FERC Adopts Transmission Planning and Cost Allocation Reforms

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The Federal Energy Regulatory Commission (FERC) has adopted reforms to its transmission planning and cost allocation requirements for public utilities that own and/or operate electric transmission facilities. Order No. 1000, issued on July 21, 2011, seeks to improve the efficiency and cost effectiveness of transmission planning through increased transmission provider participation in regional and interregional coordination efforts, and addresses perceived deficiencies in transmission cost allocation requirements. Order No. 1000 also addresses the “right of first refusal” (ROFR) of incumbent transmission providers to construct and own transmission facilities. All told, Order No. 1000 is a step in the direction of providing greater certainty and removing barriers to the development of transmission needed to ensure continued reliable operation of the transmission system while integrating anticipated large quantities of wind and other renewable energy.

Order No. 1000

Order No. 1000 establishes three transmission planning requirements and three related transmission cost allocation requirements:

Transmission Planning

- Each public utility transmission provider must participate in a regional planning process that complies with the planning process requirements of Order No. 890 and creates a regional transmission plan. FERC also expects non-public utility transmission providers (such as municipal utilities and electric cooperatives) to participate in the regional planning processes.

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