FERC
Clarity Sought on Grid Plans, Costs
NRECA has asked the Federal Energy Regulatory Commission to rehear and clarify several aspects of its Order 1000, the panel’s landmark final rule on transmission planning and cost allocation.
NRECA is seeking clarification of several aspects of the Federal Energy Regulatory Commission’s new rule on transmission planning and cost allocation. (Photo By: JacquesKloppers)
The association’s Aug. 22 request noted that while it raised only a limited number of issues, it reserved the right to address additional issues in response to the future compliance filings of individual public utilities.
“The Order 1000 final rule, while significant, is at the front of a long process leading to compliance filings to be made more than one year from now,” underscored Rich Meyer, NRECA senior regulatory counsel.
FERC intended Order 1000, issued in July, to reform transmission planning and allocate the costs of new projects to their beneficiaries.
The rule [Docket RM10-23] mandates regional grid planning processes premised on regional needs and stakeholder input. According to FERC, state and federal policies articulated in enacted statutes and regulations should be reflected.
Order 1000 also sets requirements for regional allocation of transmission costs. FERC Chairman Jon Wellinghoff has specified that “costs must be allocated at least roughly commensurate with estimated benefits,” but the issue remains highly controversial.
In its filing with the commission, NRECA said FERC should:
- Clarify the provisions on reciprocity—the mechanism by which FERC orders apply to non-jurisdictional transmission providers, such as co-ops—contained in the rule. If the commission declines to do so, NRECA said, it should grant rehearing, because its description of these provisions “is inconsistent with longstanding FERC precedent”;
- More explicitly recognize its statutory obligation under the Federal Power Act to facilitate transmission planning for load-serving entities, such as electric co-ops;
- Confirm that non-incumbent merchant transmission developers that are public utilities are subject to the same planning and information requirements as incumbent public utilities; and
- Remove the rule’s assertion that FERC has the authority to impose costs—akin to a tax—on entities that do not receive transmission service from a public utility.
Elaborating on NRECA’s request regarding reciprocity, Meyer noted that the association is “pleased” that FERC says it is not seeking to expand reciprocity as it currently applies to co-ops. However, he pointed out, because Order 1000 incorrectly states how reciprocity works, clarification is requested.