FERC’s Rule 1920, approved May 13, 2024, will require major changes to the way expansions and improvements to our nation’s electricity grid will be planned and paid-for. Under the new rule, grid planners will use a 20 year time horizon for planning, and will need to consider: state regulations, planned generation retirements, renewable energy additions and the accompanying demands, as well as emerging technologies that can reduce the need for additional pole/wire infrastructure. Cost allocation must also be considered, among interested parties, including states and users who may or may not gain as much benefit from improvements as others. The two Commissioner majority that approved the rule assert that this rule is a key step toward equitable and intelligent grade expansion and modernization.
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