Law360 Quotes Stephen Hug on FERC Power Project Policies Revision

For its article “4 Takeaways From FERC's Grid Connection Policy Rewrite,” Law360 quoted Akin energy regulatory partner Stephen Hug. The article discusses the Federal Energy Regulatory Commission’s (FERC) revision of its generator interconnection procedures and agreements, with the rule finalized last week.

On the topic of the FERC’s requirement of transmission providers that they conduct cluster studies of multiple projects in their interconnection queues on a first-ready/first-served basis rather than the current first-come/first-served basis, Stephen said that the impact of the FERC mandating first-ready/first-served cluster studies may be overstated, as regional grid operators have already use some form of first-ready cluster studies, but still have major interconnection backlogs. He said, “Part of the final rule is making commission policy what has already been adopted in some regions, at least to some extent.”

On the topic of the final rule’s requirement that advanced grid technologies be considered in interconnection studies, Stephen said, “What we see in the interconnection final rule is FERC encouraging transmission providers to evaluate alternatives and look for opportunities to accommodate resources using technology in a manner that's arguably more efficient than building new transmission.”

On the question of compliance with the final rule, one of the longest in the FERC’s history, even given some leeway offered by the Commission in compliance with final rules, Stephen said, “There is a question as to how far FERC is going to allow some of the markets to deviate from the proposals that are set forth in the final rule.”

Finally, on the topic of the rule intentionally not addressing larger issues of long-term and regional transmission planning, project cost allocation, and challenges with project siting, he said, “The interconnection rule is going to make it even more important to get transmission planning right.”