FERC's new rule and other exciting transmission news
May 24, 2024
auto_awesome
Rob Gramlich, Expert in Grid Strategies, discusses FERC's new transmission planning rule, implications for clean energy goals, grid reliability, and consumer rates. Topics include 20-year plans, grid enhancing technologies, cost allocation dynamics, Infrastructure Investment and Jobs Act impacts, regulatory initiatives, future grid actions, and reevaluating stances on transmission infrastructure.
FERC's new rule mandates 20-year transmission plans with expanded benefits consideration for regional transmission operators.
Transmission providers must showcase seven key benefits in plans to optimize cost allocation and project selection for consumers.
Debate arises over state opt-outs in cost allocation for regional projects, balancing flexible state engagement with streamlined infrastructure development.
Deep dives
FERC's New Rule on Transmission Planning Encourages Longer-Term Planning and Consideration of a Range of Benefits
The final rule by FERC requires regional transmission system operators to develop 20-year plans and factor in a broader set of potential benefits from regional transmission. The rule aims to be a significant federal policy for transmission during Biden's term, filling the gap in legislative progress on transmission. This move towards longer-term planning acknowledges the critical role of the grid in meeting clean energy goals and enhancing reliability and cost efficiency for consumers.
Implications of FERC's Rule on Various Utilities and Planning Aspects
The rule mandates that all transmission providers, including utilities within and outside regional transmission organizations, must adhere to the specified planning requirements. Transmission operators are tasked with calculating and showcasing the seven distinct benefits of regional transmission in their 20-year plans. The rule emphasizes the significance of holistic planning approaches, focusing on maximizing benefits for consumers through efficient project selection and cost allocation based on those benefits.
State Involvement in Cost Allocation and Commissioner Disagreements on State Opt-Outs
States play a crucial role in determining the cost allocation strategy for the transmission projects following the beneficiary pays principle. Commissioner disagreements emerged regarding whether states should have the option to opt out of funding shared regional transmission projects. While some view opt-outs as essential for state flexibility, others argue that such provisions could hinder infrastructure development. The rule attempts to balance state engagement and cohesive cost allocation approaches to advance clean energy transmission objectives.
Debt Ceiling Deal and Legal Vulnerabilities
The episode discusses the administration's implementation of the debt ceiling deal causing significant discontent among certain groups. The conversation delves into the potential legal vulnerabilities associated with the actions taken by FERC, particularly concerning the major questions doctrine and the likelihood of court challenges. Despite the challenges, the episode highlights efforts being made at the Senate Energy Committee to navigate these issues.
Transmission Program Initiatives and Congressional Actions
The podcast episode explores various initiatives related to transmission programs, such as the transmission facilitation program aiming to stimulate private investments in infrastructure. Additionally, it details the Biden administration's announcement of upgrading 100,000 miles of transmission lines. The discussion extends to future possibilities for bipartisan legislation in Congress, emphasizing the importance of interregional transmission projects and potential reforms in NEPA processes.
In this episode, Rob Gramlich of Grid Strategies comes back on the pod to discuss the suddenly sizzling transmission world, where both President Biden and the Federal Energy Regulatory Commission have recently announced significant updates to transmission planning, permitting, and funding.
This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit www.volts.wtf/subscribe
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
