FERC’s Order 1920 on Transmission Planning

In May 2024, FERC issued Order 1920 on long-term transmission planning and cost allocation. The rule will require transmission operators to conduct and periodically update long-term regional transmission planning over a 20-year time period to anticipate future needs. This planning process will consider various factors (including utility resource plans, state climate and energy goals, and interconnection queues) that will impact transmission needs, energy demand, and the grid’s mix of energy resources. Transmission operators must also consider seven economic and reliability benefits when considering regional transmission projects to determine whether any identified proposals will efficiently and cost-effectively address long-term transmission needs.