A coalition of large energy consumers and ratepayer advocates has filed a complaint with the Federal Energy Regulatory Commission (FERC), urging the agency to prohibit transmission owners from independently planning "local" transmission projects exceeding 100 kilovolts (kV). The coalition argues that such local planning, lacking independent oversight, leads to inefficient and costly transmission development, resulting in unjust and unreasonable rates for consumers.
The Complaint and Concerns
The coalition's complaint highlights several key concerns regarding the current transmission planning framework:
Lack of Independent Review: Local transmission projects often undergo minimal independent scrutiny, leading to potential inefficiencies and higher costs.
Incentives for Overinvestment: Transmission owners may be motivated to invest in local projects due to the absence of competitive bidding and the limited review provided by FERC's formula rate process.
Regional Planning Deficiencies: The current regulatory framework allows local planning exceptions to override regional planning rules, hindering the development of more efficient regional solutions.
The coalition proposes that FERC mandate regional planning conducted by an independent transmission system planner to ensure that projects are both appropriate and beneficial to consumers.
Regulatory Context
This complaint follows significant recent developments in transmission planning:
FERC's Order 1920-A: In November 2024, FERC revised its Order 1920, granting state utility regulators a larger role in decision-making and requiring transmission providers to include state input in long-term regional planning.
FERC's Rejection of PJM's Proposal: In December 2024, FERC rejected proposals that would have granted PJM transmission owners more control over the grid operator’s planning process, citing concerns about undue influence.
Implications
The coalition's complaint underscores ongoing debates about the effectiveness and fairness of transmission planning processes. Proponents of independent planning argue that it can lead to more efficient and cost-effective solutions, ultimately benefiting consumers. Opponents caution that such changes could introduce new complexities and delays into the transmission development process. As FERC reviews the complaint, stakeholders across the energy sector will be closely monitoring the potential implications for transmission planning and the broader regulatory landscape.
Source Reference: Electricity Today - FERC Complaint Targets Duke, PJM Transmission Planning (https://www.electricity-today.com/news/ferc-complaint-targets-duke-pjm-transmission-planning)
