Abstract

Transmission III? I use that term to describe what publication Law360 signaled as one of the key energy policy issues to watch in 2022: how to overhaul the Federal Energy Regulatory Commission's (FERC's) transmission rules to accommodate increasing amounts of renewable energy coming from interior parts of the country with significant levels of wind and solar energy—but few large population centers. The FERC is facing a new interstate transmission problem, as existing US interstate transmission networks were built to serve other purposes. Transmission I, as I call it, arose to provide interstate electric grid system reliability and resilience for state‐regulated, vertically integrated electric utilities after the famous East Coast blackout of November 1965. Transmission II followed in the wake of the regional wholesale power market development, which arose after the mid‐1990s, to avoid the higher electricity costs arising when transmission congestion kept low‐cost generating plants from contributing to intrastate regional power grids.

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