FERC’s Order No. 1920 Is a Costly Shell Game
Heartland Author
June 4, 2024
By Travis Fisher
Disclaimer: I served as a staff economist at the Federal Energy Regulatory Commission from 2006 to 2013 and as a commissioner adviser from 2018 to 2020.
On Monday, May 13, the Federal Energy Regulatory Commission (FERC) issued a “watershed” new ruling addressing electricity transmission and the need to expand America’s power grid. The commission claims the new ruling, titled Order No. 1920 (a nod to FERC’s statutory roots), will cost‐effectively ensure a more reliable grid. However, if the rule is effective in getting a new wave of transmission projects built, it will be a gift to developers of solar and wind projects at the expense of consumers and taxpayers. In any case, the rule is a step away from true competition and a step toward a convoluted, partisan mess.
What Order No. 1920 Does
This new rule establishes a minimum 20‐year planning horizon for regional transmission expansion (largely to accommodate new wind and solar facilities). Despite some sugarcoating from FERC, this plan: (1) mandates that regional transmission plans socialize the cost of the most aggressive climate and renewable energy goals of some states and corporate customers at the expense of consumers and taxpayers everywhere, (2) derives from no clear authority granted by Congress, and (3) was rushed to avoid further scrutiny under the Congressional Review Act.
https://heartlanddailynews.com/2024/06/fercs-order-no-1920-is-a-costly-shell-game/
