In a recent government meeting, officials underscored the critical importance of transmission planning for the nation's electrical grid, particularly through the newly established regional planning rule, Order 1920. This marks a significant shift as it is the first time the Federal Energy Regulatory Commission (FERC) has directly addressed long-term transmission planning.

Commissioners emphasized that the rule is designed to enhance reliability and security in the face of increasing demand driven by factors such as data centers, artificial intelligence, and a resurgence in industrial manufacturing. They warned that without proactive measures, the country could face severe reliability issues, especially during extreme weather events.

A key point of contention discussed was the allocation of costs among states. One commissioner clarified that the cost causation principle, which has been upheld by courts, ensures that costs are allocated based on the benefits received, countering claims that some states would unfairly subsidize others.

The meeting also highlighted the necessity of interregional transmission as a solution to reliability challenges. Commissioners noted that current regulations limit the development of interregional transmission, and there is a need for more collaborative planning among regions to improve the overall grid infrastructure.

As the nation grapples with a growing grid reliability crisis, officials are advocating for immediate action to address these challenges, emphasizing that inaction will only lead to escalating costs and potential failures in the power supply.