Tactics for States to Influence Regional Energy Markets and Planning

Examples of ways state leaders can engage with FERC

States can engage formally and informally to influence outcomes at FERC that impact RTO/ISO market rules and planning. Typically, state public utility commissions and consumer advocate offices are most engaged on issues before FERC, but governors, state energy offices, and legislators can also exert influence. States often participate collectively through various regional state committees, such as the Organization of MISO States (OMS), the Regional States Committee (RSC) in PJM, the Organization of PJM States, Inc. (OPSI), the Consumer Advocates of PJM States (CAPS), and the New England States Committee on Electricity (NESCOE).

Educating FERC commissioners and staff about state priorities

State entities can request meetings with FERC Commissioners and staff, participate in FERC technical conferences and workshops, invite FERC Commissioners to state and regional convenings (e.g., regional meetings of the National Association of Regulatory Utility Commissioners).

Engaging in FERC proceedings

State entities (individually or as a group) can weigh in on FERC rulemakings, comment or protest RTO/ISO proposals, file complaints, and submit letters.

Engaging congressional delegations in their oversight of FERC

State decision-makers can also help to inform the positions and priorities of congressional delegations, which have important oversight authority over FERC. Specifically, Congress can pass legislation to direct FERC to take certain actions or to clarify FERC’s authority. The Senate is also responsible for confirming FERC Commissioners after they are nominated by the President.

Energy and transmission issues span multiple agencies and leadership roles. States that coordinate across government functions tend to be more effective at influencing regional outcomes. Beyond formal authority, state leaders have numerous informal or procedural tools to influence their RTOs/ISOs and elevate state priorities. For example:

Legislation

While states do not have direct jurisdiction over RTOs/ISOs, they can pass legislation to increase transparency about stakeholder votes, evaluate potential reforms relevant to RTO/ISO markets, require data and reporting regarding interconnection upgrade timelines, ensure sufficient resourcing for RTO/ISO engagement, and make improvements to rules or processes within their jurisdiction that interface with RTO/ISO outcomes. Legislative opportunities specific to transmission planning and infrastructure investment are discussed in more detail below.

Legislative Hearings

Bringing RTO or utility representatives before legislative committees to testify can increase transparency, prompt public accountability, and signal political priorities.

Letters and Public Comments

Legislators and governors can issue public letters or file comments with RTO leadership and Board of Directors, offering guidance or raising concerns around market rules, transmission planning, and governance.

Direct Engagement With Other States

Speaking collectively with RTO/ISO staff and leadership, forming working groups, or appointing state representatives to advisory councils are all ways to ensure state voices are heard in regional planning.

Participation in RTO/ISO Stakeholder Processes

State entities can also participate directly in RTO/ISO stakeholder processes on issues ranging from market reforms to transmission planning to generator interconnection and more. Outside of SPP, states generally do not have a vote in these processes, although state consumer advocates are granted voting rights. Even without a vote, states can bring forward proposals, raise concerns, express opposition, and ask questions. States also have a heightened role and responsibility with respect to transmission planning in the wake of FERC Order No. 1920, including the opportunity to request planning scenarios and put forward cost allocation proposals.