FERC Order 2023

In 2023, the Federal Energy Regulatory Commission (FERC) released Order No. 2023, directing transmission providers to improve their interconnection processes, primarily by instituting a first-ready first-served cluster study process, increased readiness requirements for interconnection projects, and firm deadlines for study completion.

Generally, the final rule will require transmission providers to study projects in batches or “clusters,” such that the new approach is often called a “cluster study process.” Other changes include penalties for transmission providers that fail to complete studies on time, stricter financial readiness and site control requirements for interconnection customers that are intended to discourage speculative projects, and measures that could make it easier to integrate generating facilities with unique operating characteristics, such as battery storage projects, into the transmission system. The final rule thus streamlines the interconnection process to ensure that new generation, especially generation representing advanced technologies, can connect to the transmission system in a timely manner.