FERC Issues Proposed Rulemaking on Transmission Line Ratings

FERC Issues Proposed Rulemaking on Transmission Line Ratings | Troutman Pepper


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On November 19, 2020, FERC issued a Notice of Proposed Rulemaking (“NOPR”) proposing to reform its regulations and
pro forma OATT to improve the accuracy and transparency of transmission line ratings. According to FERC, more accurate line ratings will reduce congestion costs and result in substantial cost savings for consumers, whereas inaccurate line ratings may result in unjust and unreasonable rates.
Consistent with FERC’s open-access policies, public utilities must calculate and post available transfer capability (“ATC”) as a way to give potential third-party transmission customers information on transmission service availability, but FERC has yet to prescribe a formal methodology to calculate ATC. Following the impending retirement of certain NERC guidance relating to ATC calculations in 2020, FERC issued a separate NOPR on July 16, 2020 proposing to amend its regulations to establish general criteria for calculating ATC, which raised certain issues regarding transmission line ratings. After the issuance of a FERC Staff Paper (“Managing Transmission Line Ratings”) and a technical conference, FERC preliminarily determined that the establishment of transmission line rating rules would directly affect the cost of wholesale energy, capacity and ancillary services, as well as the cost of delivering wholesale energy to transmission customers. Thus, the Commission concluded, inaccurate transmission line ratings may result in Commission-jurisdictional rates that are unjust and unreasonable.

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