Yesterday, FERC announced a major new initiative to revise the way new transmission is planned, owned and built, and how transmission costs will be recovered from customers. Order No. 1000 requires all public utility transmission providers and RTOs to make compliance filings within one year of the effective date to, among other things:  (1) incorporate planning for policy-driven transmission upgrades, such as those required to integrate renewable and demand resources; (2) include an interregional cost allocation method for new interregional transmission facilities that are deemed efficient or cost-effective; and (3) eliminate from Commission-approved tariffs and agreements a federal right of first refusal ("ROFR") for transmission facilities selected in a regional transmission plan for purposes of cost allocation, except that the requirement to remove ROFR rights will not apply to transmission upgrades, and utilities are not required to forgo ROFR rights that are granted under state or local laws. For a copy of the Final Rule, please click here.