FERC approves transmission policy

The FERC has approved Order 1000, which gives priority to public policy for power transmission projects.

07/22/2011


According to a Federal Energy Regulatory Commission (FERC) release, it has approved Order 1000—a rule that puts priority on public policy requirements when it comes to determining planning requirements and cost allocation for power transmission.

Many projects stand to benefit from the change. The most notable is renewable energy integration.

FERC’s purpose for Order 1000 is to eliminate red tape for transmission development. Order 1000 also sets guidelines for cost allocation and transmission planning. Some of the notable changes include a requirement for public utility transmission provider to establish needs based on public policy requirements and regions planning to build in neighboring areas must have a common interregional cost that is determined to be cost-effective.

While supporters believe this order is a vital step forward for transmission development, critics believe customers who don’t directly benefit from the expanded facilities will be hit with excess costs.

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