Looking Beyond Transmission

摘要

The Federal Energy Regulatory Commissions (FERC) Order 1000 makes great strides towards ensur-ing just and reasonable transmission rates and a level competitive playing field. It does this, in part, by requiring the consideration of non-transmission alternatives ("NTAs" or "non-transmission solu-tions") during regional transmission planning. Unfortunately, however, the order fails to address certain significant barriers to the implementation of NTAs, making it unlikely that regional plans will ever approve their implementation—or that genuinely competitive solutions will prevail anytime soon. Order 1000 improves transmission planning by requiring transmission providers to participate in regional planning. This process must consider public policy requirements, evaluate proposed transmission and non-transmission alternatives, and provide for regional cost allocation for transmission solutions that distribute costs commensurate with benefits.Despite these positive steps, unnecessary barriers still remain to achieving the most efficient and least-cost transmission system. In particular, Order 1000 leaves intact several competitive barriers to the implementation of NTAs, including issues surrounding cost recovery, proposing and implementing NTAs, and the evaluation of their benefits. These barriers must be addressed because NTAs have the potential to provide the most cost-effective solution to many transmission needs. In short, a least-cost transmission system can't be achieved without them.