Where wind integration has been most successful, state authorities developed and adopted basic transmission planning and cost allocation principles before ferc issued order. The federal energy regulatory commission ferc regulates natural gas pipeline and electric public utilities that engage in interstate commerce. Ferc order informational seminar minutes 20140311. Ferc order interregional stakeholder meeting 1 december19, 2012. On july 21, 2011, over a year after a notice of proposed rulemaking was released, the federal energy regulatory commission commission issued order no. Ferc order 2004 standards of conduct for transmission providers national grid. The federal energy regulatory commission ferc on march 19, 2020 announced a notice of proposed rulemaking nopriiferc docket rm200.
On february 21, 20, ferc issued the first two orders concerning order no. This article provides a brief summary of ferc order as it relates to the issues of public policy benefits and cost allocation. In may 2015, iso new england began implementing changes to the regional and interregional transmission planning process to comply with the directives in order no. Ferc order transmission planning and cost allocation frcc board briefing june 28, 2012. Ferc order informational seminar march 11, 2014 conference call web conference m i n u t e s goal of meeting. Irrespective of whether there is order cost allocation, each regional process will decide what is the right solution to meet its needs, regardless of whether it. Order compliance filings regional compliance filing oct 11, 2012.
Power engineers is a global consulting engineering firm specializing in the delivery of integrated solutions in a wide range of industries. Order is seen by many as landmark energy legislation addressing both the transmissionplanning process and costallocation procedures for new electrical transmission lines. The purpose of this meeting was to serve as an informative call for interested parties regarding ferc order. Its most recent, order , has an air of finality that represents the closing of an era for the commission as much as it does the beginning of one for the industry. Yadkin for failing to form a compliant transmission planning region. The federal energy regulatory commission ferc introduced order in july 2011 and reaffirmed it in may and october 2012 with orders a and b. If you would like to conduct your own search of the cfr you can access the governmental printing organizationnational archives and records administration website. Columbiagrid interregional coordination information package. Ferc succeeds with the former but not necessarily with the latter. A public utility transmission provider that is a member of an rto or iso will satisfy this compliance filing requirement through its rto or iso, which must file. Why ferc order is a big deal in the electric industry. Ferc regulates, monitors and investigates electricity, natural gas, hydropower, oil matters, natural gas pipelines, lng terminals, hydroelectric dams, electric.
Transmission facilities that meet the spp tariffs attachment y, section i. This incompleteness produces uncertainties, over how the fercnarrowed rofr will affect regional processes. Of the various policies being considered by the federal energy regulatory commission ferc this year, there is one in particular that deserves the. This complimentary white paper addresses the objectives of order no. Tomain, the past and future of electricity regulation, 32 envtl. The implications of including this new category of benefits is uncertain and will be influenced by the actual compliance tariff filings and the inevitable law suits. A comprehensive listing of the commissions rulemaking proceedings can be found at. Rourke vice president, system planning isone public 2 a lengthy process for the policy to emerge policy development and approval under ferc order took place over a sixyear period. A and the impact it will have on transmission providers efforts to comply with order no. This paper discusses ferc order 2000 and the necessity for the formulation of the regional transmission organizations rtos. Ferc order and public policy transmission projects james heidell and sandra ringelstetter ennis nera economic consulting background federal energy regulatory commission ferc order, issued on july 21, 2011, addresses three fundamental reforms affecting transmission planning. Ferc order and public policy transmission projects. Entities interested in participating in the tsop should first download. In its first order, ferc rejected compliance filings by duke energy carolinas llc and carolina power and light company, dba progress energy carolinas dukeprogress and alcoa power generating, inc.
Presentation to the harvard electricity policy groups 81st plenary session, palm beach, fl, december 2015. Ferc accepted nyisos fourth order compliance filing, rejecting protests from transmission developers. The advantages, problems and implications of rtos are discussed. The commissions regulations are found under title 18 chapter i of the code of federal regulations cfr.
The regulatory assistance project 50 state street, suite 3 montpelier, vt 05602 phone. Why the vision of interregional electric transmission. Experiences in texas, california, and hawaii demonstrate what it takes to overcome permitting and cost allocation barriersnamely, a coherent policy framework and. Double click on the pdf and a separate page will open. The order established new electric transmission planning and cost allocation requirements for. Please join us for a onehour webinar to discuss the federal energy regulatory commissions fercs issuance of order no. Cost allocation reforms were included, possibly to reduce barriers faced by.
Ferc gridplanning rule survives legal challenge, setting stage for transmission upgrades a court upholds order, fercs greenfriendly regional grid planning rule. Its most recent, order, has an air of finality that represents the closing of an era for the commission as much as it does the beginning of one for the industry. In 2010, ferc issued order, which required rtos to create regional transmission plans and identify transmission needs based on public policy. The statements herein do not necessarily reflect the views of the commission. Transi9on to ferc order planning in new england stephen j. Intelligent utility magazine may june 2014 jim hoecker in mid20 intelligent utility asked for my personal top 5 observations about order no. On july 21, 2011, the federal energy regulatory commission ferc unanimously adopted order no. Briefing order presented by federal energy regulatory.
These uncertainties will receive attention during the current discussions over order compliance, as well as the ensuing implementation including. On august 15, 2014, the united states court of appeals for the district of columbia circuit unanimously affirmed order no. Ferc gridplanning rule survives legal challenge, setting. Ferc order opportunities to advance public policy objectives. The federal energy regulatory commission has an unexpected flair for naming its orders. Order should remain a priority for ferc utility dive. Transmission owners defended pjms, isones and spps designations of immediateneed reliability projects while states complained the rtos are frustrating ferc order s intent. As a consultant for most of the major utilities and independent transmission developers in the us, we know that ferc is having a. Gerrard 2 this working paper will appear as an article in the november 2012. Promoted impacts of ferc order on regional transmission planning and cost allocation webinar. Revisiting the federal energy regulatory commissions twostep dcf methodology for calculating allowed returns on equity. Order any entity can qualify to be a qrp and participate in the tosp. Ferc incentives revenue requirements lifetime cost of the project to customers return on equity material on hand, assets on hand, or, rightsofway ownership, control, or acquisition.