FERC Allows States and Transmission Providers to Form Voluntary Agreements

On June 17, 2021, the Federal Energy Regulatory Commission (FERC) issued a policy statement seeking to address concerns regarding the creation of voluntary agreements between States and transmission providers. The policy statement clarified that States and transmission providers may enter into voluntary agreements to plan and pay for transmission facilities.

FERC’s News Release states in part: “Voluntary agreements could provide states with a way to prioritize, plan and pay for transmission facilities that, for whatever reason, are not being developed under the regional transmission planning processes required by FERC order No. 1000. Today’s policy statement seeks to address concerns that the Federal Power Act (FPA) and FERC policies interfere with the creation of these voluntary agreements.”

The policy statement also noted that FERC is open to filings seeking to remove or address any potential barriers to the agreements.

FERC’s News Release can be found here: https://elibrary.ferc.gov/eLibrary/filelist?accession_num=20210617-3162