FERC Announces Change to Order No. 1920 with extensive state regulations

FERC has affirmed its long-term transmission planning rule, Order no. 1920with changes to strengthen the ability of state regulators to participate in the long-term regional transmission planning process.

The decision is in response to requests for repetition and clarification of Order No. 1920, approved in May 2024. It will provide state regulators with greater opportunities to be involved in the new process of planning and payment for transmission facilities in regions throughout the country to improve the future demand for electricity will increase.

Order No. 1920-A requires transmission providers to conduct long-term planning for regional transmission facilities over a twenty-year period to predict future needs and determine payment for the transmission facilities. It also provides cost-effective transmission expansion that is replaced when necessary, known as right-sizing transmission facilities.

The changes in the rehearsal order strengthen the role of state regulators in the long-term regional transmission planning process, especially in determining scenario development and cost allocation. The order also clarifies that FERC must extend the engagement period for cost allocation discussions for up to six additional months, upon request by state regulators.