The Transmission Possible Newsletter

6/6/2024

A Word from Our Team

Welcome to the June edition of the Transmission Possible newsletter! This month, we spotlight the release of a much-anticipated federal transmission rule. In addition, the newsletter also contains updates on a new Federal-State Modern Grid Deployment Initiative, a plan for national transmission corridors, state policy advancements, and several upcoming events. 

FERC Issues New Order on Long-Term Transmission Planning

Transmission is the backbone of the electric grid, and as America's energy needs grow—driven by increased AI and data center demands, more large-scale renewables, electrification, and expanding domestic manufacturing—our energy infrastructure must expand accordingly. However, grid operators and utilities have struggled to keep pace with these needs.

To address these issues, the Federal Energy Regulatory Commission (FERC) issued a new rule - Order No. 1920, "Building for the Future Through Electric Regional Transmission Planning and Cost Allocation" on May 13. The rule mandates that transmission operators engage in long-term transmission planning over a 20-year period to anticipate and address future needs. It also reforms the process by which states agree on cost allocation for transmission projects and requires consideration of advanced transmission technologies. Furthermore, the rule emphasizes the significant role of states in planning, selecting, and financing transmission projects.

This initiative is designed to enhance grid reliability, facilitate the integration of renewable energy sources, spur economic development, and ultimately lower electricity costs for consumers. Now, attention will turn to the states and regions as regional transmission organizations and transmission utilities begin changing their processes to adhere to the new rule. Learn More.

Policy Updates

Updates on Federal Transmission Happenings 

White House & DOE Launch Federal-State Modern Grid Deployment Initiative 

The White House and DOE recently launched the Federal-State Modern Grid Deployment Initiative to strengthen America's power grid. This Initiative aims to support the deployment of tools such as GETs and advanced reconductoring. The program aims to invest in clean energy, upgrade 100,000 miles of transmission lines, and implement advanced grid technologies to ensure reliable, affordable, and sustainable energy for the future. Twenty-one inaugural states have joined the Initiative, partnering with the federal government to expedite improvements to the power system. Read More. 

Department of Energy Releases Preliminary List for NIETC 

On May 8, the DOE released a list of 10 potential National Interest Electric Transmission Corridors (NIETCs), which, if designated, would enable the federal government to accelerate the development of grid expansion projects in those regions. These proposed corridors span over 3,500 miles. The DOE is seeking public input on the process by June 24, after which it will narrow the list of potential development corridors and initiate formal corridor designation reports, environmental reviews, and public input sessions. Read More.

New England Grid Operator Proposes Transmission Rule Changes 

On May 9, grid leaders in New England asked FERC to approve new changes to the region's transmission rules that would allow the six states to coordinate efforts to plan, pay for, and develop new transmission projects. If approved, these changes would take place on July 9, 2024. Read More. 

Western NARUC Conference 

Transmission and FERC Order 1920 implementation were hot topics at the Western Conference of Public Service Commissioners (Western NARUC) in May, with multiple panels and other discussions focused on transmission planning and cost allocation. Chair Blank of Colorado moderated a conversation on resource adequacy and building new transmission, which featured former FERC Chair Rich Glick, Sarah Edmonds of the Western Power Pool, and Robert Kenney of PSCo on the panel.  

The discussion focused in part on the Western Transmission Expansion Coalition (WestTEC) and how it could be part of Order 1920 compliance in the non-RTO West. The conference also featured a moderated discussion between former Chair Glick and Commissioner Christie on Order 1920, the role of states in implementation, and the CREPC Transmission Collaborative, and a dinner hosted by ACEG that also focused on the Order and its implications for the West. 

State Transmission Policies 

California: 

AB2779 passed the Senate on May 9 and was heard in the Assembly Utilities and Energy Committee on June 4. This bill requires CAISO to report to the CPUC and the legislature upon approval of each transmission plan any new use of any GET in that plan and the cost or efficiency savings of the deployment of that GET. 

On May 20, CAISO announced the selection of Lotus Infrastructure Global Operations, LLC, in partnership with Southern California Edison Company, as the approved project sponsor for the North of SONGS - Serrano 500kV Transmission Line Project. This significant infrastructure endeavor, valued at $500 million, will involve financing, construction, ownership, operation, and maintenance of the transmission line. Read More. 

On May 20, SB1006 passed the Senate and will now proceed to the Assembly Utilities and Energy Committee. This bill requires utilities to develop a strategic plan for grid-enhancing technologies by January 1, 2026, aimed at cost-effectively enhancing the grid to support more renewable energy that includes a timeline for implementation. The legislation also requires utilities, beginning on January 1, 2026, to assess every four years which of its transmission and distribution lines can be cost-effectively reconductored with advanced conductors and to include a timeline for implementation. 

On May 22, AB3238 passed the Assembly and is now awaiting referral to Senate policy committees. This bill codifies part of the GO 131-D settlement agreement. Specifically, it exempts CEQA-specific projects from building, expanding, or modifying electrical infrastructure in an existing public right-of-way across state-owned land. In addition, it designates the CPUC as the lead agency for purposes of the CEQA, would require the CPUC to prescribe procedures for the preparation of the appropriate environmental review document for those projects, and would specify how the environmental review for those projects is to be conducted. 

On May 23, AB3246 passed the Senate and will now proceed to the Assembly Utilities and Energy Committee. This bill requires the CPUC, on or before January 1, 2026, to streamline the permitting process for advanced reconductoring by allowing a utility to seek CPUC approval for these projects through its informal advice letter process. 

On May 23, the CAISO board approved the 2023-2024 transmission plan to boost energy capacity in California and the West. The plan includes new projects like an offshore wind initiative and the SunZia line from New Mexico to Arizona, which will bring wind power to California. It emphasizes expanding solar, wind, and geothermal energy alongside battery storage. The board also discussed simplifying the process for connecting new energy sources and agreed to let certain resources bid above a price cap for fairer pricing. Read More. 

Maine:  

On April 22, Governor Mills signed LD1963 into law, authorizing the Department of Environmental Protection to review and issue permits for transmission lines in designated areas of the state. The Public Utilities Commission is now directed to favor proposals that include employer and employee agreements as defined by federal law. Additionally, the Commission and the Governor's Energy Office will collaborate with entities across New England to enhance the program's regional integration and effectiveness. The Commission's request-for-proposals (RFPs) will prioritize transmission projects that connect substantial renewable energy capacity from Northern Maine to the grid and must include risk mitigation strategies. Successful bidders granted a certificate by the Commission will be recognized as utilities, though the Commission retains the authority to impose restrictions on this recognition.  

Signed on April 22, LD2087 prohibits the use of eminent domain in the development or construction of energy facility connection lines or transmission lines under the Northern Maine Renewable Energy Development Program. This law ensures that property owner's rights are protected in these projects, preventing the compulsory acquisition of land for energy infrastructure. 

Oklahoma:  

After passing the first chamber on April 19, HB4097 sets new regulations for constructing and maintaining electric transmission facilities. It mandates competitive bidding for projects involving local electric transmission facilities with a rating above 300 kilovolts and a need date more than three years in the future, as determined by the Southwest Power Pool. The Oklahoma Corporation Commission would also appoint an independent evaluator to oversee the request for proposal and bid evaluation process. Incumbent electric transmission owners can participate in the bidding process. Additionally, the bill exempts electric cooperatives not part of the Southwest Power Pool, allowing them to construct, own, and maintain local electric transmission facilities without following the competitive bidding process required for larger projects. 

Updates from our Coalition Partners

Webinar: FERC's Transmission Rule & You

June 18, 4:00 PM ET / 3:00 PM CT / 1:00 PM PT 

Join Counterspark to learn more about FERC's recent transmission planning rule and what it means for consumers and speeding the clean energy transition. Register Here. 

Webinar: Navigating State Dynamics of FERC's Transmission Order (Part 2) 

June 20, 2:00 PM ET / 1:00 PM CT / 11:00 AM PT 

A follow-up discussion to Advanced Energy United's May 24 webinar that explored the ins and outs of the FERC transmission ruling, this webinar will examine the implications of the FERC Order on states, addressing key impacts, potential pushback, and United's role in facilitating adaptation. Join this discussion to learn from our panel of experts about how FERC Order 1920 will impact current state and regional transmission planning processes. Register Here.

Resources and Reports 

Fact Sheet: Understanding FERC's Order 1920 

RMI | May 2024

On May 13, 2024, the Federal Energy Regulatory Commission (FERC) released Order 1920, a landmark rulemaking requiring each of the United States' transmission planning regions to undergo long-term transmission planning. The rulemaking also contains important reforms to local transmission oversight and interregional coordination. 

To assist stakeholders with better understanding the rule, RMI has created the following downloadable fact sheet, which provides a high-level summary of the rule. Download the Factsheet. 

Report: Transmission Planning for PJM's Future Load and Generation: Version 1 

Americans for Clean Energy | May 2024

With increased demand from electrification, data centers, onshore manufacturing, and a higher frequency of extreme weather events, we need to ensure that the grid can handle the needs of the future. This report highlights several recommendations of best practices that PJM can adopt to progress its long-term transmission planning further. Download the Report. 

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 and 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. 

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 the need to modernize 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 recognizing this need, traditional grid investment approaches persist, highlighting the necessity for dynamic and cost-effective solutions. Download The Report. 

Consumer Advocates of the PJM States (CAPS) PJM Transmission Handbook   

David Gardiner & 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 to benefit consumers in PJM states. Download The Handbook. 

Transmission News Roundup

Canary Media: Where the DOE Wants New Power Lines  

Learn about the Biden administration's strategy to accelerate the nation's power grid expansion by identifying ten areas for fast-tracked transmission projects to facilitate clean energy deployment and mitigate grid constraints. Read More.

Canary Media: The Growing Clean Energy Backlog  

Learn how grid bottlenecks stalled nearly 2,600 gigawatts of clean energy projects, threatening the U.S. clean energy transition. Read More.

Grist: Texas' New Transmission Line Faces Opposition  

Learn more about how a vital transmission project aiming to connect Texas' power grid to the Southeast faces fierce opposition and could reshape the future of U.S. energy infrastructure. Read More. 

New York Times: New Rules to Overhaul Electric Grids Could Boost Wind and Solar Power 

This article overviews the new FERC transmission rule and its implications for renewable energy development. Read More. 

Pew Charitable Trusts: States Turn to GETs for Energy Grid Congestion  

Learn how states tackle energy grid congestion and save consumers money with grid-enhancing technologies. Read More.

RMI: FERC Order 1920 Can Help PJM Plan for the Future 

Learn how the new FERC rulemaking creates valuable opportunities for PJM to strengthen its current draft long-term regional transmission planning proposal. Read More.