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