On March 21, 2024, the Federal Energy Regulatory Commission (“FERC”) issued an order on rehearing and clarification (“Order No. 2023-A”) largely affirming its prior Order No. 2023, which addressed electric transmission interconnection queue backlogs. Consistent with Order No. 2023, Order No. 2023-A affirms adoption of reforms to implement a first-ready, first-service cluster study process, increase the speed of interconnection queue processing, and to incorporate technological advancements into the interconnection process.
Order No. 2023-A sets aside Order No. 2023, in part, to specify the compliance requirements of an interconnection customer that is in the queue of a Transmission Provider that uses or is transitioning to a cluster study process. If within 60 days of the FERC-approved effective date of the Transmission Provider’s Order No. 2023 compliance filing the interconnection customer has not executed a Large Generator Interconnection Agreement or requested that a Large Generator Interconnection Agreement be filed unexecuted with FERC, then the interconnection customer must follow the Transmission Provider’s new readiness requirements for the relevant study phase pursuant to Order No. 2023 directives. This includes providing commercial readiness deposits and demonstrating site control. Interconnection customers may withdraw within 60 days after the FERC-approved effective date of the Transmission Provider’s Order No. 2023 compliance filing without being subject to withdrawal fees.
Order No. 2023-A also specifies when network upgrades may be considered a stand alone network upgrade, that only interconnection customers with valid interconnection requests may proceed to the customer engagement window, and incudes additional acceptable forms of security for the Commercial Readiness Deposit. Further, Order No. 2023-A provides clarifications regarding, among other things, cure periods to remedy deficient interconnection requests, the timeline of providing the interconnection facilities study agreement and the cluster study report, substation network upgrade cost allocation, the application fee and study deposits, withdrawal penalty timing and limits, study delay penalties, affected system study deadlines, cluster restudy, surplus interconnection service, and clarification of terms related to technological advancements.
Order No. 2023-A extended the deadline for Transmission Providers to submit compliance filings until 30 days after the publication of Order No. 2023-A in the Federal Register.
Order No. 2023-A is available here.
Please reach out to any of the following individuals to learn how Order No. 2023-A may impact your business: Lisa S. Gast, Bhaveeta K. Mody, Keith Gordon, Andrea Sarmentero, Sylwia Dakowicz, or Eden Faure.
