Policy and Legal

The federal government has agreed to fast-track some power project requests by U.S. grid operators, potentially staving off electricity shortfalls from an overloaded grid (POLITICO Pro, subscription).

What’s going on: Last week, the Federal Energy Regulatory Commission issued unanimous orders “conditionally authorizing requests from the Midcontinent Independent System Operator (MISO) and Southwest Power Pool (SPP).”

• The move follows a similar approval for an expedited interconnection process for PJM Interconnection, the largest power grid in the U.S.
• It also comes just months after FERC rejected a similar request from MISO.

Why it’s important: The MISO and SPP plans seek to get new projects online quickly as some traditional power plants are closed “and replacements are stuck awaiting studies for approval to plug into the bulk power grid.”

• Utilities have signaled that they need more generation to account for growing power appetite, much of it stemming from the rapid construction of capacity-hungry data centers.

What’s new this time: Although FERC said in May that MISO’s expedited resource adequacy study process was too broad and therefore risked worsening the “existing interconnection queue delays,” the revised proposal, submitted in June, caps at 68 the number of ERAS endeavors in coming years.

• The revised proposal also adds new eligibility requirements.
• And “projects seeking expedited grid studies must have approval of the appropriate local regulator, control the site for the project and have a contracted buyer as well as pay a $100,000 application fee and meet other conditions.”