FERC Order No. 1920 Final Rule on Long-Term Transmission Planning
FERC issued Order No. 1920 mandating 20-year regional transmission plans, standardized benefit metrics, and cost allocation reforms to unlock U.S. grid expansion.
Executive briefing: On May 13, 2024 the Federal Energy Regulatory Commission approved Order No. 1920, a landmark rule that requires transmission-owning public utilities to produce forward-looking regional plans on at least a 20-year horizon, quantify seven minimum benefit metrics, and agree on ex-ante cost allocation methods with states. The rule replaces just-in-time planning with long-term scenario analysis aimed at meeting electrification and reliability targets.
Key policy signals
- Scenario planning. Transmission providers must study multiple long-term scenarios every five years, stress-testing load growth, clean energy adoption, extreme weather, and generator retirements.
- Benefit standardization. Order 1920 enumerates at least seven benefits—including avoided reliability projects, reduced congestion, and fuel diversity—that utilities must calculate for candidate lines.
- State engagement. The rule formalizes a state agreement process so regulators can influence assumptions, benefits, and cost allocation proposals before plans are finalised.
Control alignment
- NERC TPL standards. Update long-range resource adequacy models to integrate Order 1920 scenarios and confirm compliance evidence spans the mandated 20-year horizon.
- Corporate resilience planning. Refresh business continuity and capital expenditure roadmaps with the new benefit metrics to justify multi-region transmission investments.
- Regulatory tracking. Map how Order 1920’s state agreement requirement affects siting approvals in jurisdictions where clients operate generation or load assets.
Action checklist
- Engage with regional transmission organisations to review draft Order 1920 compliance filings and proposed benefit methodologies.
- Reassess interconnection and delivery assumptions for large load projects, ensuring they reflect the long-term solutions FERC expects utilities to evaluate.
- Coordinate government affairs teams on comment opportunities tied to cost allocation compliance filings due within 10 months of the rule taking effect.
Sources
- FERC — FERC Issues Final Rule to Spur Transmission Buildout (May 13, 2024)
- FERC Order No. 1920 Final Rule
Zeph Tech is guiding operators through Order 1920 compliance by mapping benefit calculations to capital approvals and resilience KPIs.