Regulatory Affairs news highlights: December 2024

 

Recent regulatory headlines we’re tracking include:

FERC issues Order 1920-A on electric regional transmission planning and cost allocation

The Federal Energy Regulatory Commission (FERC) approved Order 1920-A, which upholds most of the provisions of landmark Order 1920 on electric regional transmission planning and cost allocation, on Nov. 21. However, Order 1920-A increases the role of the states in the process, as it now requires transmission providers to file any state agreed-upon cost allocation method or process in their region for FERC to consider along with their proposals, and consult with the states in their region if they want to change a cost-allocation agreement after it has gone into effect. The original Order 1920 allowed states six months to agree on a cost-allocation method for transmission projects, but transmission planners could choose not to file the state cost allocation method or process. A summary of the major changes incorporated in Order 1920-A is included in an appendix to the order (p. 814 of the document). 

 

FERC holds technical conference on co-location of large loads at generating facilities 

FERC held its technical conference on co-location of large loads at generating facilities on Oct. 25. The FERC commissioners opened the conference, and Chairman Willie Phillips noted that FERC “can and should” play a leadership role in this area. Commissioner Judy Chang stated that FERC needs to clarify existing rules or create new rules that address these new types of loads. There was concern among the commissioners about the impact of data center load and co-location on reliability and resource adequacy, but also an acknowledgment that data centers are important for the country and for national security. 

Panel 1 included more general remarks on the issues surrounding co-located loads. Both PJM and AEP discussed how they are receiving large and growing load forecasts from data centers, and that many data centers are interested in co-location. Howard Gugel, the North American Electric Reliability Corporation (NERC) vice president of regulatory oversight, stressed the importance of focusing on the characteristics of data center load, and creating high quality load models. A representative from the Data Center Coalition discussed how data centers support “just and fair” cost allocation and are willing to pay their fair share for their demand on the system. 

Panel 2 included the PJM Independent Market Monitor and representatives from Google, Dominion, Talen, Exelon, and Constellation. There was discussion of essential reliability services and how entities that benefit from these services should help pay for them. Panel 3 was a roundtable with state representatives, all from areas in the RF footprint (Maryland, District of Columbia, Illinois, Pennsylvania, and Indiana). Multiple state representatives on this panel expressed concerns about a lack of transparency regarding co-location arrangements, and that it is also helpful for them to know what co-location arrangements are occurring in other states that could affect them.  A recording of the technical conference is available to view here. 

 

U.S. sets new nuclear targets at COP29 U.N. climate summit 

The White House and the Department of Energy shared that the U.S. set new targets at the recent COP29 United Nations Climate Change Conference to deploy 35 GW of new nuclear capacity by 2035 and 200 GW of new nuclear energy capacity by 2050. The U.S. also set a goal to reach a sustained pace of 15 GW of new nuclear energy per year by 2040. The White House released a framework with these targets and a plan for action, including:  

1. Building new large, gigawatt-scale reactors  
2. Building small modular reactors (SMRs) 
3. Building microreactors (compact nuclear reactors that typically produce 1-20 MW of thermal energy) 
4. Extending and expanding existing reactors through license renewals, power uprates, and restarting recently retired reactors 
5. Improving and speeding up NRC licensing and permitting processes 
6. Developing the nuclear power workforce 
7. Developing component supply chains for the various components needed in a nuclear reactor 
8. Developing fuel cycle supply chains 
9. Managing spent nuclear fuel 

Additional information on the nine components of the plan is set forth in the framework document. It is not yet clear what effect the upcoming change in U.S. presidential administration will have on these targets.