On July 27, 2023, the Federal Energy Regulatory Commission (FERC) approved Order 2023, which aims to speed up interconnection processes.[1] The rule is the first major change to FERC’s interconnection requirements in 20 years. Order 2023 largely follows a Notice of Proposed Rulemaking (NOPR) released in June 2022. The rule adopts a “first-ready, first-served” cluster study approach, replacing the practice of looking at individual proposals on a first-come, first-served basis. According to FERC, this approach “will increase the efficiency of the interconnection process, help minimize delays and improve cost allocation by analyzing the transmission system impacts of multiple projects at once.”

It requires interconnection customers to pay increased study deposits, meet more stringent site control requirements, and pay commercial readiness deposits. In addition, Order 2023 sets deadlines for regional transmission organizations (RTOs) and other transmission providers to complete interconnection studies, with penalties set for missing deadlines. The rule also requires transmission providers to allow more than one generating facility on a shared site at a single point of interconnection and share an interconnection request. Transmission operators have 90 days to file plans with FERC explaining how they will put the rule in place.

[1] https://www.ferc.gov/news-events/news/fact-sheet-improvements-generator-interconnection-procedures-and-agreements