Federal Energy Regulatory Commission (FERC)
The Federal Energy Regulatory Commission is an independent agency that regulates the interstate transmission of electricity, natural gas and oil; reviews proposals to build LNG terminals and interstate natural gas pipelines; and licenses hydropower projects. FERC also oversees operations of regional wholesale electricity and natural gas markets and oversees the reliability of the bulk electric system.
NERC’s 2025 budget is set to rise 8.2% over the previous year to $123 million.
NERC's Standards Committee approved several standards actions at its monthly conference call.
FERC continues to fiddle with the return on equity MISO transmission owners can earn, this time setting the base amount at 9.98% while once again eradicating the risk premium model from the calculation.
Although it’s largely compliant with the directives of FERC’s Order 1920 on regional transmission planning, MISO intends to seek a yearlong extension of the June 2025 compliance deadline.
FERC acted on rehearing requests for Order 1977, finalizing the rules it will follow under limited backstop siting authority for transmission lines.
Grid stakeholders joined commissioners in Washington, D.C., for FERC's annual Reliability Technical Conference.
A recently filed proposal by ISO-NE to increase the collateral requirements for generators with capacity supply obligations has received strong pushback from the New England Power Generators Association.
FERC Order 1920 eventually may provide a structure for long-term, interregional transmission planning, but its anticipated yearslong implementation could mean states will have to lead in planning nearer-term transmission needs, according to a report from the American Council on Renewable Energy and The Brattle Group.
The commission received dozens of comments on its advanced notice of proposed rulemaking that would require broad use of dynamic line ratings across the U.S. transmission grid.
Different industry stakeholders have estimated it may take five to 10 years for FERC Order 1920 to have any major impacts on transmission planning.
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