The Transmission Possible Newsletter

9/5/2024

A Word From Our Team

Welcome to the September edition of the Transmission Possible newsletter! Dive into this month’s issue, packed with the latest breakthroughs in transmission planning, regional updates, and FERC-related news.   

New Report Urges Reforms to Accelerate Grid Connection for New Energy Sources 

Our country’s process for connecting new, large-scale clean energy projects to the transmission grid, known as generator interconnection, is unnecessarily slow and painfully expensive. To cost-effectively meet America’s growing energy needs, we recognize that this process must be overhauled and, thankfully, the Federal Energy Regulatory Commission (FERC) agrees. In an effort to further improve this process and build upon its landmark ruling Order No. 2023, FERC is convening a two-day workshop on interconnection reform next week on September 10th and 11th.   

Ahead of the workshop, Grid Strategies LLC and The Brattle Group recently authored a report calling for significant reforms to the generator interconnection process. The report, Unlocking America’s Energy: How to Efficiently Connect New Generation to the Grid, which Advanced Energy United co-commissioned, outlines strategies to expedite the connection of new energy projects while reducing costs and improving reliability.  

The report proposes several key reforms, including:   

• Introducing an interconnection "entry fee" to provide upfront cost certainty,
• Fast-tracking projects that utilize existing and planned grid capacity, 
• Optimizing the interconnection study process, and 
• Speeding up the construction of essential transmission infrastructure.  

These changes are crucial to overcoming the current backlog of 2,600 GW of projects waiting for grid connection and ensuring a more efficient, cost-effective energy future.  

This report provides a timely roadmap for the structural changes needed to accelerate the integration of new energy projects, reduce costs, and enhance grid reliability.  

Call to Action: Participate in #InterconnectionWeek (September 9-13) 

Next week (September 9-13), in light of FERC’s workshop, we encourage you to join us in spreading the word about the importance of more effectively connecting clean energy projects to the power grid by posting about #InterconnectionWeek on your or your company’s social media channels. This effort is intended to illuminate the role grid operators and utilities could play in accelerating the deployment of clean energy solutions. A social media toolkit, which provides sample language and graphics, can be seen here. Together, with supportive action by decision-makers, we can take steps toward a reliable and affordable electricity system. 

Policy Updates

Updates on Federal Transmission Happenings 

Representative Sean Casten Reintroduced the Reinforcing the Grid Against Extreme Weather Act of 2024 

On August 20, Representative Sean Casten (D-IL) reintroduced the Reinforcing the Grid Against Extreme Weather Act of 2024 (HR 9362). This legislation is designed to bolster the resilience of the U.S. electric grid in the face of escalating extreme weather events. The act mandates that the Federal Energy Regulatory Commission (FERC) establish rules to define the minimum transfer capability between transmission planning regions. These rules will require each transmission planning entity to ensure a robust transfer capability with adjacent regions, enhancing grid reliability and safeguarding power supply during severe weather conditions. 

Western Governors Support Regional Investments in Transmission

Last month, Governors Katie Hobbs of Arizona and Michelle Lujan Grisham of New Mexico co-author an opinion article addressing the urgent need to upgrade the transmission grid in the West to improve grid reliability and better withstand increasingly extreme heat. 

“The West’s electric grid has been neglected for decades, and our families and businesses are paying the price. Particularly with the rising threat of extreme heat, we need a transmission grid that can provide our homes, businesses, and our flourishing manufacturing facilities with the consistent and dependable energy supply they need to thrive.” 

This op-ed highlighted the importance of regional cooperation and investments in transmission infrastructure and calls for collective state action alongside federal support to ensure reliability, create jobs, and save on energy costs.  

Leadership from Governors across the US is crucial in driving these initiatives forward.

Transforming Transmission: The Importance of FERC Order No. 1920

A significant show of support has been demonstrated by a group of state regulatory commissioners who have signed a letter to FERC backing Order No. 1920. This landmark order, issued on May 13, 2024, aims to revolutionize the evaluation and selection process for Long-Term Transmission Facilities, enhancing grid reliability and economic efficiency.

The letter highlights the extensive collaborative efforts behind Order No. 1920, reflecting the input from the Joint Federal-State Task Force on Electric Transmission. The commissioners additionally emphasized the importance of proactive, multi-purpose transmission planning, direct state involvement in cost allocation, and the equitable distribution of transmission costs.

This unified endorsement underscores the critical need for advanced transmission infrastructure to support America's economic growth and grid resilience in the face of increasing extreme weather events.

DOE Rolls Out $2.2B to Strengthen the Electrical Grid and Add Clean Power 

The U.S. Department of Energy (DOE) has announced $2.2 billion in funding for eight projects across 18 states to enhance the electrical grid and incorporate more clean energy. This initiative is part of the Grid Resilience and Innovation Partnerships program funded by the Bipartisan Infrastructure Law of 2021. The planned investments will add over 600 miles of new transmission lines and upgrade 400 miles of existing ones to boost capacity and reliability.

Key projects include upgrading transmission lines in California to add renewable energy, enhancing connection points in New England for offshore wind energy, and building a high-voltage transmission line across Montana and North Dakota. Additionally, the Virginia Department of Energy will receive $85 million to implement clean electricity and backup power at data centers.

These investments aim to provide reliable, affordable electricity for 56 million homes and businesses while addressing the growing demand for power and the challenges posed by extreme weather events.

Senators Manchin and Barrasso Release Bipartisan Energy Permitting Reform Legislation

U.S. Senators Joe Manchin and John Barrasso have introduced the bipartisan Energy Permitting Reform Act of 2024. This legislation aims to expedite the permitting process for critical energy and mineral projects across the United States, enhancing American energy security and economic growth. The Act addresses the current outdated permitting system, which has hindered economic progress and energy development. It includes provisions to secure access to oil and gas resources, produce more American minerals, end the ban on natural gas exports, and strengthen the electric grid while protecting consumers. For more details, read the full announcement here.

State & Regional Transmission Policies 

California

At the end of August, AB2779 passed the legislature unanimously and now sits on the Governor’s desk for signature. AB2779 requires CAISO, upon approval of each transmission plan, to report to the CPUC and the legislature any new use of any GETs in that plan, and the cost or efficiency savings of the deployment of that GET.  

At the end of August, SB1006 passed the legislature unanimously and now sits on the Governor’s desk for signature. After amendments taken in committee, this bill requires each utility to prepare a study of the feasibility of projects using GETs every two years and another study of which of its transmission lines can be reconductored with advanced conductors every four years. Each study would include information on how the projects could achieve increased capacity, decreased congestion, increased reliability, and reduced wildfire risk, among other benefits. Upon completion of the studies, utilities must request CAISO to review the results as part of its transmission planning process for economic, reliability, and policy goals. 

Maryland

On August 16, Maryland State Senator Ron Watson and Delegates Adrian Boafo, Lorig Charkoudian, David Fraser-Hidalgo, and Natalie Ziegler released a joint statement addressing the dramatic surge in electricity prices announced by PJM, Maryland’s electric grid operator. The prices have skyrocketed by over 900%, with Maryland facing the highest increase to $466.35 per megawatt-day. As a result, Maryland households and businesses could see their electricity bills rise by more than 30% next year. 

The legislators attribute this spike to PJM’s prolonged failure to connect new, clean, and affordable energy resources, including solar and battery storage, to the grid. At the end of 2023, over 3,300  projects were still waiting for connection even though they have the capacity to replace all current generation in the PJM system and planned fossil fuel retirements. With this backlog, new renewable projects cannot begin delivering power to Maryland consumers until 2026. The legislators are urging reforms for a more efficient and equitable grid planning process that prioritizes renewable energy and relieves the financial burden on Maryland ratepayers. Learn more here. 

PJM Sees Electricity Prices Skyrocket

Electricity prices are set to soar across PJM’s 13-state territory based on results from a recent capacity auction. PJM, the largest U.S. power grid operator, has announced a dramatic increase in capacity prices, jumping from $28.92 to $269.92 per megawatt-day. This surge has been attributed to PJM’s inadequate preparation for the energy transition and its poor performance in managing generator interconnections and building new transmission lines. With PJM's interconnection queue closed until 2025 and hundreds of projects in limbo, the need for transmission planning improvements and interconnection reforms is more urgent than ever. For more insights, read the full article here.

Updates From Our Coalition Partners

Webinar: Reforming State and Local Policies to Accelerate Clean Energy Deployment (Recording)

Webinar: Accelerating Interconnection Reforms For A Stronger, More Affordable Grid (Recording)

Webinar: Bridging the Power Gap: How Bidirectional Clean Energy Benefits the US Northeast and Canada 

October 9 at 12 PM ET/ 11 AM CT / 9 AM PT

Event: ACORE Grid Forum  

October 10 at 9 AM - 5 PM ET in Arlington, Virgina

Resources and Reports 

Explainer: Energy Permitting Reform Act of 2024

Grid Strategies LLC | July 2024

Grid Strategies LLC has developed a flow chart explaining key transmission provisions of S. 4753, the Energy Permitting Reform Act of 2024. This visual summary details two primary routes for new transmission projects: an applicant-driven process and an interregional planning requirement. These provisions aim to streamline the planning, permitting, and development of new transmission infrastructure. Check out the full explainer here.

Guide: Reforming State-Level Siting and Permitting Policies 

Advanced Energy United | July 2024

On July 11, Advanced Energy United published "A Guide to Reforming State-Level Siting and Permitting Policies," addressing the urgent need to streamline the approval processes for clean energy projects. With increasing electricity demand and the push for more renewable energy sources, the guide highlights how outdated and complex regulations often hinder the development of wind, solar, and battery storage projects. The guide provides key policy recommendations to help state decision-makers set clear, consistent standards for large-scale renewable energy projects, aiming to unlock millions in new investments and create good-paying jobs in the clean energy sector. For a comprehensive overview of the recommended reforms, read the full guide here.

Report: Common Sense Ways to Improve the Power Transmission System

Acadia Center | July 2024

Acadia Center's latest report, "Common Sense Ways to Improve the Power Transmission System," explores the potential of Advanced Transmission Technologies (ATTs) and Grid Enhancing Technologies (GETs) to significantly boost the capacity, efficiency, and reliability of existing power transmission lines. The report emphasizes the urgency of incorporating these technologies to meet growing electricity demand and facilitate the transition to clean energy.

ATTs and GETs offer a cost-effective and rapid solution to increase transmission capacity, thereby reducing grid congestion and accelerating renewable energy deployment. Acadia Center supports the implementation of FERC Order 1920, which mandates the inclusion of GETs in long-term regional transmission planning, marking a pivotal step towards a more resilient and efficient grid. For a deeper understanding of these innovative technologies and their benefits, read the full report here.

Report: Fewer New Miles: The U.S. Transmission Grid in the 2020s

ACEG & Grid Strategies LLC | July 2024

The latest report by ACEG and Grid Strategies, "Fewer New Miles: The U.S. Transmission Grid in the 2020s," highlights a slowdown in the construction of high-voltage transmission lines across the United States. The findings reveal that while annual transmission spending has reached over $25 billion, most funds used for reliability upgrades and replacing aging infrastructure rather than building new lines, posing significant challenges to the nation’s energy future.

Despite federal efforts, including FERC’s Order No. 1920 and new DOE rules, a significant increase in federal funding and utility investment is essential to achieve this expansion. To explore more insights and understand the full scope of the challenges and recommendations, read the full report here.

Transmission News Roundup

Canary Media: Midwest Grid Operators Submit $1.7B Plan To Build Cross-Border Power Lines 

The News & Observer: A Federal Grant For A Transmission Line Will Help NC Add Solar Power. Here’s How.  

Utility Dive: Do Tri-State’s Member Exits Signal ‘The Next Episode’ For PJM? 

Utility Dive: New York Orders Utilities To Join In Proactive Grid Planning 

Utility Dive: MISO, SPP Advance ‘Unprecedented’ Transmission Plan That Could Support Up To 30 GW 

Thanks,  

Verna Mandez 
Transmission Possible Director