FERC Order No. 1920 “provides states with an opportunity to lead” says Advanced Energy United 

WASHINGTON, DC - A few states and entities have filed rehearing requests seeking to undo the Federal Energy Regulatory Commission (FERC) decision to improve the rules for how the U.S. plans and pays for long-distance transmission lines. The filings appear to reflect a misunderstanding about how FERC Order No. 1920 will impact states. Rather than sideline the states, as the filings suggest, the FERC order provides a new, formalized process by which states have a role in transmission planning. 

“Households and businesses pay the price when we play politics with our electricity system,” said Amisha Rai, Vice President of Policy and Advocacy Advanced Energy United. “We need states to work together to make the system stronger so that residents don't fall victim to another blackout as we all witnessed during Winter Storm Uri.”

Under the new rules that grid operators and utilities will be required to comply with, no state will pay to support another state’s public policy goals, and states will have a seat at the table in determining benefits and costs. The Order specifically states that no customer will pay for a transmission facility if they do not benefit from it.

Several states are already taking action to build on the new FERC Order to push for better regional transmission planning practices. This week, the Governors of New Jersey, Pennsylvania, Maryland, and Illinois sent a letter to the grid operator PJM calling on it to develop a robust process for states and other stakeholders to engage on planning decisions and comply with the FERC Order. The letter says in part, “FERC Order No. 1920 envisions a clear collaboration between the grid operator and state policymakers to identify long-range planning scenarios that incorporate state policy priorities.” 

“The Order empowers states to work with their regional partners and grid operator, acknowledging the critical role of states in implementation,” added Rai. “State regulatory commissions have an opportunity to reduce system costs and build a more reliable system. We call on them to focus on constructive engagement instead of kicking the can down the road.” 

Click here to learn more about Advanced Energy United's work engaging with FERC and advocating for the expansion of wholesale markets.