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FERC issues new rules on transmission planning and cost allocation – local zoning control unaffected

On Thursday, July 21, the Federal Energy Regulation Commission issued a Final Rule that reforms the Commission’s electric transmission planning and cost allocation requirements for public utility transmission providers. While the rule is intended to address cross-jurisdictional transmission line issues to help promote the use of the renewable energy by ensuring that once sited, the energy generated can be connected to the grid, local control over siting decisions remains intact.    

The rule establishes three requirements for transmission planning:

The rule establishes three requirements for transmission cost allocation:

Nonincumbent Developer Reforms

  • The rule recognizes that incumbent transmission providers may rely on regional transmission facilities to satisfy their reliability needs or service obligations. The rule requires each public utility transmission provider to amend its tariff to require reevaluation of the regional transmission plan to determine if delays in the development of a transmission facility require evaluation of alternative solutions, including those proposed by the incumbent, to ensure incumbent transmission providers can meet reliability needs or service obligations.
  • Compliance

    Read a summary by the New York Times here: http://www.nytimes.com/2011/07/22/science/earth/22grid.html?scp=1&sq=%22Federal%20Energy%20Regulatory%20Commission%22&st=cse

    For an article discussing the need for greater cooperation to promote siting and transmission of renewable energy, click here