In a 2 to 1 vote on Monday, the U.S. Federal Energy Regulatory Commission voted to set new rules for transmitting electricity from state to state and cover the costs of new projects. The rules are anticipated to expand transmission, bring more clean power on line and be part of the Biden administration’s efforts of decarbonizing the economy by 2050.
The new rule has been in development for almost two years. Its goal is to ensure that the grid can deliver clean, reliable electricity to meet the increasing demand in the U.S.
“This rule cannot come fast enough,” said FERC Chairman Willie Phillips. “There is an urgent need to act to ensure the reliability and the affordability of our grid.”
The final rule mandates that transmission owners conduct 20-year plans that review regional electric transmission needs and revisit them every five years. It also requires transmission project participants to provide plans for how to divide costs between states and companies.
