Brattle Analyses Cited in FERC Order on Long-Term Transmission Planning
Brattle analyses were referenced in the new Federal Energy Regulatory Commission (FERC) transmission and cost allocation rule, Order No. 1920, which – issued on May 13, 2024 – requires US transmission providers to plan for transmission that will be needed in the future. The reforms within the new rule are designed to address shortcomings in FERC’s existing regional and local transmission planning and cost allocation requirements.
Order No. 1920 includes specific requirements addressing how transmission providers must conduct long-term planning for regional transmission facilities. Major elements are:
- A requirement to conduct and periodically update long-term transmission planning to anticipate future needs
- A requirement to consider a broad set of benefits when planning new facilities
- A requirement to identify opportunities to modify in-kind replacement of existing transmission facilities to increase their transfer capability, known as “right-sizing”
- Customers pay only for projects from which they benefit
- An expansion of states’ pivotal role throughout the process of planning, selecting, and determining how to pay for transmission facilities
Numerous Brattle reports and presentations on proactive transmission planning and benefit-cost analyses were cited in the order, which will take effect 60 days after it is published in the Federal Register.
