Transmission Planning and Cost Allocation

Order 1000 established comprehensive requirements for regional and interregional transmission planning and cost allocation, marking a landmark shift in how the U.S. power grid is expanded. The order required all transmission providers to participate in an open regional planning process that considers economic, reliability, and public policy transmission needs — not just immediate reliability needs. Critically, Order 1000 eliminated the federal right of first refusal for incumbent transmission owners to build new transmission facilities selected in the regional plan, opening multi-billion dollar projects to competitive development. It also required neighboring transmission planning regions to coordinate on interregional needs, ensuring that major infrastructure decisions account for cross-regional benefits and costs.