<RULE>
DEPARTMENT OF ENERGY
<SUBAGY>Federal Energy Regulatory Commission</SUBAGY>
<CFR>18 CFR Part 35</CFR>
<DEPDOC>[Docket No. RM21-17-000; Order No. 1920]</DEPDOC>
<SUBJECT>Building for the Future Through Electric Regional Transmission Planning and Cost Allocation</SUBJECT>
<HD SOURCE="HED">AGENCY:</HD>
Federal Energy Regulatory Commission, Department of Energy.
<HD SOURCE="HED">ACTION:</HD>
Final order.
<SUM>
<HD SOURCE="HED">SUMMARY:</HD>
The Federal Energy Regulatory Commission (Commission) revises the
<E T="03">pro forma</E>
Open Access Transmission Tariff (OATT) to remedy deficiencies in the Commission's existing regional and local transmission planning and cost allocation requirements. In this final order, the Commission requires transmission providers to conduct Long-Term Regional Transmission Planning that will ensure the identification, evaluation, and selection, as well as the allocation of the costs, of more efficient or cost-effective regional transmission solutions to address Long-Term Transmission Needs. The Commission also directs other reforms to improve coordination of regional transmission planning and generator interconnection processes, require consideration of certain alternative transmission technologies in regional transmission planning processes, and improve transparency of local transmission planning processes and coordination between regional and local transmission planning processes. These reforms are intended to ensure that existing regional and local transmission planning and cost allocation requirements are just, reasonable, and not unduly discriminatory or preferential.
</SUM>
<EFFDATE>
<HD SOURCE="HED">DATES:</HD>
This final order is effective August 12, 2024.
</EFFDATE>
<FURINF>
<HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
David Borden (Technical Information), Office of Energy Policy and Innovation, 888 First Street NE, Washington, DC 20426, (202) 502-8734,
<E T="03">david.borden@ferc.gov</E>
.
Noah Lichtenstein (Technical Information), Office of Energy Market Regulation, 888 First Street NE, Washington, DC 20426, (202) 502-8696,
<E T="03">noah.lichtenstein@ferc.gov</E>
.
Michael Kellermann (Legal Information), Office of the General Counsel, 888 First Street NE, Washington, DC 20426, (202) 502-8491,
<E T="03">michael.kellermann@ferc.gov</E>
.
</FURINF>
<SUPLINF>
<HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
<HD SOURCE="HD1">Table of Contents</HD>
<EXTRACT>
<GPOTABLE COLS="2" OPTS="L0,nj,tp0,g1,t1,i1" CDEF="s200,12">
<TTITLE> </TTITLE>
<CHED H="1"> </CHED>
<CHED H="1">Paragraph Nos.</CHED>
<ROW>
<ENT I="01">I. Introduction and Background</ENT>
<ENT>1</ENT>
</ROW>
<ROW>
<ENT I="03">A. Historical Framework: Order Nos. 888, 890, and 1000</ENT>
<ENT>14</ENT>
</ROW>
<ROW>
<ENT I="03">B. ANOPR and Technical Conference</ENT>
<ENT>20</ENT>
</ROW>
<ROW>
<ENT I="03">C. Joint Federal-State Task Force on Electric Transmission</ENT>
<ENT>22</ENT>
</ROW>
<ROW>
<ENT I="03">D. Notice of Proposed Rulemaking</ENT>
<ENT>26</ENT>
</ROW>
<ROW>
<ENT I="03">E. High-Level Overview of NOPR Comments</ENT>
<ENT>36</ENT>
</ROW>
<ROW>
<ENT I="03">F. Use of Terms</ENT>
<ENT>37</ENT>
</ROW>
<ROW>
<ENT I="01">II. The Overall Need for Reform</ENT>
<ENT>47</ENT>
</ROW>
<ROW>
<ENT I="03">A. NOPR Proposal</ENT>
<ENT>47</ENT>
</ROW>
<ROW>
<ENT I="03">B. Comments</ENT>
<ENT>49</ENT>
</ROW>
<ROW>
<ENT I="03">C. Commission Determination</ENT>
<ENT>85</ENT>
</ROW>
<ROW>
<ENT I="05">1. The Transmission Investment Landscape Today</ENT>
<ENT>90</ENT>
</ROW>
<ROW>
<ENT I="05">2. Unjust, Unreasonable, and Unduly Discriminatory or Preferential Commission-Jurisdictional Transmission Planning and Cost Allocation Processes</ENT>
<ENT>112</ENT>
</ROW>
<ROW>
<ENT I="05">3. Benefits of Long-Term Regional Transmission Planning and Cost Allocation To Identify and Plan for Long-Term Transmission Needs</ENT>
<ENT>134</ENT>
</ROW>
<ROW>
<ENT I="05">4. Conclusion</ENT>
<ENT>139</ENT>
</ROW>
<ROW>
<ENT I="01">III. Long-Term Regional Transmission Planning</ENT>
<ENT>140</ENT>
</ROW>
<ROW>
<ENT I="03">A. Requirement To Participate in Long-Term Regional Transmission Planning</ENT>
<ENT>140</ENT>
</ROW>
<ROW>
<ENT I="05">1. NOPR Proposal </ENT>
<ENT>140</ENT>
</ROW>
<ROW>
<ENT I="05">2. Comments </ENT>
<ENT>145</ENT>
</ROW>
<ROW>
<ENT I="07">a. General Comments </ENT>
<ENT>145</ENT>
</ROW>
<ROW>
<ENT I="07">b. Requests for Flexibility in Transmission Planning </ENT>
<ENT>151</ENT>
</ROW>
<ROW>
<ENT I="07">c. Comments Regarding More Comprehensive Transmission Planning </ENT>
<ENT>163</ENT>
</ROW>
<ROW>
<ENT I="07">d. Concerns Regarding Favoring Renewable Resources </ENT>
<ENT>172</ENT>
</ROW>
<ROW>
<ENT I="07">e. Concerns Regarding Uncertainty, Over-Building, and Costs </ENT>
<ENT>176</ENT>
</ROW>
<ROW>
<ENT I="07">f. Concerns Regarding Incentives for Resource Development </ENT>
<ENT>187</ENT>
</ROW>
<ROW>
<ENT I="07">g. Comments Regarding Definition of Long-Term Regional Transmission Facility </ENT>
<ENT>189</ENT>
</ROW>
<ROW>
<ENT I="07">h. Challenges to Commission Jurisdiction or Authority </ENT>
<ENT>190</ENT>
</ROW>
<ROW>
<ENT I="07">i. Other Issues </ENT>
<ENT>215</ENT>
</ROW>
<ROW>
<ENT I="07">j. Miscellaneous Concerns </ENT>
<ENT>217</ENT>
</ROW>
<ROW>
<ENT I="05">3. Commission Determination </ENT>
<ENT>224</ENT>
</ROW>
<ROW>
<ENT I="07">a. Participation in Long-Term Regional Transmission Planning </ENT>
<ENT>224</ENT>
</ROW>
<ROW>
<ENT I="07">b. Definition of Long-Term Regional Transmission Facility </ENT>
<ENT>250</ENT>
</ROW>
<ROW>
<ENT I="07">c. Legal Authority To Adopt Reforms for Long-Term Regional Transmission Planning </ENT>
<ENT>253</ENT>
</ROW>
<ROW>
<ENT I="03">B. Development of Long-Term Scenarios </ENT>
<ENT>284</ENT>
</ROW>
<ROW>
<ENT I="05">1. NOPR Proposal </ENT>
<ENT>284</ENT>
</ROW>
<ROW>
<ENT I="05">2. Comments </ENT>
<ENT>286</ENT>
</ROW>
<ROW>
<ENT I="07">a. General Comments </ENT>
<ENT>286</ENT>
</ROW>
<ROW>
<ENT I="07">b. Applying Scenario Planning to Reliability and Economic Planning </ENT>
<ENT>296</ENT>
</ROW>
<ROW>
<ENT I="05">3. Commission Determination </ENT>
<ENT>298</ENT>
</ROW>
<ROW>
<ENT I="03">C. Long-Term Scenarios Requirements </ENT>
<ENT>307</ENT>
</ROW>
<ROW>
<ENT I="05">1. Transmission Planning Horizon </ENT>
<ENT>307</ENT>
</ROW>
<ROW>
<ENT I="07">a. NOPR Proposal </ENT>
<ENT>307</ENT>
</ROW>
<ROW>
<ENT I="07">b. Comments </ENT>
<ENT>309</ENT>
</ROW>
<ROW>
<ENT I="07">c. Commission Determination </ENT>
<ENT>344</ENT>
</ROW>
<ROW>
<ENT I="05">2. Frequency of Long-Term Scenario Revisions </ENT>
<ENT>352</ENT>
</ROW>
<ROW>
<ENT I="07">a. NOPR Proposal </ENT>
<ENT>352</ENT>
</ROW>
<ROW>
<ENT I="07">b. Comments </ENT>
<ENT>354</ENT>
</ROW>
<ROW>
<ENT I="07">c. Commission Determination </ENT>
<ENT>377</ENT>
</ROW>
<ROW>
<ENT I="05">3. Categories of Factors </ENT>
<ENT>387</ENT>
</ROW>
<ROW>
<ENT I="07">a. Requirement To Incorporate Categories of Factors </ENT>
<ENT>387</ENT>
</ROW>
<ROW>
<ENT I="07">b. Specific Categories of Factors </ENT>
<ENT>422</ENT>
</ROW>
<ROW>
<ENT I="07">c. Treatment of Specific Categories of Factors </ENT>
<ENT>495</ENT>
</ROW>
<ROW>
<ENT I="07">d. Stakeholder Process and Transparency </ENT>
<ENT>519</ENT>
</ROW>
<ROW>
<ENT I="05">4. Number and Development of Long-Term Scenarios </ENT>
<ENT>538</ENT>
</ROW>
<ROW>
<ENT I="07">a. NOPR Proposal </ENT>
<ENT>538</ENT>
</ROW>
<ROW>
<ENT I="07">b. Comments </ENT>
<ENT>541</ENT>
</ROW>
<ROW>
<ENT I="07">c. Commission Determination </ENT>
<ENT>559</ENT>
</ROW>
<ROW>
<ENT I="05">5. Types of Long-Term Scenarios </ENT>
<ENT>564</ENT>
</ROW>
<ROW>
<ENT I="07">a. NOPR Proposal </ENT>
<ENT>564</ENT>
</ROW>
<ROW>
<ENT I="07">b. Comments </ENT>
<ENT>566</ENT>
</ROW>
<ROW>
<ENT I="07">c. Commission Determination </ENT>
<ENT>575</ENT>
</ROW>
<ROW>
<ENT I="05">6. Sensitivities for High-Impact, Low-Frequency Events</ENT>
<ENT>578</ENT>
</ROW>
<ROW>
<ENT I="07">a. NOPR Proposal </ENT>
<ENT>578</ENT>
</ROW>
<ROW>
<ENT I="07">b. Comments </ENT>
<ENT>580</ENT>
</ROW>
<ROW>
<ENT I="07">c. Commission Determination </ENT>
<ENT>593</ENT>
</ROW>
<ROW>
<ENT I="05">7. Specificity of Data Inputs </ENT>
<ENT>602</ENT>
</ROW>
<ROW>
<ENT I="07">a. NOPR Proposal </ENT>
<ENT>602</ENT>
</ROW>
<ROW>
<ENT I="07">b. Comments </ENT>
<ENT>606</ENT>
</ROW>
<ROW>
<ENT I="07">c. Commission Determination </ENT>
<ENT>633</ENT>
</ROW>
<ROW>
<ENT I="05">8. Identification of Geographic Zones </ENT>
<ENT>645</ENT>
</ROW>
<ROW>
<ENT I="07">a. NOPR Proposal </ENT>
<ENT>645</ENT>
</ROW>
<ROW>
<ENT I="07">b. Comments </ENT>
<ENT>650</ENT>
</ROW>
<ROW>
<ENT I="07">c. Commission Determination </ENT>
<ENT>665</ENT>
</ROW>
<ROW>
<ENT I="03">D. Evaluation of the Benefits of Regional Transmission Facilities </ENT>
<ENT>667</ENT>
</ROW>
<ROW>
<ENT I="05">1. Requirement for Transmission Providers To Use a Set of Seven Required Benefits </ENT>
<ENT>669</ENT>
</ROW>
<ROW>
<ENT I="07">a. NOPR Proposal </ENT>
<ENT>669</ENT>
</ROW>
<ROW>
<ENT I="07">b. Comments </ENT>
<ENT>673</ENT>
</ROW>
<ROW>
<ENT I="07">c. Commission Determination </ENT>
<ENT>719</ENT>
</ROW>
<ROW>
<ENT I="05">2. Required Benefits </ENT>
<ENT>740</ENT>
</ROW>
<ROW>
<ENT I="07">a. The Seven Required Benefits </ENT>
<ENT>740</ENT>
</ROW>
<ROW>
<ENT I="05">3. Identification, Measurement, and Evaluation of the Benefits of Long-Term Regional Transmission Facilities </ENT>
<ENT>823</ENT>
</ROW>
<ROW>
<ENT I="07">a. NOPR Proposal </ENT>
<ENT>823</ENT>
</ROW>
<ROW>
<ENT I="07">b. Comments </ENT>
<ENT>824</ENT>
</ROW>
<ROW>
<ENT I="07">c. Commission Determination </ENT>
<ENT>837</ENT>
</ROW>
<ROW>
<E
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