Investment in interstate transmission has not kept pace with the need for more electricity capacity, despite wakeup calls such as the widespread Northeast and Midwest blackout in August 2003. Transmission siting authority has become the mantra for those who claim that the “not in my backyard” (NIMBY) syndrome is driving U.S. energy policy. FERC was given the opportunity to flex their national siting authority muscle with passage of the Energy Policy Act of 2005 (EPAct), but their game plan failed to pass court scrutiny. Today, siting new transmission remains a state’s rights issue as it has always been.
Transmission siting controversies are increasing given the growing number of renewable energy projects that want to interconnect with scarce transmission capacity. Now, another layer of complexity is in play due to the potential of a national renewable portfolio standard that portends hundreds if not thousands of new renewable projects that will all seek priority for grid access.…