FERC’s New Transmission Rules Spark Federal/State Tension Over Grid Upgrades

The Federal Energy Regulatory Commission approved two new rules Monday that are expected to make it easier to expand the construction of big power lines and bring more renewable energy to U.S. homes and businesses.

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The Federal Energy Regulatory Commission (FERC) approved two new rules Monday that are expected to make it easier to expand the construction of big power lines and bring more renewable energy to U.S. homes and businesses. One rule will require companies that produce and transmit electricity to weigh factors such as supply and demand over at least 20 years; the other addresses the permitting of critical projects in areas that lack adequate transmission capacity. The new rules speed up the planning and permitting of high-voltage transmission lines, causing tension between federal and state officials. The rules require 20-year power grid assessments and allow the establishment of national corridors for high-voltage lines.

FERC Chairman Willie Phillips emphasized increased state involvement and legal durability, but Commissioner Mark Christie dissented, arguing the rules overstep state authority and violate the Major Questions Doctrine. The rules aim to address the urgent need for grid upgrades due to the transition to clean energy and increased demand, despite concerns about higher consumer costs.

Sen. John Barrasso (R-Wyo.) ranking member of the Senate Energy and Natural Resources Committee, said the rule “will force customers — often in rural states — to pay for new transmission lines even when those lines don’t provide any meaningful benefit to them.”

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