Is FERC Rule 1000 The Key To Getting Green Power To Market?

May 1, 2012

The Federal Energy Regulatory Commission's (FERC) Rule 1000 is a good first step toward a coherent, long-distance transmission policy. This Rule, enacted in July 2011, usurps utilities' right of first refusal to disallow transmission lines from being built on their territory, and orders utilities to work with others outside of their control areas to develop plans and transmission systems that should reduce costs to consumers. FERC concludes that incumbent transmission providers' ability to use their "first refusal" in their own economic self-interest may discourage new entrants from proposing new transmission projects in the regional transmission planning process. The Rule also proposes to reform cost allocation to aid in the development of renewable energy.

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