How could new FERC standards for interregional planning affect PJM Interconnection?
New FERC standards could require PJM Interconnection to change its operational planning. The Bipartisan American Affordability and Jobs Act proposes requiring the Federal Energy Regulatory Commission to establish standards for interregional transmission planning. This aims to address the current lack of connectivity across the contiguous U.S., where the system is divided into 12 transmission-planning regions. As a regional transmission organization, PJM Interconnection operates under FERC oversight and would need to adapt its planning and coordination processes to comply with these new federal mandates, potentially enabling more transmission projects to move forward.
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How it reaches PJM Interconnection
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A bipartisan Senate bill, the Bipartisan American Affordability and Jobs Act, aims to require the Federal Energy Regulatory Commission to establish standards for interregional transmission planning. This effort seeks to create a process for planning transmission between regions to help keep electricity more reliable and affordable.
The full event1independent outlet -
The Federal Energy Regulatory Commission formally regulates PJM Interconnection. If the new standards are adopted, they would require changes to how PJM plans and coordinates transmission across the 12 transmission-planning regions to facilitate interregional projects.
No report states this step directly. Brind drew it from the reporting on each side of it, so treat it as an informed guess.
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US regional transmission organization
Everything about PJM Interconnection
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The facts so far
As reported. Each one links to where it comes from.
- The contiguous U.S. is divided into 12 transmission-planning regions and three major power grids.hometownregister.com
- FERC has required neighboring regions to coordinate on transmission planning since 2011, but those requirements have resulted in “exactly zero interregional transmission projects.”hometownregister.com
- From 2014 to 2020, China added about 250 gigawatts of interregional transmission capacity.hometownregister.com
- Europe added about 50 gigawatts, compared with about 7 gigawatts in the United States and Canada during that period.hometownregister.com
Why it matters
The stakes for the U.S. grid are high, as the current lack of connectivity limits the ability to transfer power between regions. This limits the capacity that can be exchanged, with most regions exchanging less than 10% of capacity, which impacts reliability and affordability. The bill seeks to address this lag, which is noted as being significantly greater than that of Europe and China.
Currently, utilities often have stronger incentives to invest within their own service territories, which can slow down interregional projects. The proposed legislation attempts to overcome these hurdles by creating a clearer regulatory framework and offering a backstop pathway for individual developers to move projects forward.
What we don't know yet
- What specific standards would FERC establish for interregional transmission planning?
- How quickly is the Senate expected to consider the Bipartisan American Affordability and Jobs Act?
What would change this answer
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Who else could feel it
Other possible ripples from the same event.
- North American Electric Reliability CorporationLikelyNERC may face strong operational changes as new FERC standards mandate grid connectivity
- CongressPossibleThe bill could mandate new federal standards to improve US grid connectivity
- ISO New EnglandPossibleISO New England may face new planning requirements under proposed FERC standards
- Southwest Power PoolPossibleNew FERC standards could reshape Southwest Power Pool's transmission planning
Reporting
- hometownregister.comOct 7
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Brind's analysis is written by AI from the reporting linked above and can be wrong. This explainer is a possibility worth considering, not a forecast: steps marked as Brind's reasoning are not stated in the reporting. It is not investment advice; do your own research.