FERC expands states’ role in regional transmission planning, cost allocation

FERC granted the “vast majority” of the changes state utility regulators were seeking in their rehearing requests, according to Kent Chandler, a resident senior fellow in energy and environmental policy at the R Street Institute.

In some cases, FERC found “roundabout ways” to address state concerns, said Chandler, who was the Kentucky Public Service Commission chairman and president of the Organization of PJM States when rehearing requests were filed. Some states, for example, wanted FERC to only approve cost allocation methodologies approved by states, he said. Instead, FERC required transmission providers to file state-approved methodologies to be considered alongside any transmission provider proposals, he said.

FERC also required transmission providers to provide detailed reports on their discussions with states about cost allocation, which will give the agency more information when they review those proposals, Chandler said.

FERC’s ability to reach a 4-0 decision on the rehearing requests bodes well for the agency heading into next year, according to Chandler.

“It provides me confidence going forward for the agency that they were willing to work so well together and come up with an outcome that made everyone happy,” Chandler said. “I have a lot of confidence that if we keep all five of these commissioners through the next year, that they can get a lot done and ensure that it’s done in a bipartisan way that ensures that it is sustainable.”