Montana PSC Files Request for Rehearing of Federal Energy Regulatory Commission Transmission Order 1920

• June 11 2024

Earlier today, at its regular business meeting, the Montana Public Service Commission (PSC) unanimously approved a “Request for Rehearing” which will be filed with the Federal Energy Regulatory Commission (FERC) later today regarding FERC Order 1920 entitled, “Building for the Future Through Electric Regional Transmission Planning and Cost Allocation,” issued on May 13, 2024. The PSC, by taking this action today, is acting to protect Montana electricity ratepayers from federal policy overreach that will result in higher energy bills.

Specifically, the PSC cited three issues and errors regarding FERC Order 1920:

• Without a voluntary state agreement process, FERC erred by exceeding its jurisdiction and interfering with state decisions about generation resource planning and approval.
• FERC erred by adopting a Final Rule that violates the cost causation principle of regulatory ratemaking in which cost causers should be the cost payers.
• FERC erred by adopting a Final Rule that undermines state’s roles in transmission planning and ratemaking and does not result in just and reasonable rates.

PSC President James Brown said of FERC Order 1920, “This appears to be a clear attempt to socialize the cost of carbon goals in some states by violating the cost causation principle of regulatory ratemaking,” adding, “This rule would have the people of Montana and other Rocky Mountain states pay for the green policy mandates of California, Oregon, Washington, the federal government and the Biden Administration.”       

Commissioner Tony O’Donnell, the PSC point person on many national and regional transmission and resource planning issues added, “This is a federal takeover. This is not a small, arcane rule. It represents a ‘sea change’ in state authority as it relates to the federal government.”

President Brown added, “As my colleagues have stated, this Order 1920 is breathtaking in its scope in that it exceeds the jurisdiction of FERC and frankly, I believe it has a clear legal problem in that it is not authorized by Congress and I suspect if this order is challenged in court, which I suspect it will be, that will be a problem for FERC in terms of defending its legality.  This is literally a power grab by the federal government. Pun intended.”     

The Montana Public Service Commission regulates private investor-owned natural gas, electric, telephone, water, and sewer companies, certain motor carriers, and oversees natural gas pipeline safety and intrastate railroad safety. The Commission works to ensure that Montanans receive safe and reliable service from regulated public utilities while paying reasonable rates.

Tags: