Ferc order as a new tool for promoting energy efficiency. The federal energy regulatory commission has an unexpected flair for naming its orders. Quanta technology monitors those processes for opportunities and will. Codified and revised certain standards and requirements for market based rates. Federal energy regulatory commission ferc order nos. Ferc order issued in 2011 has stimulated increased. Nontransmission alternatives s comparable consideration. Mar 28, 2018 march 28, 2018 federal energy regulatory commission 888 first street northeast washington, dc 20426 dear chairman mcintyre and commissioners powelson, glick, chatterjee, and lafleur, the federal energy regulatory commission ferc has long stood for competition and political independence. Order compliance filings regional compliance filing oct 11, 2012. On july 21, 2011, the federal energy regulatory commission ferc unanimously adopted order no.
However, as ferc explains in order, major changes in the nations. May 09, 2018 of the various policies being considered by the federal energy regulatory commission ferc this year, there is one in particular that deserves the continued attention of the agency. Ferc order transmission planning and cost allocation frcc board briefing june 28, 2012. Ferc order issued in 2011 has stimulated increased interest in and use of competitive transmission procurement programs in the u. Transmission needs to be a bottomup process based on the needs of individual loadserving entities not topdown fiats state irp cant be preempted cost allocation must be roughly proportional to real and measurable. How many commissioners from each party can be in place.
For more news and information on the rapidly evolving energy industry, please sign up for the breaking energy newsletter. Order s goals remain unfulfilled implicit in order s requirements is this goal. An open letter on fercs new policy and procedural agenda r. Order 888 and order 889 were companion directives issued that unbundled electricity services, opened access to rate.
Distribution facilities defined by ferc functional test normally in close proximity to retail customers. Annual net wholesale market revenues per kw of storage. March 28, 2018 federal energy regulatory commission 888 first street northeast washington, dc 20426 dear chairman mcintyre and commissioners powelson, glick, chatterjee, and lafleur, the federal energy regulatory commission ferc has long stood for competition and political independence. The r street institute hopes new commission leadership will not only. Standards of conduct for transmission providers order no. Process for providing access to change files for qualified. Order interregional common tariff explanatory notes from filing parties june 20 transmittal letter 4. This incompleteness produces uncertainties, over how the ferc narrowed rofr will affect regional processes. On may 17, 2012, the federal energy regulatory commission ferc or commission issued an order on rehearing and clarification reaffirming its order no. To be successful in the ferc process, we recommend participating in isorto planning meetings, identifying potential projects, and learning. Order should remain a priority for ferc utility dive. The federal energy regulatory commission ferc introduced order in july 2011 and reaffirmed it in may and october 2012 with orders a and b.
This paper discusses the provisions of order, its application by isos, and examines the evidence to date. Order cost allocation overall philosophy is to allocate cost of the regional project to the entities that benefit from the project in proportion to the benefits received. Ferc regulates, monitors and investigates electricity, natural gas, hydropower, oil matters, natural gas pipelines, lng terminals, hydroelectric dams, electric. This article from the abas energy committees newsletter examines the us federal energy regulatory commissions ferc order, which addresses a wide range of policy issues, including provisions that may prove beneficial to advance transmission projects for renewable energy and other merchant power projects. Its most recent, order, has an air of finality that represents the closing of an era for the commission as much as it does the beginning of one for the industry. Under the sponsorship approach, when a transmission need is identified, eligible developers propose solutions that the region evaluates using fercapproved metrics. Evolution of the grid and creation of value at the foundation of the fercs order no. Rtosisos and others have filed processes for the implementation of ferc order and, in some cases, have ferc approval of those processes. Ferc order and public policy transmission projects. Er20857000 and er20858000 4 operating at 100 kv or above that are needed in order to comply with reliability. A strategic approach for ferc as a consultant for most of the major utilities and independent transmission developers in the us, we know that ferc is having a major impact in the industry. These provisions relate to limitations on incumbent utilities right of first. Ferc issued order 2000 on december 20, 1999, hoping to continue the industrywide momentum toward restructuring and open access that first started with its earlier orders. A transmission planning and cost allocation by transmission.
Nov 30, 2012 the federal energy regulatory commission ferc introduced order in july 2011 and reaffirmed it in may and october 2012 with orders a and b. In may 2015, iso new england began implementing changes to the regional and interregional transmission planning process to comply with the directives in order no. Pjm, isone and spp appear to be thwarting order s intent to open transmission projects to competition by abusing the immediate need exemption for reliability projects, ferc said. Fercs electric transmission planning and cost allocation requirements for public. Restructuring and reorganization of electric transmission markets from 1996 until present by nicolas adrian mctyre trial attorney with the federal energy regulatory commissions office of administrative litigation. This incompleteness produces uncertainties, over how the fercnarrowed rofr will affect regional processes. These uncertainties will receive attention during the current discussions over order compliance, as well as the ensuing implementation including ferc rulings on compliance filings and possible order revisions. The pjm competitive planning process implements ferc order. Order is seen by many as landmark energy legislation addressing both the transmissionplanning process and costallocation procedures for new electrical transmission lines. Its most recent, order , has an air of finality that represents the closing of an era for the commission as much as it does the beginning of one for the industry. Order narrows the right of first refusal will regional.
Introduction to the interregional transmission planning process narrative the western interconnection order no. Ferc order services on july 21, 2011, ferc issued order which, in conjunction with ferc order 890, requires coordinated, open and transparent regional transmission planning processes to address undue discrimination. Ferc gridplanning rule survives legal challenge, setting stage for transmission upgrades a court upholds order, fercs greenfriendly regional grid planning rule. Process for providing access to change files for qualified transmission providers confidential authorized access 5. An open letter on fercs new policy and procedural agenda. Ferc s elibrary will be modernized with a simpler design and better search and download capabilities that are backed by an upgraded and reliable architecture. White paper ferc order arket assessment 2019 page 2 of 12 in 1996, the federal energy regulatory commission ferc issued orders that laid the foundation to open the u. In july 2011, the federal energy regulatory commission ferc issued order no. Where a transmission provider seeks cost recovery for a transmission project, it must ensure that the project is the survivor of objective, headtohead comparisons with feasible alternative solutions, including nontransmission alternatives ntas. Required participation in the regional transmission planning process and development of regional cost allocation methods for new transmission facilities.
The most critical details will arise out of the compliance process, tariff changes and challenges to those changes. Concerns with order group of concerned utilities formed the coalition for fair transmission policy cftp cftp argued. Gerrard 2 this working paper will appear as an article in the november 2012 issue of the environmental law reporter. This paper discusses the provisions of order , its application by isos, and examines the evidence to date. Sce sought and received approval from ferc to recover stranded costs of already constructed transmission towers under ca iso order cost allocation plan, costs of undergrounding and stranded cost recovery will be added to postage stamp rate. A summary of ferc orders approved at its open meeting on nov. Transmission owners defended pjms, isones and spps designations of immediateneed reliability projects while states complained the rtos are frustrating ferc order s intent.
United states of america federal energy regulatory commission 18 cfr part 35 docket no. Competition for electric transmission projects in the u. The federal energy regulatory commission ferc is the united states federal agency that regulates the transmission and wholesale sale of electricity and natural gas in interstate commerce and regulates the transportation of oil by pipeline in interstate commerce. Final rule on transmission planning and cost allocation by transmission owning and operating public utilities. Toshiba understands these new guidelines and how to help energy providers leverage these changes to. Why ferc order is a big deal in the electric industry.
Of the various policies being considered by the federal energy regulatory commission ferc this year, there is one in particular that deserves the. Adding storage reduces that value as ancillary services get saturated. As a consultant for most of the major utilities and independent transmission developers in the us, we know that ferc is having a major impact in the industry. The process affords nonincumbent transmission developers an opportunity to participate in the regional planning and expansion of the pjm bulk electric system. Oct 25, 2018 regions as mandated under ferc order u. Which order established incentive based rate treatment. Identify the salient features of order processes for each region. The order established new electric transmission planning and cost allocation requirements for. Ferc gridplanning rule survives legal challenge, setting. Eisenhower signed the federalaid highway act of 1956, the vision for the interstate system was clearcreate a more efficient way for motorists to travel long distances through a network of highcapacity, highspeed motorways. Ensured demand response resources were compensated for services provided to. By publishing a set of criteria violations and soliciting solutions from competing transmission developers, pjm and the. Like isos, rtos encourage competitive generation markets by bringing all transmission control under independent entitys management. Intelligent utility magazine may june 2014 jim hoecker in mid20 intelligent utility asked for my personal top 5 observations about order no.
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