On July 27, 2023, a significant regulatory shift occurred in the Federal Energy Regulatory Commission (FERC) as it unanimously chose to adopt Order No. 2023, titled “Improvements to Generator Interconnection Procedures and Agreements”. Publication in the Federal Register took place on Sept. 6, 2023, making the final rule effective from Nov. 5, 2023.
Cited as one of the longest in FERC’s history, this ruling is specifically aimed at streamlining the request process for interconnection customers. The aim is to rapidly advance the connection of emerging power projects to the electric grid.
Detailed compliance filings in respect to the new reform will be due by December 2023. This extended timeline will give companies ample opportunity to study the intricacies of the final rule and prepare appropriate compliance strategies.
The regulatory change is anticipated to bring robustness to the industry, as quickening the interconnection process of new power projects could potentially lead to increased industrial productivity and improved grid resilience. This development may be of particular interest to legal professionals advising clients in energy sectors or corporate entities with large energy demands.
The industry is advised to study the final rule extensively to better understand its implications. Despite the comprehensive nature of Order No. 2023, potential legal and operational questions still remain, and it’s anticipated that further clarifications and implementation guidance from FERC might follow in the future.