Prepare yourself - because May is going to be a busy month for transmission! This edition of the Transmission Possible monthly newsletter includes an overview of news from the U.S. Department of Energy, highlights on grid-enhancing technologies (GETs) policies in states, and a whole lot from the Federal Energy Regulatory Commission (FERC)!
As you may have heard, FERC will release its much-anticipated transmission planning and cost allocation order (Docket RM21-17) in an open meeting on May 13. The anticipated release of the final Order marks an opportunity to address the shortcomings of current transmission planning practices, which have resulted in higher consumer costs and insufficient investment in transmission infrastructure. A strong Order from FERC and strong implementation can create positive change by stimulating the construction of new regional transmission. This will enhance grid reliability, facilitate the integration of renewable energy sources, spur economic development, and ultimately lower consumer electricity costs.
Several Transmission Possible coalition partners will be monitoring and analyzing the upcoming Order. We will be hosting events and webinars, as well as sharing educational materials about what the FERC Order means for long-term transmission planning. As the Order is released and implementation begins, we will continue sharing important information about transmission policies at the state and federal levels. To learn more about the impact of the upcoming Order, read the National Wildlife Federation’s blog on FERC Planning and Cost Allocation.
Policy Updates
Updates on Federal Transmission Happenings
U.S. Department of Energy Issues Final Rule on Transmission Permitting
On April 25, the U.S. Department of Energy (DOE) unveiled final rules to streamline permitting for new and existing transmission projects, including the establishment of the Coordinated Interagency Transmission Authorizations and Permits (CITAP) Program. This initiative aims to improve federal environmental reviews and permitting processes for qualifying transmission projects, consolidating federal environmental reviews and authorizations within a standard two-year schedule. Catch the webinar on May 15.
Congress Introduces Bill Mandating FERC Interconnection Reforms
U.S. Senator Catherine Cortez Masto (NV) and Representative Kathy Castor (FL) introduced the Expediting Generators Interconnection Procedures Act of 2024 on April 18. This bill would address grid reliability concerns and require the Federal Energy Regulatory Commission to issue regulations within 18 months to give generating and storage resources faster and more cost-effective access to the grid.
NESCOE and ISO-NE Advance Transmission Planning and Procurement Ahead of FERC Ruling
This spring, New England's grid operator, ISO-NE, in collaboration with the New England states (NESCOE or New England States Committee on Electricity), has prepared to file Phase 2 of the Longer-Term Transmission Planning (LTTP) reform, anticipating FERC's forthcoming final rule on Transmission Planning and Cost Allocation. This phase addresses the region's need for new transmission infrastructure to support the transition to cleaner energy and ensure grid reliability amid rising electricity demand. Developed collaboratively, the framework establishes a comprehensive process for procuring, funding, and building transmission projects, with a key focus on equitable cost allocation among all six states based on electricity consumption. Notably, NESCOE's supplemental process enables states to pursue projects aligned with their policies while ensuring fair cost distribution, marking a significant step forward in overcoming longstanding barriers to transmission development. This approach underscores New England's commitment to meeting its grid goals by 2050 and positions the region as a leader in addressing transmission challenges. Read More.
In April, three bills related to grid-enhancing technologies (GETs) and advanced reconductoring passed their initial policy committees in California with unanimous approvals. SB 1006, led by Senator Padilla, aims to support advanced transmission technologies by requiring utilities to develop strategic GETs and advanced reconductoring deployment plans. AB 3246, led by Assemblymember Garcia, streamlines reconductoring permitting through the California Public Utilities Commission’s (CPUC) informal advice letter process. Finally, AB 2779, led by Utilities & Energy Chair Petrie-Norris, requires the California Independent System Operator (CAISO) to report GETs deployment and associated cost savings to the CPUC and the legislature.
Grid Resilience and Innovation Partnerships Program
If approved, the grant would fund upgrades to California's electric transmission system, increasing capacity and reducing congestion, which often leads to higher bills for customers. Additionally, project proponents estimate that it will create new jobs, support renewable energy projects, and invest in education programs to train the next generation of energy leaders.
CAISO Proposes Transmission Plan for Offshore Wind
The California ISO (CAISO) has proposed a $6.1 billion transmission plan, primarily aimed at supporting the delivery of offshore wind energy to customers. This draft plan, released on April 1, outlines $4.6 billion worth of projects to access clean energy resources and $1.5 billion worth of reliability-driven projects. Additionally, the plan opens up the region for competition and supports wind and solar imports from Arizona, Idaho, Nevada, New Mexico, and Wyoming. Developed in coordination with the California PUC and California Energy Commission, the plan seeks to address the state’s growing energy needs and increase grid reliability in the coming years. If approved, these projects are expected to be implemented over the next eight to 10 years, facilitating access to over 38 GW of new solar energy, 21 GW of geothermal capacity, and significant wind imports. Read More.
On April 22, the New York legislature passed a state budget that included transmission policies that should help the state meet its energy goals. The Renewable Action Through Project Interconnection and Deployment (RAPID) Act aims to streamline and enhance the siting of transmission projects. Under this act, oversight of such projects would transition to the Office of Renewable Energy Siting (ORES), now housed within the Department of Public Service.
Virginia's GETs House Bill, HB862, was signed into law by Governor Youngkin on April 5 after it passed the General Assembly with bipartisan support. This legislation directs utilities to integrate GETs and advanced conductors into their Integrated Resource Plans (IRPs) and other regulatory filings, with the goal of optimizing the efficiency of Virginia's existing grid. Furthermore, the bill mandates an assessment of GETs and advanced conductors for proposed transmission lines, prioritizing cost-effective solutions and sustainability.
In this webinar, hosted by the American Council on Renewable Energy (ACORE), leaders from the U.S. clean energy sector and transmission advocates will react to the final rulemaking and discuss the next steps FERC can take to further enable the transmission capacity expansion necessary to meet current and future electricity demand. Register Here.
The first in Advanced Energy United's Transforming Transmission two-part webinar series, this discussion will provide perspectives on why FERC acted, what the Order does and doesn’t require, how utilities and RTOs will approach compliance, and when next steps will unfold. Starting with opening remarks from Karin Hertzfeld, Senior Transmission Counsel for FERC Chairman Willie Phillips, the panel will delve into the details of the FERC rule and its anticipated impact. Part 2 of the webinar series (to be announced) will examine how states, in the wake of the FERC Order, can navigate the evolving landscape of regional transmission planning and optimize transmission investments to advance clean energy goals. Register Here.
Join Americans for a Clean Energy Grid (ACEG) for a Transmission Time webinar focused on FERC’s regional planning and cost allocation rulemaking, expected on May 13. The panelists will discuss what is included in the rule and what states and regions will need to do to comply and answer questions from the audience about the future of transmission under these new regulations. Register Here.
States in Sync: The Western Win-Win Transmission Opportunity
RMI | April 2024
RMI’s States in Sync report offers an overview of transmission planning in the West, accompanied by recommendations for states to enhance their involvement in the process. The report comprises two key analyses: (1) an assessment of potential growth in clean energy markets under three load scenarios and the transmission constraints for traditional energy export states (MT, WY, CO, and NM) seeking access to those markets, and (2) an energy modeling effort to quantify the cost reductions from achieving clean energy goals in the West collaboratively compared to pursuing state goals independently within a single state. Download the Report.
Be sure to check out RMI’s next webinar, “States in Sync: The Western Win-Win Transmission Opportunity,” on May 9, 2-3 PM ET/11-12 PM PT. This webinar will showcase the key findings from the States in Sync report and explore how states can work together to plan the transmission system needed to enable massive new economic opportunities. Register Here.
Consumer Advocates of the PJM States (CAPS) PJM Transmission Handbook
David Gardiner and Associates | February 2024
David Gardiner and Associates' Consumer Advocates of the PJM States (CAPS) Handbook is designed to empower consumers and advocates amidst rising consumer electric rates by enhancing their understanding of transmission infrastructure. Divided into seven volumes, the handbook elucidates the intricacies of transmission planning, development, and cost recovery processes. Covering topics such as electric network history, transmission project costs, and rate cases in the PJM region, the handbook seeks to promote transparency and foster a cost-effective transmission network for the benefit of consumers in PJM states. Download the Handbook.
Smarter Use of the Dynamic Grid: Accessing Transmission Headroom Through GETs Deployment
AES | April 2024
On April 11, AES released its Smarter Use of the Dynamic Grid report, analyzing the financial and reliability impact of four commercially available GETs. The report points to a need for modernizing the electrical grid due to the rapid growth of load-consuming assets and increasing electricity demand. The report finds that conventional grid planning processes are manual and outdated, leading to challenges in managing transmission capacity and congestion. AES emphasizes the importance of innovative solutions like GETs to facilitate flexible asset management, integrate renewable energy, and optimize grid operations. Despite recognition of this need, traditional grid investment approaches persist, highlighting the necessity for dynamic and cost-effective solutions. Download the Report.
Innovative Grid Deployment Liftoff Report
U.S. Department of Energy | April 2024
The Innovative Grid Deployment Liftoff report, released by the U.S. Department of Energy, offers a strategic roadmap for accelerating the deployment of advanced grid solutions across the nation's transmission and distribution systems. Featuring twenty technologies, this report outlines pathways to enhance reliability, resilience, affordability, and sustainability, providing a blueprint for stakeholders to drive change without imposing additional costs on ratepayers. Download the Report.
Join the Innovative Grid Liftoff Launch webinar on May 13 at 10:30 am ET/7:30am PT. Register Here.
Hydro-Québec and Mohawk Council of Kahnawake Reach Co-Ownership Agreement for $1.1 Billion Transmission Line
In an agreement that could serve as a template for future land deals, Hydro-Québec and the Mohawk Council of Kahnawake signed an accord in April 2024 that will make the Indigenous community a co-owner of a $1.1-billion transmission line exporting electricity to New York City. Read More.
DOE Issues Road Map for Grid Interconnections to Unlock 2.6-TW Backlog
The U.S. Department of Energy recently unveiled a Transmission Interconnection Roadmap aimed at streamlining and enhancing the process of connecting generators to the grid. This roadmap, released on April 17, responds to a significant backlog in grid interconnection queues, which saw a 27% increase last year, reaching approximately 2.6 terawatts (TW) of capacity. It focuses on four key areas: improving data access and transparency, expediting the interconnection process, promoting economic efficiency, and ensuring grid reliability. By offering recommendations, such as creating fast-track interconnection options and exploring interregional transmission projects through joint planning, the roadmap aims to address these challenges. Read More.
FERC Approves PJM’s $5.1B Transmission Cost-Share Plan
On April 10, FERC approved PJM Interconnection's $5.1 billion transmission cost-share plan. FERC's approval of PJM's Regional Transmission Expansion Plan (RTEP) allocates costs for grid upgrade. This decision aims to facilitate efficient grid development and enhance reliability across the PJM region. Read More.
Ten West Link Finalizes Construction
On April 25, construction was finalized on the Ten West Link, a high-voltage transmission line spanning from Arizona to California. This milestone was celebrated by officials, highlighting the line's crucial role in propelling the region's energy transition forward. Read More.
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