Each planning region has its own set of unique challenges; however, one constant across North America is that the landscape is changing. Burns & McDonnell is actively monitoring developments across North America and developing strategies for competing and succeeding in the new paradigm. We have years of proven experience in competitive business constructs and can help you succeed in the wake of Order 1000.
The Federal Energy Regulatory Commission (FERC) introduced Order 1000 in July 2011 and affirmed it in May 2012 with Order 1000-A. Order 1000 is a landmark ruling that aims to increase competition in the electric transmission industry. The three key areas of focus include cost allocation, transmission planning and the removal of the federal right of first refusal (ROFR).
Cost Allocation — Who Pays?
Part of Order 1000 mandates coordination and collaboration on allocation of costs between regions on large-scale, interregional transmission projects. Finding equitable and economical cost allocation solutions has never been more challenging — or more important.
Order 1000 requires all transmission providers to participate in a regional transmission planning process. In addition, it requires all regional planning processes to accommodate an interregional planning process when addressing large, multiregional transmission projects.
Removal of ROFR
Order 1000 removes the federal right of first refusal (ROFR) for transmission projects that are identified in a regional plan for the purposes of cost allocation. As a result, many transmission projects that have traditionally been assigned based upon geographic location and service territory may now be open to competition. Incumbent utilities will no longer maintain the federal right of first refusal to build, own and operate large-scale transmission projects that are located within their service territory. The ROFR removal has the potential to significantly change the way large transmission projects are identified and awarded.
Mountaineer XPress EIS
FERC Notice of Inquiry: Cyber Systems in Control Centers
Webinar: Competing Under FERC Order 1000
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Kent Herzog Managing Director 816-844-4483