AICPA SOC Service Organizations - Certrec

APPA Seeks Rehearing on Element of FERC Regional Transmission, Cost Allocation Order


The American Public Power Association is seeking rehearing of Federal Energy Regulatory Commission Order No. 1920 on the narrow issue of its decision to exclude public power from the definition of “Relevant State Entities.” 

The Federal Energy Regulatory Commission on May 13 approved a final rule that adopts specific requirements addressing how transmission providers must conduct long-term planning for regional transmission facilities and determine how to pay for them, so needed transmission is built. 

The final rule, Order No. 1920, “marks the first time in more than a decade that FERC has addressed regional transmission policy – and the first time the Commission has ever squarely addressed the need for long-term transmission planning,” FERC said.

Order No. 1920 grants several privileges to “relevant state entities” in developing and participating in the new long-term regional transmission planning process established by the order.

Most notably, relevant state entities are entitled to participate in a six-month engagement period to negotiate a cost allocation methodology for transmission facilities selected by the new planning process. 

FERC defines relevant state entities as “any state entity responsible for electric utility regulation or siting electric transmission facilities within the state or portion of the state located in the transmission planning region, including any state entity as may be designated for that purpose by the law of such state.”

But FERC explicitly excludes self-regulating public power entities and local regulatory bodies from that definition.

As a result, tens of millions of customers served by public power will have no representation during the six-month engagement period.

APPA urged FERC to broaden the definition of Relevant State Entities to include any state or municipal entity responsible for electric utility regulation or siting electric transmission facilities.