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RECENT DEVELOPMENTS — 2023
operation , on the one hand , with more stringent requirements for generation projects to enter and remain in the interconnection queue to reduce the number of projects in the queue , eliminating projects that are not viable , on the other hand . Order No . 2023 also implements a set of reforms intended to incent the use of new grid and transmission technologies . One significant change relates to the use of a single interconnection agreement for more than one project behind a single point of interconnection .
Order No . 2023 transitions the currently effective pro forma “ first-come , firstserved ” approach to generator interconnection found in many Transmission Providers ’ OATTs to a first-ready , first-served cluster model approach to generator interconnection . The “ first-ready , first-served ” cluster study approach — which is already in place in the PJM market and certain other ISO / RTO markets — is intended to result in more efficient processing of generator interconnection requests . In addition to requiring Transmission Providers to adopt the cluster study approach , another reform affecting Transmission Providers is new penalties for Transmission Providers that miss cluster study deadlines . 1 Significantly , these penalties cannot be recovered in transmission rates of investor-owned Transmission Providers . Order No . 2023 ’ s requirements also include increasing financial commitments and readiness requirements for generator developers throughout the cluster study process . For example , interconnection customers will now be required to demonstrate the viability of their projects , and their intention to develop those projects , earlier in the interconnection process .
In addition to ensuring compliance with Order No . 2023 , FERC intends to take action on related issues in the near future intended to respond to the proliferation of renewable generation and energy storage resources , including interregional transmission planning reforms , regional transmission planning reforms ( currently under consideration in a rulemaking proceeding ); transmission incentive reforms ; and participant-funding transmission reforms and transmission development reforms ( likely focused on cost control related to transmission development ).
1 . Overview
B . Developments in Offshore Wind
The U . S . offshore wind industry has had an action-packed year , with no shortage of significant legal developments and national headlines . The Department of the Interior ’ s Bureau of Ocean Energy Management ( BOEM ), the main federal agency responsible for leasing and permitting energy projects on the U . S . Outer Continental Shelf ( OCS ), proposed to overhaul and modernize its renewableenergy-program regulations , garnering input from project developers , stakeholders , and other federal and state agencies . The agency has also been working to review more than a dozen pending project applications while simultaneously
1 . However , FERC did provide for the potential for ISOs and RTOs to recover such penalty amounts from customers given their non-profit status .