Presentation | Building for the Future Through Electric Regional Transmission Planning and Cost Allocation and Generator Interconnection

Docket No. RM21-17-000 
Item E-1 | News Launch

Very good early morning, Chairman Glick and Commissioners,

Merchandise E-1 is a draft Recognize of Proposed Rulemaking [NOPR], issued pursuant to portion 206 of the Federal Electricity Act, to reform the Commission’s electric regional transmission scheduling and value allocation demands.  The proposed reforms are supposed to solution deficiencies in the Commission’s present regional transmission scheduling and price tag allocation needs to ensure that Fee-jurisdictional charges continue being just and fair and not unduly discriminatory or preferential.

Today’s draft NOPR builds on Buy Nos. 888, 890, and 1000, in which the Commission incrementally made the specifications that govern regional transmission planning and value allocation processes to ensure that Fee-jurisdictional rates continue being just and realistic and not unduly discriminatory or preferential.

With regard to regional transmission organizing, the reforms proposed in this draft NOPR would call for community utility transmission providers to carry out Very long-Expression Regional Transmission Arranging on a adequately forward-wanting basis to meet up with transmission requirements pushed by changes in the source mix and demand from customers.  As aspect of this very long-term regional transmission arranging, community utility transmission companies would be needed to:  (1) detect transmission wants pushed by changes in the resource combine and demand from customers through the development of very long-expression situations, such as accounting for superior-effect, minimal-frequency situations this sort of as excessive temperature (2) consider the positive aspects of regional transmission amenities to fulfill these wants more than a time horizon that covers, at a minimum 20 years starting up from the approximated in-support day of the transmission services and, (3) create transparent and not unduly discriminatory criteria to find transmission amenities in the regional transmission approach for functions of price tag allocation that a lot more successfully or cost-efficiently handle these transmission demands.  Moreover, the draft NOPR proposes to involve that general public utility transmission suppliers much more entirely take into account dynamic line scores and advanced power move command units in regional transmission organizing.

With respect to transmission value allocation, the reforms proposed in this draft NOPR would have to have that public utility transmission vendors in every transmission setting up region seek out to receive the arrangement of applicable point out entities inside of the transmission organizing region about the price allocation strategy or procedures that will apply to transmission facilities selected in the regional transmission strategy for uses of price tag allocation by means of extended-phrase regional transmission scheduling and revise their OATTs to consist of those people methods.

The draft NOPR also proposes to not permit community utility transmission companies to take gain of the design-do the job-in-progress (CWIP) incentive for transmission facilities selected in the regional approach for functions of cost allocation by very long-expression regional transmission organizing.

With respect to federal legal rights of very first refusal, the draft NOPR proposes to amend Purchase No. 1000’s specifications, in component, to allow the workout of federal rights of very first refusal for transmission services selected in a regional transmission approach for purposes of cost allocation, conditioned on the incumbent transmission supplier developing joint ownership of the transmission amenities.

With respect to transparency and coordination, the draft NOPR proposes to involve general public utility transmission companies to adopt increased transparency requirements for nearby transmission planning procedures and enhance coordination involving regional and area transmission organizing with the intention of figuring out likely opportunities to “right-size” alternative transmission facilities.

With respect to interregional transmission coordination and price tag allocation, the reforms proposed in this draft NOPR would require that public utility transmission suppliers revise their current interregional transmission coordination techniques to replicate the extensive-term regional transmission planning reforms proposed in this draft NOPR.

The proposed reforms in this draft NOPR similar to regional transmission organizing and charge allocation requirements, are focused on the transmission arranging method, and not on any substantive outcomes that might final result from this process.  Taken alongside one another, the reforms proposed in this draft NOPR would do the job to treatment deficiencies in the Commission’s present regional transmission arranging and charge allocation prerequisites.  This, in convert, would satisfy the Commission’s statutory obligation to be certain that Commission-jurisdictional costs keep on being just and affordable and not unduly discriminatory or preferential.

The draft NOPR seeks comment on the proposed reforms and encourages commenters to establish enhancements to these reforms that could much better guidance growth of a lot more successful or price-powerful transmission services.

Thank you, this concludes our presentation.  We are happy to address any inquiries.