FERC announced Thursday it will create a task force with state regulators to spur increased transmission development to deliver renewable power, reduce congestion and improve reliability (AD21-15).

The task force, which will include all five FERC commissioners and 10 state regulators appointed by the National Association of Regulatory Utility Commissioners, is expected to hold its first meeting in the fall.

FERC Chair Richard Glick said the group would seek to improve current approaches to transmission planning, cost allocation and generator interconnections.

“It is difficult to imagine an effective transmission planning approach or a cost allocation mechanism without meaningful input from state regulators,” said Glick, who also noted the states’ authority over transmission siting. “This commission wants to encourage creative approaches to transmission cost allocation and planning to facilitate additional investments in the grid.”

NARUC President Paul Kjellander, who also heads Idaho Public Utilities Commission, called the task force “a much-needed opportunity for state and federal regulators to work collaboratively on transmission issues that affect all stakeholders.

“Our shared authority over how to plan and pay for transmission infrastructure and the rapid pace of the energy transition have made such collaboration an imperative for all of us,” Kjellander said in a statement

FERC also issued a policy statement clarifying that neither the Federal Power Act nor commission regulations prevent states from signing voluntary agreements to plan and pay for transmission projects that are not being developed under Order 1000 (PL21-2). The statement essentially reiterates FERC’s approval of PJM’s “state agreement” approach under Order 1000, which New Jersey regulators are pursuing to build transmission to deliver 7,500 MW of offshore wind to the grid. (See New Jersey Seeks OSW Transmission Ideas.)

The two actions are a recognition of the frustration over Order 1000’s failure to produce any interregional transmission projects since it was issued in 2011.

The task force order said that the shared jurisdiction over transmission makes it a topic “ripe for greater federal-state coordination and cooperation.

“We believe that a formal structure to jointly explore transmission-related issues is important in order to secure the benefits that transmission can provide,” FERC said.

FERC asked NARUC to make its nominations within 30 days and that it appoint two representatives from each of NARUC’s five regions, “recognizing that transmission-related issues may be viewed differently not only within, but also among different parts of the country.” The state representatives will serve no more than three one-year terms.

The task force will hold “multiple” formal meetings a year, which will be open to the public. Although not all states will be represented on the task force at any one time, FERC said all state commissions will be invited to suggest agenda topics, and the task force may convene regional meetings with participation by all commissions in the region.

Staff from FERC, NARUC and the state commissions will support the group.

The order said the task force may consider issues including:

• • • solutions to obstacles inhibiting planning and development of transmission needed to achieve federal and state policy goals;
    • potential reforms to FERC rules on planning and cost allocation;
    • ways to speed the interconnection of new resources; and
    • ways to ensure that transmission investment is cost effective, “including approaches to enhance transparency and improve oversight of transmission investment including, potentially, through enhanced federal-state coordination.”

The policy statement addressed voluntary agreements among two or more states, states and public utility transmission providers, or multiple transmission providers. FERC said such agreements “may allow state-prioritized transmission facilities to be planned and built more quickly than would comparable facilities that are planned through the regional transmission planning process(es). Nevertheless, we are concerned that confusion regarding the relationship between voluntary agreements and commission rules and regulations may be deterring such agreements.”

“We clarify that voluntary agreements are not categorically precluded by the Federal Power Act (FPA) or the commission’s existing rules and regulations, and encourage interested parties considering the use of such agreements to consult with commission staff,” FERC said. “To the extent that states, public utility transmission providers, or other stakeholders believe that the relevant tariffs impose barriers to voluntary agreements, the commission is open to filings to remove or otherwise address those barriers.”

The statement quoted from FERC’s order approving PJM’s state agreement approach, which the commission said supplemented and did “not conflict or otherwise replace” PJM’s Order 1000 process to consider transmission needs driven by public policy requirements.

Cutting the ‘Gordian Knot’

FERC’s actions were welcomed by renewable energy advocates.

Gregory Wetstone, CEO of the American Council on Renewable Energy, said the policy statement “constructively clarifies that states wishing to cut the Gordian knot of transmission planning and cost allocation are able to do so.

“These two actions are down payments on the substantial transmission policy reforms we hope to see later this year,” he continued. “States are important partners in this work, and reforming transmission planning and cost allocation would be the most impactful thing the commission could do to accelerate the deployment of renewable power necessary to tackle our climate challenge.”

Sean Gallagher, vice president of state and regulatory affairs for the Solar Energy Industries Association, said the U.S. must add hundreds of gigawatts of solar power and energy storage capacity to reach President Biden’s 100% clean electricity goal. “We must also find a way to connect this load to the grid and deliver it to customers that want access to solar and storage,” he said.

Rob Gramlich, executive director of Americans for a Clean Energy Grid, called the actions “an important first step towards comprehensive reform.”

Earlier this month, Gramlich noted, the governors of Michigan, Illinois, Minnesota and Wisconsin sent a joint letter to MISO CEO John Bear saying the RTO’s long-range transmission planning process “is urgently needed to allow carbon-free and low-cost electricity to flow across the region” while maintaining reliability.

Chatterjee Recuses

Commissioner Neil Chatterjee, whose term expires June 30, did not participate in either the task force order or the policy statement. He also did not participate in two other orders Thursday, one of which approved a settlement between CAISO and Greenleaf Energy Unit 2 (ER20-1947-003) resolving issues over Greenleaf’s provision of reliability must run service. The second order addressed requests for rehearing of the commission’s March 18 order denying a petition by NextEra Energy (NYSE:NEE), Evergy (NYSE:EVRG), American Electric Power (NASDAQ:AEP), Exelon (NASDAQ:EXC) and Xcel Energy (NASDAQ:XEL) for a declaratory order regarding affiliation and passive interests (EL21-14-001).

Chatterjee’s office did not respond to a request for comment on why he did not participate.

Although his term expires at the end of the month, Chatterjee could serve through the end of the year if no one is confirmed to replace him before then.

But Chatterjee’s comments at the open meeting suggest that he may be actively looking for a new job in the industry, which could force recusals. He acknowledged his time at the commission is “winding down” but said he had not determined when his last day will be. “I commit to being as transparent as possible when I do make that decision,” he said. “In the meantime, I plan to stay constructive and remain active in the commission’s important work.”

It was Chatterjee who programmed the hold music that played on FERC’s audio connection before the meeting began. He said technology limitations reduced the playlist he had selected to a three-song loop, but said the full playlist included Johnny Paycheck’s “Take This Job and Shove It.”

“You all can read what you want into that,” he joked.