal plants, which are often located in less populated areas, they can extend dozens or even hundreds of miles.