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Federal Transmission
The federal government plays a pivotal role in shaping the future of our nation’s energy grid. Through oversight, funding, and regulatory action, federal agencies ensure that transmission infrastructure evolves to meet the demands of a modern, clean, and reliable energy system. This page explores the key roles of federal entities, the challenges and opportunities in transmission planning, and the critical policies driving progress, such as FERC Order No. 1920.
What is the role of the Federal Government in Transmission Planning?
Our electricity grid is essential to modern life, connecting power sources to homes, businesses, and communities. Effective regional transmission planning is crucial for integrating renewable energy sources, enhancing grid reliability, and reducing congestion. This planning fosters better coordination among stakeholders, leading to more efficient project execution and significant cost savings by optimizing the use of existing infrastructure and avoiding unnecessary duplication.
However, the current transmission planning process faces significant challenges that must be addressed to ensure a reliable, resilient, and sustainable energy future.
The current transmission planning process faces several significant challenges. Regulatory hurdles and lengthy approval processes often delay the development of critical infrastructure. Securing sufficient investment for large-scale projects is another major challenge due to funding limitations. Additionally, public opposition, frequently driven by concerns about environmental impact and land use, can create barriers to project implementation.
Governmental Roles in Transmission Planning
Federal: FERC oversees local and regional planning, cost allocation, and rate regulation. The Department of Energy (DOE) provides funding, research, and state technical assistance, while federal lands agencies grant rights-of-way and perform environmental reviews.
RTOs: RTOs coordinate transmission across multiple states, ensuring grid reliability, managing electricity markets, and overseeing interconnection for new energy projects like wind and solar. For details on regions like PJM, MISO, and CAISO, review the Electric Power Markets found on the FERC website.
State: State legislatures grant eminent domain authority and establish siting authorities. Public Utility Commissions (PUCs) handle siting, permitting, and cost recovery. Departments of Environmental Protection (DEPs) conduct environmental reviews and permitting.
Local: Counties and municipalities may hold siting and permitting authority in certain states.
FERC Order No. 1920 and Its Impact
FERC Order No. 1920, issued on May 13, 2024, is a pivotal step in improving the transmission planning process. This order directs Regional Transmission Organizations (RTOs) to conduct long-term, scenario-based regional transmission planning, expand consideration of the drivers of needed transmission, and reform the cost allocation process for transmission projects. By requiring the consideration of advanced transmission technologies, the order aims to accelerate the development of much-needed transmission infrastructure.