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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