NE Power Transmission Operators Directed to Provide Detailed Data on Planned Infrastructure Upgrades by FERC
New England's transmission projects have come under scrutiny, with local projects receiving little review from grid operators, FERC, and state regulators, according to the Rocky Mountain Institute (RMI). This issue was recently highlighted by the Maine Office of Public Advocate (OPA) in a challenge to "asset condition" projects, which involve upgrading aging transmission lines.
The Federal Energy Regulatory Commission (FERC) has taken steps to address these concerns. In a recent decision, FERC found that the bulk of the Maine OPA's questions were valid, including questions related to the need for projects, alternatives evaluation, and procedures to prevent premature investments. FERC has also ordered New England utilities, such as Eversource, to provide more information about transmission system upgrades to the Maine ratepayer advocate.
FERC Commissioner Judy Chang has called for transmission owners across the U.S. to be more transparent about their spending on local transmission projects, a sentiment echoed by Commissioner Lindsay See, who emphasized the need for responsibility and transparency in determining the prudency of transmission infrastructure spending.
The increased focus on transparency is due in part to the significant increase in annual spending on local transmission projects in New England. According to a report released in November by RMI, spending on these projects increased eightfold from 2016 to 2023, reaching nearly $800 million.
In addition to transparency concerns, FERC has also been addressing other grid reliability issues. The agency has advanced four grid reliability rules, including ones dealing with supply chain risks, cybersecurity, and extreme cold weather. The cold weather grid reliability standard, effective from October 1, improves the clarity of communications requirements and ensures power availability during extreme cold weather events.
The FERC's formula rate process deems spending on transmission infrastructure to be prudent unless successfully challenged by an outside party. The Maine OPA is asking for more information about these projects to help determine their prudency under New England's formula rate protocol.
Elsewhere, FERC has terminated an initial application by Southeast Oklahoma Power Corp. to build an 800-MW pumped hydro project near Talihina, Oklahoma, due to insufficient study plans. The company failed to provide reasons for declining certain studies requested by the Chickasaw Nation, Choctaw Nation of Oklahoma, and the U.S. Fish and Wildlife Service.
FERC Chairman David Rosner has also requested U.S. grid operators to collaborate with the agency in developing best practices for forecasting large load additions, such as data centers. This initiative aims to improve the accuracy of grid load forecasting and ensure grid reliability in the face of growing demand.
Finally, it's worth noting that the Southwest Power Pool's plan for providing refunds related to network upgrade costs under its "Attachment Z2" has grown to nearly $660 million as of June 2024. This underscores the importance of careful planning and transparent decision-making in transmission infrastructure projects.
In conclusion, FERC and grid operators are working to address concerns about the review and oversight of transmission projects, particularly in New England. Transparency, responsibility, and careful planning are key to ensuring the prudent use of resources and the reliability of the grid.
