The Federal Energy Regulatory Commission (FERC) Order 1920 has been a topic of debate in the energy industry. The order grants states more authority over transmission planning, which has some stakeholders concerned about potential cost increases. Proponents of the order argue that it will lead to more efficient and cost-effective transmission planning.

FERC Order 1920 was issued in December 2020. The order requires regional transmission planning (RTP) entities to develop regional transmission plans that consider state and local public policy goals. RTPs are organizations that bring together stakeholders from different states to plan for the transmission of electricity.

Order 1920 also requires RTPs to consider state and local public policy goals when allocating transmission costs. This could include things like renewable energy mandates and energy efficiency goals.

Some stakeholders are concerned that Order 1920 will lead to higher transmission costs. They argue that states may prioritize their own policy goals over cost-effectiveness when allocating transmission costs. This could lead to situations where some states are subsidizing the transmission costs of other states.

Other stakeholders argue that Order 1920 will lead to more efficient and cost-effective transmission planning. They argue that states have a better understanding of their own resource needs and policy goals than FERC does. They also argue that giving states more authority will encourage them to invest in transmission infrastructure, which is needed to support the growth of renewable energy.

The impacts of Order 1920 are still uncertain. It is too early to say whether the order will lead to higher or lower transmission costs. However, the order is likely to have a significant impact on how transmission planning is done in the United States.

In addition to the potential impacts on costs, Order 1920 could also lead to changes in the way that transmission projects are sited and permitted. Under the current system, FERC has the authority to approve or deny transmission projects. However, Order 1920 gives states more say in the siting and permitting process.

This could lead to a more streamlined permitting process, as states would not have to wait for FERC approval before beginning construction on a transmission project. However, it could also lead to more delays, as states may disagree with each other about the need for a particular transmission project.

The overall impacts of Order 1920 are still uncertain. However, the order is likely to have a significant impact on how transmission planning is done in the United States.