Complying with FERC Order 881: How Utilities Can Tackle the Data & Rating Methodology Challenge
Taking effect in 2025, the United States' Federal Energy Regulatory Commission (FERC)’s Order 881 is designed to squeeze out every bit of power from the existing transmission grid, with an added goal of lowering energy costs for consumers. It also adds complexity for utilities tasked with complying with the order by next July.
Most utilities have implemented new digital technologies to navigate FERC 881 – such as dynamic line rating solutions, operator training simulation tools, network model management and more. Still, the looming deadline has left many utilities, especially smaller municipalities and co-ops, concerned about how they will optimize these digital investments and maintain compliance as they face a deluge of data from new field sensors and open questions about rating methodology.
FERC 881 Requirements
FERC 881 mandates that Transmission utilities must more accurately calculate their line ratings and provide transparency into those numbers with neighboring utilities. The aim is to increase capacity without adding more transmission lines.
To comply, utilities must understand how much their transmission lines can expand without overheating. Traditionally used seasonal line ratings calculations will no longer be an accurate enough measure to ensure that consumers are paying for the power capacity of lines available in real time. With more nuanced and granular information, grid operators can increase their loads to reflect what is happening right now.
Mastering the Data Challenge
As more grid data is collected and stored to meet FERC 881 compliance, utilities find themselves facing a data management and methodology challenge. This is proving to be especially challenging for smaller municipalities and co-ops with fewer in-house data management resources.
Advanced Energy Management Systems can act like a centralized hub of information enabling interfaces that accommodate weather data to accurately forecast renewable energy variability. In addition, utilities can improve the quality of their data and better position themselves to optimize their Energy Management System with a defined rating methodology by asking themselves the following questions:
- What data do we need? Considering that transmissions lines connect to circuit breakers, conductors, disconnects, switches, sensors, and more – all of which are generating data – this is a big question.
- Are breaker ratings or conductor ratings more useful?
- How do we accurately calculate congestion points?
- Is there enough storage for increasing data volumes?
- What tools will help us study our data and run power flow analyses?
- Are our systems able to make ambient adjustments to line loads based on temperatures and wind speeds – and as frequently as hourly?
- How do we set up an external Internet interface with weather stations or end-point sensors?
- Can we fully protect our grid assets, including ensuring that transmission lines will not overheat if load capacity is not correctly assessed based on weather conditions and demand?
With a better grasp on data management, forward-thinking utilities are using the final countdown to July 2025 to ensure their operational systems, procedures and teams are optimized for compliance. Planning and operation teams must be in lockstep on ratings methodology to maintain the quality and usefulness of the data across a utility.
Prioritizing Operator Training
Many operators have worked on the same grid for years and rely on gut instincts for making decisions around maintenance, transmission line capacities and more. By training operators on monitoring tools and data-gathering technologies used for FERC 881, workers will become more capable and efficient in their daily roles.
This even goes for simple modules added to Energy Management Systems they’ve worked on successfully for years – proper training helps instill confidence in real-time ratings while maintaining overall grid reliability. Even simple classroom training and educational tools like white papers are helpful in ensuring everyone is on the same page for FERC 881.
Getting to FERC 881
For transmission utilities feeling behind the curve for FERC 881, a good approach is to set a timetable for compliance and build in realistic – if not aggressive – stepwise goals ending by or before next July. If not already underway, key steps should include implementing an Energy Management System from a provider with domain expertise around FERC and NERC regulations, getting a handle on data management and ratings methodology, and educating internal teams.
There’s power in preparation – and in the new technologies and data-sharing capabilities that utilities will be able to leverage for numerous benefits beyond FERC 881 compliance.
