Understanding FERC’s Order 1920

CIN Admin
CIN Admin
  • Updated
Resource Type Policy Brief
Author / Source Claire Wayner (RMI)
Publication Date November 2024
Location United States
Initiative Type Policy, Program
Project Complexity Intermediate
Recommended For Board, Staff

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Estimated reading time: 15 minutes


Why This Matters for Rural Electric Co-ops

FERC Order 1920 introduces major reforms to how regional transmission planning is conducted in the United States. For rural electric cooperatives, the rule could shape long-term transmission investments, regional planning requirements, and cost allocation approaches that ultimately affect wholesale power costs. Understanding the rule helps co-op leaders anticipate regulatory shifts that may influence reliability, transmission access, and future grid investment.


Key Takeaways

› Order 1920 requires transmission planners to conduct long-term regional planning over at least a 20-year horizon.
› Planning must evaluate multiple scenarios reflecting electrification, policy changes, and resource retirements.
› Transmission planners must quantify multiple reliability and economic benefits when evaluating projects.
› States and stakeholders will play a larger role in determining cost allocation approaches for new transmission projects.

Implementation Considerations

  • Regulatory or Governance Considerations: Co-ops should monitor regional planning processes and participate, where possible, because transmission costs may flow through wholesale power rates.

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Estimated reading time: 15 minutes

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