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On April 21, 2022, the Federal Vitality Regulatory Fee (“FERC”) accepted a draft proposed rule (the “Proposed Rule”) relating to transmission planning and transmission value allocation. In keeping with a FERC information launch issued that day, “[t]he proposed rule addresses the necessity for our nation’s vitality infrastructure to be extra resilient and dependable whereas additionally reaching value financial savings for shoppers.” The Proposed Rule is a element of a bigger superior discover of proposed rulemaking introduced in July of 2021 (the “Superior Discover”).
The transmission planning side of the Proposed Rule contains timeframe, identification of wants, analysis of facility advantages, and elevated transparency. Transmission suppliers could be required to determine transmission wants primarily based on adjustments in useful resource combine and demand through long-term situations that meet the necessities set forth within the Proposed Rule. They might additional be required to evaluate the advantages of regional transmission amenities to fulfill the recognized wants over a minimal timeframe of 20 years from the in-service date of the given amenities. The Proposed Rule would additionally mandate the institution of clear and never unduly discriminatory standards to pick transmission amenities and additional coordination between regional and native transmission planning to determine “right-size” substitute transmission amenities. Sure applied sciences akin to dynamic line rankings and superior energy stream management gadgets would additionally have to be thought of.
The regional transmission value allocation a part of the Proposed Rule emphasizes state involvement. Particularly, public utility transmission suppliers could be required to hunt the settlement of the related state entities throughout the given transmission planning area with respect to the associated fee allocation strategies that will apply to transmission amenities chosen within the regional transmission plan. These suppliers would then revise their open entry transmission tariffs to incorporate these strategies. Preliminary feedback on the Proposed Rule are due 75 days after its publication within the Federal Register.
The Superior Discover had additionally included a request for feedback on interconnection queue reform (amongst different subjects), however the Proposed Rule didn’t tackle this matter immediately. As a substitute, FERC indicated that it could proceed to guage the report and would tackle different doable inadequacies in subsequent proceedings. The necessity for adjustments to the interconnection queue course of has just lately been a serious matter of debate, together with PJM’s proposal introduced April 28, 2022 (“Interconnection Proposal”), to have a two 12 months transition interval to work by means of backlogged initiatives submitted earlier than 2021. The Interconnection Proposal additionally contains plans to handle initiatives on a first-ready, first served foundation as an alternative of first come, first served. PJM would additional simplify its value accountability evaluation of particular person initiatives by combining initiatives throughout the similar cycle. Tasks that will not improve community improve wants or wouldn’t want amenities research would even be expedited. PJM plans to file the Interconnection Proposal with FERC in Could.
Foley is dedicated to serving to our purchasers within the Vitality sector in markets nationwide. When you’ve got any questions on these developments, please contact Lynn Parins, Rikaela Greane or your Foley lawyer.
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