The US Federal Energy Regulatory Commission (Ferc) has opened a public consultation on potential reforms to improve transmission planning and cost allocation and generator interconnection processes as the country transitions to more renewable energy sources.
Ferc said that the Advanced Notice of Proposed Rulemaking, Building for the Future Through Electric Regional Transmission Planning and Cost Allocation and Generator Interconnection recognises that the changing resource mix will create new demands for grid expansion and questions whether the existing approach to transmission planning, cost allocation and interconnection is consistent with the requirements of the Federal Power Act.
The Commission is seeking public comment on potential reforms in three specific areas.
First, reforms for longer-term regional transmission planning and cost-allocation processes that take into account anticipated future generation.
Second, rethinking cost responsibility for regional transmission facilities and interconnection-related network upgrades.
Third, enhanced transmission oversight over how new transmission facilities are identified and paid for.
Ferc chairman Rich Glick said: “As the generation fleet shifts at an unprecedented rate from resources located closer to population centres towards resources located far from load centres, we must evaluate whether our transmission planning and cost allocation and generator interconnection processes require a more innovative and anticipatory approach.
“A piecemeal approach to expanding the transmission system is not going to get the job done.
“We must take steps today to build the transmission that tomorrow’s new generation resources will require.
“Today’s action is a critical first step in ensuring that Ferc is thinking innovatively and actually anticipating transmission that will meet the needs of new generation as our nation continues to aggressively transition to a clean energy future.
“This is the Commission’s first effort at major transmission reform in a decade and I look forward to moving as expeditiously as possible to advance these conversations.”
Reply comments are due 105 days after publication in the Federal Register.
American Clean Power Association chief executive Heather Zichal said: “The American Clean Power association applauds Ferc for starting the long-needed conversation on comprehensive transmission reforms that will help ensure the nation has a 21st century grid that can cost-effectively and reliably connect power sources to consumers to meet current and future needs.
“Reforms to Ferc’s rules for transmission planning, cost allocation, and interconnection hold the promise of unlocking investments that will spur the development of additional high-priority, high-voltage transmission lines that will help move cheaper and cleaner electricity to where it is needed.
“This will help keep pace with the administration’s targets to decarbonise the energy sector, and create thousands of jobs needed to build this infrastructure.
“ACP and our members look forward to working with Ferc to ensure that our nation’s transmission system is modernised to keep pace with our clean energy future.”