- Concerned with economic stability and grid reliability, PSC Commissioner Brown takes issue with new FERC rule.
On May 13, 2024, the Federal Energy Regulatory Commission (FERC) issued a final rule aimed at improving regional electric transmission planning and cost allocation. Titled Order No. 1920, directs transmission providers to adopt reforms to improve long-term assessments of transmission needs and adequately prepare for the future of the electric grid.
In order to require transmission providers to adopt these reforms, Order No. 1920 modifies FERC regulations under Section 206 of the Federal Power Act to ensure that rates, terms, and conditions for transmission service remain just and reasonable.
Mississippi’s Northern District Public Service Commissioner Chris Brown (R) is one of the voices speaking against the new Biden Administration regulation. Brown believes the rule undermines the economic stability of the state and nation’s energy infrastructure and places unnecessary burdens on consumers.
“Order No. 1920 represents a troubling trend of legislation by regulation, circumventing the legislative process to impose sweeping policy changes that Congress has not endorsed,” said Commissioner Brown. “The complexities and uncertainties surrounding this rule raise serious concerns about its cost-effectiveness and its potential impact on our grid’s reliability.”
FERC adopted the rule by a 2-1 vote of the Commission. FERC Commissioner Mark Christie, the sole Republican on the Commission, has said the rule is a “pretext to enact, through administrative action, a sweeping legislative and policy agenda that Congress never passed.”
Christie has stated that the rule seeks to enforce a convoluted set of mandates that will burden every transmission provider in the nation, diverting trillions of dollars from consumers to serve the interests of political and corporate entities. He further cautioned that the rule is likely to force consumers in some states to subsidize transmission facilities that do not directly benefit them, serving the agendas of other states or large energy buyers.
The two Democrats on FERC, Chair Willie Phillips and Commissioner Allison Clements, touted the new rule as common sense and historic.
Michael Kunselman and Sean A. Atkins, attorneys in the energy, natural resources, and environmental practice team at Davis Wright Tremaine, said Order No. 1920 represents the most significant change to the way the nation’s electric grid will be expanded to meet growing needs for electricity at least since Order No. 1000 was promulgated over a decade ago.
“The rule is intended to maintain reliability in the face of aging infrastructure and extreme weather challenges while promoting a modernized grid that can connect renewable resources,” the two wrote. “However, based on the strongly polarized views among the three sitting commissioners as to the legal and policy-related merits of this new rule, and taking into account the current political backdrop, Order No. 1920’s fate seems far from certain.”
Zach Bright with E&E News by Politico said the new rule “shakes up power industry with landmark grid rule.”
“Monday’s FERC decision seeks to change federal and state approaches to regional planning that has made it harder to shift the nation to low-carbon technology,” Bright wrote. “In areas where grid planning isn’t well coordinated among states, projections for rapidly expanding demand from data centers and the electrification of homes and vehicles is raising concern about grid reliability.”
Bright noted that Biden Administration officials have said “the existing regional transmission capacity needs to double to achieve a goal of cutting carbon pollution from the power sector by 2035.”
Mississippi PSC Commissioner Brown said in a statement on Thursday that he stands firmly with FERC Commissioner Christie in opposing this “shell game” of regulations, which prioritizes “green energy” projects over the immediate needs and financial interests of Mississippi consumers.
“Our ratepayers deserve transparency and accountability in energy policy, and we will not stand by while bureaucratic overreach threatens their economic well-being,” Brown stated, adding that the excessive regulation “threatens the fabric of our energy system.”
Brown, chairman of the Mississippi Public Service Commission, said the PSC will continue to advocate for policies that prioritize the needs of our consumers and ensure that energy remains affordable and reliable.
Frank Corder
