Federal Energy Regulatory Commission Transmission Update - Nov. 3, 2023
FERC, led by Director Rob Thormeyer, regulates natural gas wholesale facilities, interstate pipelines, onshore LNG facilities, wholesale electric market rates, and more. The Commission consists of five appointed Commissioners overseeing key initiatives like transmission planning proposals and interconnection queue reforms. Upcoming events include ReliabilityWeek! and open Commission meetings. Priority transmission items such as interconnection queue reform and backstop transmission siting proposed rulemaking are in progress, reflecting FERC's commitment to reliability and oversight in the energy sector.
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Federal Energy Regulatory Commission Transmission Update Rob Thormeyer, Director State, International, and Tribal Affairs Division Nov. 3, 2023
DISCLAIMER: Speaking on my own behalf and my comments do not necessarily reflect the views of the Commission, individual Commissioners, or other Commission staff members
About FERC FERC regulates natural gas wholesale facilities Considers applications to build interstate pipelines, onshore LNG facilities and underground storage facilities that are tied to the wholesale market Regulates the rates/tariffs of pipelines on a contract basis FERC regulates the wholesale electric market Sets rates/tariffs for wholesale transactions on interstate lines (100 KV and higher) Siting for transmission lines is primarily done at the state level Backstop siting proposed rule and IIJA FERC oversees NERC reliability standards, including cybersecurity FERC provides licenses for non-federal hydro facilities (about half of all hydro in the U.S.) 3
About FERC, cont. Five Commissioners, appointed by the President, confirmed by the Senate for staggered five-year terms Chairman Willie Phillips (D) Commissioner James Danly (R) Commissioner Allison Clements (D) Commissioner Mark Christie (R) Vacancy 4
Upcoming Events #ReliabilityWeek! Nov. 9 Reliability Technical Conference Winter Storm Elliott Final Report Coming soon! 2024 Open Commission Meetings Nov. 16 Agenda published on Nov. 9 Dec. 19 5
Priority Transmission Items Interconnection Queue Reform Finalized in July 2023 Published in Federal Register, Sept. 6, 2023 Compliance Filings Due: April 3, 2024 Backstop Transmission Siting Proposed Rulemaking Still in rulemaking process Long-Term Transmission Planning Proposed Rulemaking Still in rulemaking process 6
Improvements to Generator Interconnection Procedures and Agreements (Order 2023) Finalized July 27, 2023; Published in Federal Register Sept. 6, 2023 Requires all utilities to adopt generator interconnection procedures & agreements to enable interconnection customers (generators) to connect their project to the grid in a reliable, efficient, transparent, and timely manner, and to prevent undue discrimination Huge order literally and figuratively: approximately 1480 pages! Slide 7
Improvements to Generator Interconnection Procedures and Agreements (Order 2023) Cluster Study Process Streamlines process by requiring transmission providers (utilities, RTOs) to conduct larger studies consisting of numerous generating facilities, rather than separate studies for each facility instead of first-come, first served it is now first ready, first served Speed Up Interconnection Queue Processing Requires firm deadlines and establishes penalties if transmission providers do not complete interconnection studies on time Incorporate Technological Advancements into the Interconnection Process Permits flexibility for generators by allowing more than one generating facility to co-locate on a shared site behind a single interconnection point and requiring realistic operating assumptions for storage resources Requires consideration of alternative transmission technologies Slide 8
Improvements to Generator Interconnection Procedures and Agreements (Order 2023) Next Steps Rehearing Requests filed, currently under consideration Commission Action, TBD Publication of Order 2023 in Federal Register, Sept. 6, 2023 Transmission Provider compliance filings due, April 3, 2024 Slide 9
Backstop Transmission Siting Proposal Issued Dec. 15, 2022, Docket No. RM22-7-000 (181 FERC 61,205), in response to Infrastructure Investment and Jobs Act of 2021 Proposes to revise the Commission s regulations governing applications for permits to site electric transmission facilities under section 216 of the Federal Power Act (FPA) For a transmission project to be subject to this authority, it must be so designated by the Department of Energy After DOE designation, backstop authority triggered if a state has either: not acted on a transmission siting application for a transmission project more than one year after filing or outright denied an application Slide 10
Long-Term Grid Planning Proposal Issued April 21, 2022, Docket No. RM21-17-000 Transmission Providers Would Be Required to: Conduct regional transmission planning on a sufficiently long-term, forward looking basis Identify grid needs through long-term scenarios incorporating minimum set of factors, including federal, state, local laws & regulations impacting the future resource mix Seek agreement of relevant state entities in transmission planning region regarding cost- allocation for facilities selected as part of long-term regional planning Establish a cost allocation method for transmission facilities selected as part of long-term regional grid planning that is ex ante cost-allocation method or state-agreement process Would amend Order 1000 Right of First Refusal requirements to allow transmission providers federal rights for transmission facilities selected through a regional plan for cost-allocation purposes, provided that incumbent transmission provider establishes joint ownership Slide 11
About the Office of External Affairs FERC s primary contact point with Congress, the States, Tribal governments, International governments, the public, and the media Three divisions Congressional Affairs Media Relations State, International, Tribal Affairs (SITA) SITA Responsible for communicating Commission activities/decisions/events to state, local, Tribal, and international governments Briefings, emails, conferences, meetings assistance 12
Office of Public Participation Email: OPP@ferc.gov Phone: (202) 502-6595 www.ferc.gov/OPP WorkshOPPs Intervention in FERC proceedings Natural Gas Pre-Filing Review Process Tips for Powerful Comments Technical Assistance Explainers/Educational Resources Order 2023/Interconnection Energy Markets Energy Projects 13
Questions? Rob Thormeyer Director, State, International, and Tribal Affairs Division Federal Energy Regulatory Commission Robert.Thormeyer@ferc.gov 202-502-8694 (office) 202-465-5717 (cell) 14
