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New FERC Electric Regional Transmission Rule: Framework for Long-Term Planning and Cost Allocation

Recording of a 90-minute premium CLE video webinar with Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Conducted on Thursday, August 15, 2024

Recorded event now available

or call 1-800-926-7926

This CLE webinar will provide guidance on the final rule recently issued by the Federal Energy Regulatory Commission (FERC), Order No. 1920 and will discuss key elements of the final rule and practical implications for transmission operators.

Description

The energy transmission grid is part of an energy system undergoing significant changes. Among these are an unprecedented surge in demand for electricity driven by the electrification of the economy, manufacturing and data use, and the need to interconnect significant quantities of new resources, most of them renewable and intermittent in nature.

In response to these and other challenges, on May 13, 2024, FERC issued its final rule, which it designated Order No. 1920. The final rule aims to overhaul the existing rules for regional transmission planning and cost allocation.

The rule adopts requirements for transmission providers to conduct long-term planning for regional transmission facilities and determine how to pay for them. It also requires transmission operators to conduct long-term transmission planning over an at least 20-year time horizon at least every five years.

Listen as our panel discusses key elements of the final rule, its implications for regional transmission planning, cost allocation, states' involvement, and more.

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Outline

  1. Introduction and background
  2. Long-term regional transmission planning, transparency, and right sizing
    1. What that means and how that is different from current practice
    2. Specific factors that must be included in long-term transmission planning
    3. Changes to planning assumptions – requirements to consider new technologies
    4. Changes to local planning, interconnection, and right sizing
    5. How solutions are evaluated – from simple cost to seven key benefits
  3. Cost allocation and cost recovery
    1. What’s required for compliance – consultation with states
    2. Alternative cost allocation – state agreement process
    3. Construction work in progress cost recovery
  4. Interregional transmission coordination
  5. Compliance, alternatives, legal challenges and other
    1. Compliance timeline
    2. Appeals, rehearing, and implications for legal challenges to Order No. 1920
    3. Alternatives to Order No. 1920
  6. Subsequent developments and wrap up

Benefits

The panel will discuss these and other key issues:

  • What are the key provisions of Order No. 1920?
  • What are the anticipated impacts on transmission operators?
  • What is the timeline for implementation?
  • Is it likely that future legal challenges to Order No. 1920 will disrupt its implementation?

Faculty

Murphy, Ted
Ted J. Murphy

Partner
Hunton Andrews Kurth

Mr. Murphy focuses his practice on federal energy regulation, particularly FERC regulation of electricity and natural...  |  Read More

Paradise, Theodore
Theodore J. Paradise

Partner
K&L Gates

Mr. Paradise is a partner and a member of the firm’s global Energy, Infrastructure, and Resources practice area...  |  Read More

Rwejuna, Serena
Serena Rwejuna

Partner
White & Case

Ms. Rwejuna is a partner in the Energy, Infrastructure, Project and Asset Finance Group (EIPAF) where she Co-Heads the...  |  Read More

Wright, Jonathan
Jonathan Wright

Senior Associate
Covington & Burling

Mr. Wright is a member of the firm’s Environment and Energy and Corporate practices, and counsels clients on a...  |  Read More

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