Report/November2024MindtheRegulatoryGapHowtoEnhanceLocalTransmissionOversightrmi.org/2MindtheRegulatoryGap:HowtoEnhanceLocalTransmissionOversightAuthorsandAcknowledgmentsAuthorsClaireWaynerKajaRebane(formerlyRMI)ChazTeplinAllauthorsfromRMIunlessotherwisenoted.ContactsClaireWayner,cwayner@rmi.orgChazTeplin,cteplin@rmi.orgCopyrightsandCitationClaireWayner,KajaRebane,andChazTeplin,MindtheRegulatoryGap:HowtoEnhanceLocalTransmissionOversight,RMI,2024,https://rmi.org/insight/mind-the-regulatory-gap.RMIvaluescollaborationandaimstoacceleratetheenergytransitionthroughsharingknowledgeandinsights.Wethereforeallowinterestedpartiestoreference,share,andciteourworkthroughtheCreativeCommonsCCBY-SA4.0license.https://creativecommons.org/licenses/by-sa/4.0/.AllimagesusedarefromiStock.comunlessotherwisenoted.AcknowledgmentsTheauthorswouldliketothankthefollowingindividualsfortheirhelpfulcontributionstothisreport,suchasparticipatingininterviewsandreviewingearlydrafts.Allerrorsremainourown.CommissionerDavanteLewis,LouisianaPublicServiceCommissionFormerCommissionerTedThomas,ArkansasPublicServiceCommissionFormerChairmanKentChandler,KentuckyPublicServiceCommissionDonKreis,NewHampshireOfficeoftheConsumerAdvocateChairmanPhilBartlett,MainePublicUtilitiesCommissionCommissionerSarahFreeman,IndianaPublicUtilitiesCommissionErikHanser,MichiganPublicServiceCommissionCharlieInmanandAaronCahen,WashingtonUtilitiesandTransportationCommissionBrianLipman,NewJerseyDivisionofRateCounselChairpersonAndrewFrench,KansasCorporationCommissionEdSmeloff,consultantJoshWalters,ConnecticutPublicServiceCommissionGregPoulos,ConsumerAdvocatesofPJMStatesAriPeskoe,HarvardElectricityLawInitiativeJoshMacey,YaleLawSchoolNickLawton,EarthjusticeNickGuidi,SouthernEnvironmentalLawCenterrmi.org/3MindtheRegulatoryGap:HowtoEnhanceLocalTransmissionOversightAcknowledgments,continuedTylerFarrell,RMIRachelGold,RMIBevBendix,RMICarinaRosenbach,RMICamdenBurk,formerlyRMIAboutRMIRMIisanindependentnonprofit,foundedin1982asRockyMountainInstitute,thattransformsglobalenergysystemsthroughmarket-drivensolutionstoalignwitha1.5°Cfutureandsecureaclean,prosperous,zero-carbonfutureforall.Weworkintheworld’smostcriticalgeographiesandengagebusinesses,policymakers,communities,andNGOstoidentifyandscaleenergysysteminterventionsthatwillcutclimatepollutionatleast50percentby2030.RMIhasofficesinBasaltandBoulder,Colorado;NewYorkCity;Oakland,California;Washington,D.C.;Abuja,Nigeria;andBeijing.rmi.org/4MindtheRegulatoryGap:HowtoEnhanceLocalTransmissionOversightTableofContentsExecutiveSummary5Introduction:TheRegulatoryGap11TransmissionPlanningandRatemakingintheUnitedStates15FederalRatemakingAuthority15RegionalPlanning17HowLocalProjectsAreCurrentlyConsideredinRegionalPlanning.....................18HowFERCOrderNo.1920WillChangetheConsiderationofLocalProjectsinRegionalPlanning...19StateRegulatoryAuthority22CertificateofPublicConvenienceandNecessity.................................23IntegratedResourcePlanning............................................24State-LevelRateCases.................................................25EngaginginRegionalPlanning............................................26ConsequencesoftheRegulatoryGap27AddressingtheRegulatoryGap34RegionalReforms34ImplementRegional-FirstPlanning.........................................34StandardizeLocalProjectDefiniti...