FERC issued Order 1920 on regional transmission planning and cost allocation, which it had initially adopted on May 13, 2024, and amended on November 21, 2024.
Building upon FERC Order 1000 and prior actions, Order 1920 adopts specific requirements for transmission providers to conduct long-term planning for regional transmission facilities. Major elements of the rule include: a requirement to conduct and periodically update long-term transmission planning to anticipate future needs; a requirement to consider a broad set of benefits when planning new facilities; a requirement to identify opportunities to modify in-kind replacement of existing transmission facilities to increase their transfer capability, known as “right-sizing”; allowing customers to pay only for projects from which they benefit; expanding states’ pivotal role throughout the process of planning, selecting, and determining how to pay for transmission facilities. The order was amended on November 21, 2024 to bolster the ability of state regulators to participate in the long-term regional transmission planning process.