2024 was an active year for TAPS, including the following:

Legislation

TAPS actively engaged in shaping electric transmission policy throughout 2024, focusing on key priorities that align with its longstanding advocacy positions. As the electric sector grappled with a changing resource mix, increasing demand growth, and natural disasters, TAPS recognized the critical role of transmission and worked diligently to influence policy development in both the House and Senate.

In 2024, TAPS continued its engagement with the Senate Energy and Natural Resources Committee, particularly on the Energy Permitting Reform Act of 2024, introduced by Senators Joe Manchin and John Barrasso. This bipartisan legislation, which aimed to streamline permitting processes for energy projects, was a focal point for TAPS’s advocacy efforts. The organization provided input to ensure that the bill addressed the needs of load-serving entities and promoted a balanced approach to transmission development.

TAPS expressed concerns about certain aspects of proposed transmission policies, particularly those related to FERC’s expanded siting authorities and interregional planning obligations. TAPS advocated for clarifications and alternatives that could enhance the transmission development process by reducing costs and improving siting decisions. This approach reflected TAPS’s commitment to ensuring that transmission expansion serves the interests of all stakeholders, including load-serving entities and consumers.

A key priority for TAPS in 2024 was advocating for greater transparency and inclusivity in transmission planning processes. The organization emphasized the importance of giving load-serving entities a meaningful role in planning discussions, arguing that this involvement is crucial for addressing regional needs and preventing unnecessary costs.

TAPS continued to champion the concept of joint ownership in electric grid infrastructure. This model, which allows load-serving entities to invest in their load-ratio share of the transmission grid, was promoted as a way to ensure robust stakeholder input, that local needs are met while costs are kept in check. TAPS argued that involving all load serving entities in the planning process helps prevent overbuilding and ensures a reliable, cost-effective grid.

The association also advocated for tying federal incentives for new transmission projects to requirements that load-serving entities be offered a load ratio joint ownership share in these projects. This position aligns with TAPS’s goal of ensuring that transmission development benefits a wide range of stakeholders and promotes a more equitable and efficient electric system.

In its interactions with policymakers, TAPS emphasized the need for a balanced approach to transmission development that is based on a full assessment of options and alternatives, utilizing planning processes based on local and regional participation, considering costs and needs. The association’s efforts in 2024 reflected its commitment to ensuring that the expansion of the nation’s electric transmission system serves the interests and needs of consumers.

NERC/NAESB

As the FERC-certified Electric Reliability Organization (“ERO”), NERC is authorized to establish and enforce mandatory reliability standards, subject to FERC review. FERC also reviews NAESB standards and incorporates them into its regulations by reference. TAPS works to ensure representation at both NERC and NAESB, with the late Bill Gallagher mobilizing and coordinating TAPS efforts to monitor and participate in activities at both organizations to protect the interests of TDUs. From Bill Gallagher’s passing in 2021 through the end of 2024, Brian Evans-Mongeon (Utility Services) has headed up TAPS NERC/NAESB efforts, taking on Bill’s responsibilities on the NERC Member Representatives Committee (“MRC”), the ERO Business Plan and Budget Group, the NAESB Wholesale Electric Quadrant Executive Committee and the NAESB Board of Directors. Roy Jones (ElectriCities), TAPS Executive Director Tom Heller, and Scott Tomashefsky (NCPA), also served on the MRC in 2024. Additionally, Mr. Tomashefsky served as chair of the Compliance and Certification Committee, and as such is a member of the Standing Committee Coordination Group and of the Enterprise-Wide Risk Committee. John Stevens (City Utilities of Springfield) is Vice Chair of the Reliability and Security Technical Committee, on which another TAPS member also serves. TAPS members also have a presence on the Reliability Issues Steering Committee and Standards Committee, and on significant drafting teams. (Effective January 1, 2025, Devon Tremont (Utility Services) will be heading up TAPS NERC/NAESB efforts).

TAPS has also made its voice heard on reliability issues through submissions to FERC in NERC and NAESB-related proceedings, as well as submission of comments to NERC. TAPS attempts to maximize its impact by filing separate TAPS comments that reflect the distinct viewpoint of TAPS members, both as users highly dependent on the bulk electric system (“BES”) facilities owned by others and as entities subject to NERC’s mandatory reliability standards for our own BES facilities, or where appropriate, submitting joint comments with all or portions of the rest of the industry to emphasize the widespread support for a position.  Insiders have told us that seeing TAPS and EEI on the same submission to FERC sends a strong message. While a number of these efforts are still playing out, there is no doubt that in 2024 TAPS played an important role in the ever-evolving relationship among FERC, NERC, and stakeholders.

TAPS 2024 NERC and NAESB-related activities

  • Extreme Cold Weather Grid Operations, Preparedness, and Coordination (NERC Project No. 2021-07, RD23-1, RD24-5, NERC Project 2024-03)
    • October 28, 2022 NERC submits petition to FERC in Docket No. RD23-1 for approval of EOP-011-3 and EOP-012-1.
    • December 23, 2022 TAPS and APPA submit joint comments, in response to competitive generators’ requests for FERC to ensure their ability to recover EOP-012-1 compliance costs, arguing that cost recovery is beyond the scope of the current proceeding and that granting competitive generators guaranteed cost recovery on top of market-based rates would be contrary to FERC precedent.
    • February 16, 2023 FERC issues order approving proposed standards and directing various modifications. FERC finds that cost recovery is beyond the scope of the proceeding.
    • March 20, 2023 EPSA and other generator associations request rehearing of FERC’s February 16 order, arguing that FERC should have addressed generator cost recovery.
    • June 29, 2023, FERC issues an order addressing arguments raised on rehearing, reaching the same result as the February 16, 2023 order, finding that cost recovery is outside the scope of the proceeding.
    • February 16, 2024 NERC submits EOP-012-2 and Implementation Plan to FERC for approval (Docket No. RD24-5).
    • February 16, 2024 NERC submits a compliance filing regarding its plan to gather and analyze certain data related to generator owner declared constraints and the performance of freeze protection measures during future extreme cold weather events.
    • March 21, 2024 ISO/RTO Council submits protest asking FERC to reject and remand EOP-012-2, arguing, among other things, that the standard should not permit generators to declare a “constraint” based on economic barriers to winterization (and should be made stricter in other ways as well), but stating that generator cost recovery is important and should be addressed by FERC outside the context of reliability standards.
    • March 26, 2024 TAPS moves to intervene out of time in Docket No. RD24-5.
    • April 4, 2024 NERC submits reply comments defending EOP-012-2 against ISO/RTO Council’s arguments.
    • April 5, 2024 TAPS submits reply comments arguing that EOP-012-2 meets FERC’s directives and cost-based constraints should be permitted, and asking FERC to reiterate that cost recovery is outside the scope of this proceeding and that generators and RTOs/ISOs can file to change their rates or market mechanisms if they believe generators do not have an adequate opportunity to recover their compliance costs.
    • April 16, 2024 ISO/RTO Council responds to NERC’s April 4 reply, mischaracterizing TAPS’s April 5 comments as supporting the ISO/RTO Council position.
    • April 22, 2024 TAPS responds to ISO/RTO Council reiterating TAPS’s position to clarify the record.
    • June 27, 2024 FERC issues an order accepting the proposed extreme cold weather standard while directing additional changes. FERC reiterates that cost recovery is outside the scope of the proceeding and more appropriately addressed in proceedings pursuant to FPA Sections 205 and 206; and agrees with TAPS that it is appropriate to exempt from certain requirements of generators that do not self-commit and are not required to operate at or below 32 degrees, even if those generators may be called upon to assist in mitigation of emergencies. FERC characterizes its “five core directives” as “targeted modifications necessary to fully address issues identified in the Commission’s prior February 2023 Order,” and directs that the revised Reliability Standard be submitted within 9 months, i.e., by March 27, 2025.
    • July-August 2024 NERC forms new Project No. 2024-03 to address FERC’s directives. Jonathan Davidson (City Utilities of Springfield) is appointed to the Standard Drafting Team.
  • Registration of Inverter-Based Resources (RD22-4, RR24-2)
    • November 17, 2022 FERC issues order in Docket No. RD22-4 directing NERC to develop a work plan to identify and register owners and operators of unregistered BPS-connected inverter-based resources (“IBRs”) that have an aggregate, material impact on reliable operation of the BPS.
    • February 15, 2023 NERC submits its IBR Registration Work Plan to FERC for approval. The work plan proposes to revise NERC’s Rules of Procedure to include generator owner-IBR (“GO-IBR”) as a new registered entity function.
    • March 20, 2023 TAPS, APPA, EEI, and LPPC submit joint comments to FERC supporting the work plan in concept, noting the need to refine the GO-IBR concept through NERC’s stakeholder process, and asking FERC to require NERC to add initiation of the standards development process to its timeline.
    • May 18, 2023, FERC approves NERC’s IBR Registration Work Plan filing. Consistent with TAPS’s comments, FERC does not rule on the preliminary GO-IBR registration thresholds described in NERC’s Work Plan; and FERC states that “the development of new or modified Reliability Standards is outside the scope of this proceeding.”
    • August 16, 2023, NERC submits IBR Work Plan Progress Update to FERC.
    • August 31, 2023, TAPS, APPA, EEI, and LPPC submit joint comments to FERC on the Progress Update, emphasizing that while they were encouraged by the improvements NERC made in the revised draft Registry Criteria language in partial response to stakeholder concerns regarding its original draft, further revisions are necessary.
    • September 12, 2023 NERC posts proposed ROP revisions adding new GO-IBR and GOP-IBR categories to Appendix 5B (Statement of Compliance Registry Criteria), with conforming changes to Appendices 2 (Definitions Used in the Rules of Procedure) and 5A (Organization Registration and Certification Manual).
    • October 30, 2023 TAPS submits comments to NERC urging clarifications to proposed Registry Criteria language.
    • March 19, 2024 NERC submits proposed Rules of Procedure changes to FERC (Docket No. RR24-2), proposing to expand the existing Generator Owner and Generator Operator categories rather than creating new, independent categories, and implying in its filing that the bulk power system (the statutory term defining the limits of FERC’s reliability jurisdiction) includes all generation 20 MVA and above connected at 40 kV and above.
    • April 18, 2024 TAPS submits motion to intervene and limited comments asking FERC to make clear that in acting on NERC’s petition, it is not making any determination regarding the scope of the bulk power system.
    • June 27, 2024 FERC issues order approving NERC’s proposed revisions to its Rules of Procedure. FERC clarified, in response to TAPS’s comments, that in approving NERC’s revisions, FERC is not determining the boundaries of the Bulk Power System.
    • August 26, 2024 NERC submits a compliance filing, as directed in FERC’s June 27, 2024 order, in which it clarifies that the term “generating resources” as used in the revised definitions of GO and GOP includes all IBRs that provide energy for load, including battery energy storage systems and fuel cells.
    • October 30, 2024 FERC approves NERC’s compliance filing.
  • Reliability Standards for Inverter-Based Resources (RM22-12, RM25-3)
    • November 17, 2022 FERC issues NOPR proposing to direct NERC to develop new or modified Reliability Standards addressing data sharing, model validation, planning and operational studies, and performance requirements for IBRs.
    • February 6, 2023 TAPS, APPA, EEI, LPPC, and NRECA submit joint comments generally supporting revisions to standards to address IBR impacts, but drawing FERC’s attention to standards projects already underway at NERC to address some of the concerns cited in the NOPR, and noting limitations on the ability of TOs and DPs to collect and verify data regarding third party unregistered IBRs and IBR-DERs on their systems.
    • March 6, 2023 TAPS, APPA, EEI, LPPC, and NRECA submit joint reply comments supporting NERC’s request for flexibility in responding to proposed requirements of DPs and TOs to collect data and verify modeling for third-party unregistered IBRs and IBR-DERs on their systems, and providing further detail regarding the associated challenges.
    • October 19, 2023 FERC issues Order 901, moderating the NOPR’s proposed directives by permitting TOs and DPs that are unable to provide accurate third-party IBR data to system planners and operators to instead provide estimated data with an explanation of the estimation method and of the limitations on the data and on the availability of data.
    • August 2024 While two of the three standards due to FERC in November 2024 are approved by the ballot body, one (PRC-029, Project No. 2020-02) is not. In response, the NERC Board of Trustees for the first time invokes its authority under Rule 321 of NERC’s Rules of Procedure.
    • September 2024 Pursuant to Rule 321, NERC convenes a technical conference to discuss PRC-029. Following the conference, the Standards Committee revises and posts a new draft of PRC-029. The revised draft is approved by the ballot pool.
    • November 4, 2024 NERC files PRC-024-4 and PRC-029-1 for FERC approval, and also proposes the retirement of PRC-024-3 and the addition of the newly defined term “Ride-through” to the NERC Glossary of Terms.
    • December 19, 2024 FERC issues a Notice of Proposed Rulemaking in Docket No. RM25-3-000 proposing to approve NERC’s November 4 filing and to direct NERC to develop and submit two additional informational filings.
  • Draft Standard Authorization Request regarding definitions of Inverter-Based Resource owners/operators and facilities (NERC Project 2024-01)
    • February-April 2024 Following NERC submission to FERC of proposed IBR owner/operator registration changes that seem likely to cause confusion and delay in standards development and compliance, including hampering NERC’s compliance with Order 901, TAPS develops a draft Standard Authorization Request proposing revision of the NERC Glossary definitions of “Generator Owner” and “Generator Operator” for consistency with NERC’s revised Rules of Procedure, and the development of a NERC Glossary term for IBR facilities that meet the new Rules of Procedure registration thresholds.
    • May 17, 2024 TAPS, joined by APPA, EPSA, and LPPC, submits draft Standard Authorization Request to NERC.
    • July 6, 2024 At NERC Staff’s request, TAPS, APPA, EPSA, and LPPC submit a somewhat revised draft Standard Authorization request, along with a technical support document.
    • July 17, 2024 Standards Committee accepts draft Standard Authorization Request for posting and assigns it to NERC Project 2024-01, which is the Standard Drafting Team handling an existing NERC Staff Standard Authorization Request to update the Glossary definitions of Generator Owner and Generator Operator consistent with the revised Rules of Procedure definitions.
    • August 2024 Colten Mitchell (IMPA) is appointed to the Project 2024-01 Standard Drafting Team. The team’s first task is to review comments submitted regarding the draft SAR.
    • September 16, 2024 TAPS submits comments to NERC supporting the draft SAR.
  • Supply Chain Risk Management Notice of Proposed Rulemaking (RM24-4)
    • September 19, 2024 FERC issues a NOPR proposing to direct NERC to develop new or modified Reliability Standards to address the “(A) sufficiency of responsible entities’ [Supply Chain Risk Management (“SCRM”)] plants related to the (1) identification of, (2) assessment of, and (3) response to supply chain risks; and (B) applicability of SCRM Reliability Standards to [protected cyber assets (“PCAs”)].
    • December 16, 2024 TAPS files a motion for leave to file limited comments and limited responsive comments, supporting the comments of APPA/LPPC in advocating that FERC consider centralized approaches (as opposed to decentralized, utility-specific compliance requirements) to address security risks associated with vendors’ software, hardware, or services.
  • NERC’s Five-Year Performance Report and Supplemental Filing (RR24-4)
    • July 19, 2024, NERC submits its five-year performance assessment for the 2019-2023 period.
    • November 8, 2024 NERC submits a supplemental filing proposing enhancements to its Compliance Management and Enforcement Program (“CMEP”), including the introduction, where appropriate, of a Potential Noncompliance abeyance period after a Reliability Standard becomes effective.
    • November 22, 2024 TAPS, APPA, LPPC, and EPSA intervene and file supportive comments on NERC’s proposal, emphasizing that NERC rightly confined the scope of its Supplemental Filing by confirming that the filing did not require Rules of Procedure changes.
    • December 19, 2024 FERC issues an order accepting NERC’s performance assessment and Supplemental Filing, raising no concerns with NERC’s new CMEP approach but requiring NERC to track additional metrics going forward.
  • State/Municipal and TDU Sector Policy Input to NERC Board of Trustees
    • The NERC MRC members from the State/Municipal and TDU Sectors (“SM-TDUs”) submit joint policy input to the Board of Trustees in response to the Board’s quarterly request for input. The responses are generally coordinated by TAPS, APPA, and LPPC.
      • February 5, 2024 SM-TDUs provide input on steps NERC can take to promote greater alignment and engagement (generally), as well as the steps NERC can take to facilitate greater engagement from new entrants in the industry; continued engagement from incumbent players in the industry; and improved alignment among subject matter experts (“SMEs”), the MRC, trade associations, industry leadership, and NERC.
      • February 7, 2024 TAPS, APPA, EEI, EPSA, LPPC, and the North American Generator Forum provide additional joint input on proposed IBR registration-related changes to NERC’s Rules of Procedure, and the process by which those changes were developed.
      • May 2, 2024 SM-TDUs provide input affirming the importance of maintaining MRC Input letters and responses, as well as additional input opportunities.
      • July 24, 2024 SM-TDUs provide input affirming the importance of (1) considering affordability for ratepayers; (2) collaborating with stakeholders; (3) staying within the limits of NERC’s statutory authority; (4) improving flexibility and reducing administrative burdens associated with the Compliance Monitoring and Enforcement Program; and (5) harmonizing federal reporting requirements on NERC’s Enterprise Long-Term Strategy.

TAPS 2024 FERC (Non-Reliability) Efforts

  • Building for the Future Through Electric Regional Transmission Planning and Cost Allocation and Generator Interconnection (RM21-17, AD22-8)
    • April 21, 2022 FERC issues NOPR proposing changes to regional transmission planning and cost allocation and expanded federal rights of first refusal (“ROFR”) conditioned on joint ownership.
    • August 17, 2022 TAPS submits comments offering constructive modifications generally in support of the NOPR, and focused on narrowing FERC’s proposed conditional ROFR reforms to foster joint ownership arrangements with TDUs.
    • September 19, 2022 TAPS submits reply comments addressing initial comments pertinent to TAPS’s approach to the conditional ROFR.
    • October 6, 2022 FERC holds Commissioner-led technical conference regarding transmission planning and cost management for transmission facilities developed through local or regional transmission planning processes. Dan O’Hagan (FMPA) submits a written statement and participates as a panelist on behalf of FMPA and TAPS; Randy Howard (NCPA) and Lisa McAlister (AMP) also participate as panelists.
    • December 23, 2022 FERC issues notice inviting post-technical conference comments.
    • March 23, 2023 TAPS submits post-technical conference comments.
    • May 13, 2024 FERC issues Order 1920 which, among other things, requires Long-Term Regional Transmission Planning for Public Policy Requirements and cost allocation for the facilities selected in those Long-Term Regional Transmission Plans. Consistent with TAPS’s request, FERC declines to finalize the NOPR’s overbroad conditional joint ownership ROFR. FERC does not adopt the narrowed conditional joint ownership ROFR advocated by TAPS, but “will continue to consider potential federal right[s] of first refusal reforms along with other transmission reforms in the future.” Phillips/Clements concurrence reiterates, highlighting the need to encourage joint ownership with public power and cooperatives.
    • June 12, 2024 Many rehearing requests filed, including TAPS’s limited rehearing request.
    • September 19, 2024 TAPS intervenes in the consolidated appeals of Order 1920 in the Fourth Circuit.
    • November 21, 2024 FERC issues Order 1920-A, expanding the role of the states in the Order 1920 process. FERC rejected most non-state-role related changes/clarification requests from other parties, but TAPS’s limited rehearing request resulted in several “wins” on rehearing, including the requirement that transmission providers consult with their stakeholders to develop the processes, procedures, and OATT revisions necessary to comply with Order No. 1920.
  • Compensation for Reactive Power Within the Standard Power Factor Range (RM22-2)
    • March 21, 2024 FERC issues Notice of Proposed Rulemaking to modify the pro forma OATT to eliminate compensation for reactive power within the standard power factor range (0.95 leading to 0.95 lagging).
    • May 28, 2024 TAPS submits comments supporting the NOPR.
    • October 17, 2024 FERC issues Final Rule, which eliminates compensation for reactive power within the standard power factor range (0.95 leading to 0.95 lagging).
    • December 19, 2024 Rehearing requests were filed and denied by operation of law.
  • Implementation of Dynamic Line Ratings (RM24-6)
    • June 27, 2024 FERC issues ANOPR in RM24-6 presenting potential reforms to improve the accuracy of transmission line ratings. These reforms include requiring DLRs that reflect (1) reflect solar heating based on the sun’s position and forecastable cloud cover on all lines; and (2) forecasts of wind conditions on certain transmission lines.
    • October 15, 2024 TAPS files comments urging FERC, if it moves forward with a NOPR, to consider additional ways to balance costs and benefits in a manner that appropriately reflects regional differences and otherwise ensures the benefits of DLRs significantly exceed their costs, and reduces opportunities for discrimination.
  • Inquiry Regarding Federal Power Act Section 203 Blanket Authorizations for Investment Companies (AD24-6)
    • December 19, 2023 FERC issues Notice of Inquiry focusing on three main issues: (1) Potential changes to FERC’s policy on granting blanket authorizations under Federal Power Act section 203(a)(2) for transactions that meet certain criteria; (2) whether FERC’s policy should include special considerations based on the size of an investment company engaged in transactions subject to FPA section 203; and (3) what factors FERC should consider when evaluating “control” over public utilities.
    • March 26, 2024 TAPS submits comments recommending that FERC revitalize its FPA section 203(a)(2) blanket authorization policy, with particular attention on large investors, and reject calls to weaken FERC’s implementation of section 203(a)(2).