FERC Order No. 2023: Generator Interconnection Procedures and Agreements Impacting the Energy Industry

On September 6, 2023, the Federal Energy Regulatory Commission’s (FERC’s) Order No. 2023 was officially published in the Federal Register. Titled “Improvements to Generator Interconnection Procedures and Agreements,” this Final Rule had already been issued by FERC as early as July 28, 2023. Since its issuance, numerous transmission owners, generation developers, trade associations, and regional transmission organizations (RTOs) have filed requests concerning its rehearing and clarification with the agency.

Order No. 2023 is an attempt to improve aspects of generator interconnection procedures and agreements, addressing issues that are profoundly relevant to stakeholders in the generation, transmission, and broader energy industry.

As the procedures involving interconnection, such as the queue process and pro forma agreements, can significantly affect the cost, feasibility, and timeline for developing new generation resources, Order No. 2023 and subsequent regulatory responses will be of great interest to stakeholders.

Given the breadth and depth of concerns raised by multiple stakeholders, legal professionals particularly interested in energy regulation and infrastructure development might want to monitor closely developments related to this order.

It is crucial that those affected by these changes are aware of and understand the evolving rules and regulations surrounding energy production and regulation. As the regulatory landscape continues to change, those informed will be better positioned to adapt and respond to these changes.