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FERC issues Order No. 845-B on LGIA and LGIP [free access]

October 3, 2019

The Federal Energy Regulatory Commission (FERC) has issued an Order granting in part, and denying in part, requests for further clarification on its reforms on large generator interconnection agreements (LGIA) and large generator interconnection procedures (LGIP). The Order No. 845-B affirms FERC's prior findings that the expansion or building of an interconnection by a customer does not impede the transmission owner’s ability to recover a return on network upgrades. The Order also reiterates FERC's determination not to revise the pro forma LGIA's indemnity provisions.

 

Order No. 845—FERC's Final Rule revising the pro forma LGIP and LGIA—made various reforms to improve certainty for interconnection customers, promote more informed interconnection decisions, and enhance the interconnection process. Among these changes, FERC expanded interconnection customers' abilities to exercise the option to build transmission providers' interconnection facilities and standalone network upgrades, beyond instances where the transmission provider is unable to meet the interconnection customer's preferred construction timeline.

 

A subsequent decision, Order No. 845-A, among other things, rejected arguments that these revisions contradicted the US Court of Appeals for the District of Columbia (DC) Circuit.