Event: Electric Transmission Reform: The Promise and Pitfalls of FERC’s Proposed Rule
Flawed transmission regulation gridlocks the clean transition, stifles innovation and raises consumer costs by billions annually. This has made transmission reform a top priority for the White House, Congress, the Federal Energy Regulatory Commission (FERC) and state authorities. In April 2022, FERC issued a notice of proposed rulemaking (NOPR) to reform transmission regulation profoundly. The NOPR contains many provisions, including requiring transmission planning on a forward-looking basis, seeking agreement among state entities and allowing incumbent transmission owners to preclude competition from independent developers. Curiously, priority reforms like advancing independent planning and reducing anti-competitive conduct are absent in the NOPR.
Join us for a conversation on what transmission reforms are needed and how FERC’s NOPR stacks up. The final rule that follows the NOPR may prove to be the most impactful energy regulatory decision of the Biden administration.
Recommended Reading Materials:
- Jennifer Chen and Devin Hartman, “Transmission Reform Strategy from a Customer Perspective: Optimizing Net Benefits and Procedural Vehicles,” R Street Policy Study 257, May 2022. https://www.rstreet.org/2022/05/11/transmission-reform-strategy-from-a-customer-perspective-optimizing-net-benefits-and-procedural-vehicles.
- Adam Winer, “AEE’s statement on FERC transmission planning announcement,” Advanced Energy Economy, April 21, 2022. https://www.aee.net/articles/ferc-nopr-transmission-planning-2022.
- “Consumers Say FERC’s Proposed Rule Abandons Electricity Transmission Competition and Supports Monopoly Incumbent Electric Utilities,” Electricity Transmission Competition Coalition, April 27, 2022. https://electricitytransmissioncompetitioncoalition.org/consumers-say-fercs-proposed-rule-abandons-electricity-transmission-competition-and-supports-monopoly-incumbent-electric-utilities.
- “Reply Comments of Kentucky Public Service Commission Chairman and Commissioner Kent A. Chandler,” Docket No. RM21-17-000, last accessed July 21, 2022. https://elibrary.ferc.gov/eLibrary/filelist?accession_number=20211201-5009&optimized=false
- [Moderator] Devin Hartman, Director of Energy and Environmental Policy, R Street Institute
- Kent Chandler, Chairman of the Kentucky Public Service Commission
- Paul Cicio, President & CEO, Industrial Energy Consumers of America and organizer of the Electricity Transmission Competition Coalition
- Jennifer Chen, Senior Manager of Clean Energy, World Resources Institute
- Jeff Dennis, Managing Director and General Counsel, Advanced Energy Economy