This PJM TEAC special session focused on FERC Order 1920 compliance and PJM’s pathway to implement long-term, scenario-based transmission planning. FERC Order 1920 requires RTOs to develop forward-looking 20-year planning processes with defined benefit metrics and cost allocation methods. PJM used the session to refine its engagement timeline, discuss scenario design, and outline next steps for its December 12, 2025, compliance filing.
Key Discussion Items from PJM TEAC FERC Order 1920 Special Session
1. Planning Horizon and Scope
- PJM proposed adopting a 20-year planning horizon for transmission planning to align with FERC’s vision of more forward-looking, scenario-based planning.
- Stakeholders debated whether such an extended horizon was realistic given the uncertainty of long-term load forecasts, electrification pathways, and state policy changes.
- Many developers supported the long-term view, arguing it is essential for planning high-voltage transmission corridors that will underpin renewable integration. Others cautioned that too much focus on distant scenarios could dilute near-term reliability priorities.
2. Cost Allocation Under FERC Order 1920
- Cost allocation dominated the discussion. PJM presented a draft cost-sharing framework that relies on existing beneficiary-pays principles but integrates new benefit metrics.
- State representatives underscored their statutory authority over cost approval and emphasized the need for equitable methodologies that do not overburden certain states.
- Developers argued that projects with regional benefits, particularly renewable delivery corridors, must not be stalled by fragmented cost disputes.
3. Incorporating Public Policy Needs
- FERC Order 1920 requires planning processes to explicitly account for state and federal policy drivers such as clean energy mandates.
- Stakeholders asked how PJM would balance state-specific policies with broader regional goals. Some expressed concern that this could slow consensus-building if states diverge on priorities.
- PJM responded by pointing to the States Agreement on Transmission Planning (SATP) as the venue for building alignment.
4. Modeling Enhancements and Scenarios
- PJM outlined plans to expand its scenario modeling to capture electrification, storage deployment, extreme weather, and high-renewables futures.
- Stakeholders requested transparency into assumptions, stressing that developers need early visibility into sensitivities that may alter siting decisions.
- Several suggested that PJM publish draft modeling cases for feedback prior to formal studies.
5. Next Steps and Timelines
- PJM confirmed that draft compliance filings will be circulated later this year, with stakeholder input solicited through TEAC, the Planning Committee, and SATP.
- Multiple follow-up workshops are expected to refine cost allocation frameworks and modeling methodologies.
Key Takeaways from the PJM TEAC Special Session FERC Order 1920
The September 5 session underscored both the opportunity and complexity of FERC Order 1920 compliance. PJM must balance federal requirements, state authority, and stakeholder concerns to develop a workable planning framework. Developers should anticipate significant changes to transmission planning and cost allocation that will directly shape project economics.
We help developers navigate regulatory change with confidence. By combining engineering expertise with purpose-built tools like REST®, grid siting and analytics tool, we empower project teams to anticipate how Order 1920 will reshape siting and interconnection opportunities in PJM. Contact ZEG to evaluate scenario impacts and de-risk your interconnection plans.
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