D.C. Circuit Court Affirms FERC Order No. 1000

The D.C. Circuit Court fully affirmed FERC Order No. 1000, confirming that FERC has the authority to require each transmission owning and operating public utility to participate in regional transmission planning that satisfies planning principles designed to prevent undue discrimination and preference in transmission service.

Specifically, the Final Rule requires that each transmission planning process has a method for allocating the costs of new transmission facilities in a regional transmission plan.

Forty-five petitioners challenged FERC's authority to adopt FERC No. 1000, contending that the FERC rule is "arbitrary and capricious" and unsupported by evidence. The Court held, however, among other things, that FERC does have the authority under Federal Power Act Section 206 to require transmission providers to participate in the regional planning process, and the plans must take into consideration transmission needs driven by public policy requirements. In addition, the Court ruled that FERC has the authority under Section 206 to require the removal of federal rights of first refusal provisions from tariffs and rate schedules upon determining that they are unjust and unreasonable practices affecting rates.

FERC Chairwoman Cheryl A. LaFleur issued a statement commending the Court's decision to confirm Order No. 1000. She stated that "Order No. 1000 is critical to the Commission's efforts to support efficient, competitive, and cost-effective transmission."

See: FERC Order No. 1000; Court Order; LaFleur's Statement.