July 11, 2024

Nick Wallace

FERC Released Order 1920: What’s Next?

Smart grid development is critical to meeting our clean energy and climate goals. FERC Order 1920 establishes a long-term pathway to building the grid infrastructure we need, but the energy transition is happening now.

FERC released Order 1920, its long-awaited transmission planning rule on May 13, establishing a pathway to overhaul the transmission grid. Long-term planning under Order 1920 will ensure that grid infrastructure keeps pace with the energy transition from fossil fuels to wind, solar, and other low-cost renewable resources. Among other important provisions, the rule requires grid planners to consider state policies such as renewable portfolio standards, and to include alternative transmission technologies in their transmission planning toolkit.

So, what happens now?

Transmission planning is a slow process and Order 1920 will take years to implement. Moreover, regional transmission organizations like PJM and MISO may be reluctant to rewrite their existing planning processes without additional directives from FERC. ELPC and other advocates will continue pressing for full implementation of the rule.

In the meantime, regional and state-level initiatives can provide short-term solutions to accelerate grid decarbonization while maintaining reliability. State regulators and legislators care about what FERC has to say, so Order 1920 presents a good opportunity to make sure policymakers understand the benefits of and obstacles to smart transmission development.

Rebuilding the Grid from the Ground Up

While Order 1920 applies to federally-regulated transmission planning, aspects of the framework outlined the Order have implications for state level regulatory proceedings. The most effective approach is to work directly with state public utility commissions (PUCs) on near-term solutions to expedite grid transformation.

By litigating in state-level grid planning and collaborating with state PUCs, ELPC can identify and address state-specific issues, innovating and replicating successful strategies. Following the passage of Order 1920, our state-level work primarily aims to accelerate the process of transmission build-out by providing near-term solutions.

For example, in Illinois, ELPC works closely with the Illinois Commerce Commission (ICC) and various stakeholders to accelerate smart, necessary infrastructural investments.

• We advocate in grid planning projects such as ComEd and Ameren’s multi-year integrated grid plans to ensure the utilities’ approaches to modernizing the electric grid and integrating more distributed energy resources (DERs) are coordinated with expanding transmission.
• These local efforts then dovetail with our work to accelerate transmission build-out, such as our engagement in Ameren’s current proposals to construct transmission lines in Jefferson and Wayne Counties in Illinois.

Given Illinois’ posture as a Midwest leader in clean energy, our work can serve as a model for potential strategies in neighboring states like Wisconsin, Michigan, and Minnesota.

Accelerating Transmission Planning with GETs

Grid-enhancing technologies (GETs) are the perfect example of a near-term solution that can be deployed on a state level. As noted above, Order 1920 requires consideration of alternative technologies, including GETs, in transmission planning.

GETs are much faster to deploy than most transmission infrastructure, which means they can be a real short-term solution. State Commissions are already paying attention. For example, the ICC recently included consideration of GETs in its Renewable Energy Access Plan (REAP), noting GETs’ particular value as cost-effective, near-term solution for modernizing the grid.

GETs enhance existing infrastructure to squeeze more juice out of the grid, increasing its capacity and improving its reliability. They’re also very cost-effective, which saves money for ratepayers. Utilities that have experience deploying GETs have found them to be even more effective than advertised.

At this point, there is no reason to leave them sitting on the shelf. By integrating GETs into transmission planning, we can enhance the Midwest’s state’s grid planning proceedings and transmission buildout, creating a more resilient and adaptable energy infrastructure.

Balancing Short-Term Solutions with Long-Term Goals

The continued build-out of transmission over the long term is necessary to achieve our overarching goals. But we want to particularly support those which encourage long-term plans of connecting renewable-rich areas, like those in the Midwest, to major urban centers such as Chicago. This strategic alignment makes sure that short-term utility-driven projects do not operate in isolation, but instead work in concert to ensure a holistic approach to grid modernization. Ongoing federal advocacy plays a vital role in this process, ensuring that RTOs comply with FERC’s directives and correctly implement the necessary improvements.

What’s Next?

Smart grid development is critical to meeting our clean energy and climate goals. FERC Order 1920 establishes a long-term pathway to building the grid infrastructure we need, but the energy transition is happening now. By leveraging state-level initiatives, pushing for deployment of innovative technologies, and engaging in comprehensive advocacy, we aim to accelerate the modernization of our electric transmission system.