FERC Proposes Significant Transmission Planning and Cost Allocation Reforms

On June 17, 2010, the Federal Energy Regulatory Commission (FERC or Commission) issued a notice of proposed rulemaking (NOPR) that would amend its requirements for transmission planning and cost allocation. In this NOPR, FERC seeks to address perceived deficiencies in its transmission planning process and cost allocation requirements that may have inhibited the development of new transmission facilities. The NOPR comes against the backdrop of congressional efforts to pass a comprehensive energy bill prior to the November elections, the enactment of state and federal policies designed to promote increased use of renewable resources and "smart grid" technology, and a perceived need for significant transmission investment nation-wide. Comments on the NOPR are due 60 days after publication in the Federal Register, which will be sometime in mid- to late August.