The 4th Circuit Court of Appeals is set to review challenges to FERC’s 2024 regulation, known as “Order 1920,” which aims to improve transmission planning and cost allocation in the Southeast. The Southern Alliance for Clean Energy (SACE), along with several other advocacy groups, has called for enhancements to this order while supporting its implementation.
### Key Points
#### Need for Enhanced Transmission
– The U.S. electrical grid requires more transmission capacity to cope with increased demand, diverse energy sources, and extreme weather events.
– High-voltage transmission lines help facilitate this by efficiently transporting electricity over long distances, thereby reducing costs compared to piecemeal solutions.
#### Issues in the Southeast
– Current regional planning led by Southeastern Regional Transmission Planning (SERTP) lacks coordination. Utilities tend to prioritize local transmission projects over regional needs, which limits cost-effective solutions and shared resources.
– SERTP’s short-term outlook and restricted evaluations have led to inefficient investments, not addressing long-term needs effectively.
#### FERC’s Role and Order 1920
– FERC’s Order 1920 aims for holistic regional planning but leaves much of the previous system (Order 1000) unchanged. This could undermine the long-term benefits by allowing utilities to continue their piecemeal construction of lower-voltage lines.
– The order requires utilities to evaluate regional alternatives, develop longer-term projections for future electricity needs, and explain any rejected solutions publicly.
#### Urgency and Next Steps
– There’s a pressing need for effective planning as energy demands rapidly rise. SACE supports fulfilling Order 1920’s current aims while advocating for further improvements.
– A court order mandating enhancements to Order 1920 would be beneficial for utility customers in the Southeast, as delays would allow inefficient utility investments to continue.
In summary, while Order 1920 is seen as a crucial step towards better transmission planning, its full potential may only be realized through necessary tweaks and integration with existing planning processes.
