FERC Order 1000 Implementation

The Federal Energy Regulatory Commission (FERC) issued Order 1000 on July 21, 2011. The order requires that PJM consider transmission alternatives in its regional transmission planning processes, produce a regional transmission plan and implement a fair cost allocation methodology. The complete text of the order and related documents are available on the commission’s website.

Considering Transmission Alternatives
PJM’s compliance filing on Oct. 25, 2012, built on the existing Regional Transmission Expansion Plan (RTEP) process, already compliant with Order 1000 in most respects. The filing contained several key enhancements, including those needed to consider alternative upgrade solution proposals. Links to PJM’s implementation resources are provided below. PJM’s compliance filing (currently pending before the FERC) is also availablePDF.

Additionally, on July 22, 2013, PJM submitted certain revisions to the Definitions and Schedule 6 of the PJM Operating Agreement and the Definitions of the PJM Open Access Transmission Tariff in compliance with the Commission’s March 22, 2013 Order. The proposed revisions address the Commission directives relating to PJM’s revised regional transmission planning process under Order No. 1000. PJM requested an effective date of January 1, 2014. PJM’s compliance filing (currently pending before the FERC) is also availablePDF.

RTEP Upgrade Cost Allocation
On Oct. 11, 2012, PJM transmission owners, acting through the Transmission Owners Agreement, submitted revisions to Schedule 12 of the PJM Open Access Transmission Tariff that reform existing RTEP upgrade cost allocation provisions. The proposal implements a hybrid cost allocation model in which half the cost of 500 kV and higher transmission lines would be collected from all system users while the other half would be assigned to specific project beneficiaries. The transmission owners’ filing (currently pending before the FERC) is availablePDF.

Please submit a process inquiry if you have any questions about the process.