Building for the Future Through Electric Regional Transmission Planning and Cost Allocation

Key metadata

Document number

2025-06941

Type

Rule

Publication date

2025-04-28

Effective date

2025-01-06

Agencies

Energy Department, Federal Energy Regulatory Commission

CFR references

18 CFR part 35

Original source

Federal Register

U.S. FERC Transmission Planning Reforms Effective January 6, 2025

The Federal Energy Regulatory Commission (FERC) has confirmed that its major reforms to U.S. transmission planning and cost allocation will take effect on January 6, 2025. This order addresses final rehearing requests and provides some clarifications, but the core requirements of Order No. 1920 (as clarified by 1920-A) remain in place.

Why it matters

Mandatory Long-Term Regional Planning: Transmission providers must now conduct long-term assessments (beyond 20 years) of grid needs. This is crucial for proactively identifying where new transmission, or non-transmission alternatives like large-scale battery storage, will be needed to integrate future clean energy and address grid reliability. Broader Benefits Considered: Planning must now account for a wider range of benefits, including improved grid resilience, reduced congestion, and the ability to integrate more renewable energy. This expanded view of benefits could make a stronger case for projects that include or enable battery storage solutions. Cost Allocation Reforms: The order establishes new principles for allocating the costs of regional transmission projects. While specific details are still being worked out in regional processes, the goal is to ensure costs are allocated fairly to those who benefit, which can impact the economic viability of connecting new generation, including battery storage. Opportunity for Battery Storage: These reforms create a framework where grid-scale battery storage can be more effectively considered as a "more efficient or cost-effective regional transmission solution" or a non-transmission alternative to traditional lines, especially in addressing long-term grid needs and enhancing resilience.

Who is affected

Transmission owners and operators (utilities, RTOs/ISOs) must implement these new planning processes. Developers of generation, including battery storage and renewable energy projects, will benefit from a more transparent and forward-looking grid planning process.

Key timing

The new rules for long-term regional transmission planning and cost allocation become effective on January 6, 2025. Transmission providers will need to begin implementing these processes shortly thereafter.