On July 21, 2011, the Federal Energy Regulatory Commission (FERC) issued Order No. 1000,i amending the transmission planning and cost allocation requirements established in Order No. 890ii to ensure just and reasonable, and non-discriminatory transmission rates and access. Order No. 1000 finds that although transmission planning processes have seen “substantial improvements, particularly at the regional level, in the relatively short time since the issuance of Order No. 890,” existing regulations “provide an inadequate foundation for public utility transmission providers to address the challenges they are currently facing or will face in the near future.”iii In particular, FERC explains that regulations ensuring efficient and cost effective investment decisions are necessary at this time because changes in generation mix are driving the demand for additional investment in transmission.

Order No. 1000 mandates a number of reforms, including the establishment of a regional transmission planning process, inter-regional transmission coordination requirements, elimination of the federal right of first refusal, and the issuance of cost allocation guidelines, each of which is intended to address a current deficiency in FERC’s existing requirements.

Please see full Alert below for further information.