FERC Changes Order 1920 to Strengthen State Regulators in Long-Term Transmission Planning

FERC has confirmed its long-term transmission planning rule, Order No. 1920, with modifications to strengthen the ability of state regulators to participate in the long-term regional transmission planning process.

The order responds to requests for rehearing and clarification of Order No. 1920, approved in May 2024. It will provide state regulators with more opportunities to be involved in the new process of planning and paying for transmission facilities in regions throughout the country to power the increase in demand for electricity in the future.

Order No. 1920-A requires transmission providers to conduct long-term planning for regional transmission facilities over a 20-year time period to predict future needs and determine payment for the transmission facilities. It also provides for cost-effective expansion of transmission being replaced, when required, known as right-sizing transmission facilities.

The changes in the rehearing order enhances the role of state regulators in the long-term regional transmission planning process, especially in determining scenario development and cost allocation. The order also clarifies FERC to extend the engagement period for cost allocation discussions for up to six additional months at the request of state regulators.