FERC finalizes transmission rule  

WASHINGTON — The Federal Energy Regulatory Commission (FERC) released its final rule on regional transmission planning and cost allocation today. The rule overhauls the process by which utilities across the country plan transmission expansion necessary to bring clean and cost-effective generation onto the grid.  

FERC’s Order No.1920 will require utilities to plan at least twenty years in the future, ensuring that the South’s transmission grid can accommodate expected changes to the generation mix, meet the growing load growth from data centers and electrification, and prevent service disruptions during extreme weather events.  

“FERC’s new rule is much needed fix to the South’s broken current regional transmission planning process,” said Nick Guidi, SELC senior attorney. “This mandate will mean more efficient transmission lines that strengthen connections between utility systems, harden the grid against extreme weather events, and increase access to lower-cost clean energy resources.”  

The Department of Energy’s National Transmission Needs Study, released last fall, found that the South must nearly double the size of its transmission grid by 2035 to meet expected load growth and new generation needs. Rather than expand the grid to enable cleaner and cheaper sources of power, Southern utilities in SELC’s region plan to add nearly 33,000 megawatts of new gas-fired power plants by 2038, with TVA and Duke Energy planning two of the country’s largest new methane gas buildouts. FERC’s new rule will have a massive impact on Southern communities and the South’s energy future by requiring smarter and more inclusive planning that demonstrates the benefits of avoiding long-term investment in harmful gas resources.