In a recent government meeting, significant concerns were raised regarding the implications of new regulations on cost allocation for public policy projects within multistate regional transmission organizations (RTOs). A key speaker, drawing from extensive experience as a Virginia regulator in the PJM, highlighted that the proposed changes represent a substantial departure from previous guidelines established under Order 1000.

The speaker emphasized that the new rule mandates the inclusion of public policy projects alongside reliability projects in a single cost allocation framework, which could lead to the socialization of costs across multiple states. This shift is particularly problematic for states that may not agree with the costs associated with these public policy initiatives, as they would have no authority to approve or reject the allocations.

The discussion pointed out that the new regulations require states to incorporate their renewable portfolio standards into the planning process, effectively forcing them to align with mandated benefits without the ability to negotiate or dissent. This lack of transparency and state control could result in unfair financial burdens being placed on consumers in various states, particularly in multistate regions like PJM.

The speaker argued that if public policy projects are to be treated similarly to reliability projects, states should retain the authority to assess whether these costs are beneficial for their consumers. The meeting concluded with a call for further discussion on the implications of these regulatory changes, underscoring the need for state regulators to act as advocates for their constituents in the evolving energy landscape.