Requires transmission owners to join regional transmission organizations approved by Federal Energy Regulatory Commission. **
What changed between versions
The core requirement was narrowed from applying to all electric transmission facilities in the state to only those placed in service on or after January 1, 2027. Previously, no transmission owner could own or control any facility without joining an RTO; now only new post-2027 facilities are subject to the mandate.
New subsection b(1) explicitly states that transmission owners are not required to transfer operational control of facilities placed in service before January 1, 2027 to an RTO.
New subsection d excludes any electric transmission facility or project that is cancelled and never placed in service from the requirements.
New subsection b(2) grants transmission owners the right to voluntarily include any pre-2027 facility in an RTO, and b(3) confirms they are not prohibited from withdrawing such facilities if federal law permits.
New subsection c protects FERC-approved transmission rates (including adders) for facilities placed in service before January 1, 2027, and states the bill cannot be used as a basis to modify any rate, charge, or incentive for those facilities. It also preserves the Division of Rate Counsel's independent statutory authority.
New subsection e explicitly states the section does not govern ownership, operation, or control of pre-2027 facilities and does not require any transmission owner to divest, transfer, or relinquish any ownership interest, contractual right, or operational arrangement in existence on the effective date.
The compliance specifications in subsection b were restructured: the original list of 9 detailed specifications for what a transmission entity must do was replaced with a simpler requirement that the owner join 'an RTO,' with the detailed specifications effectively removed from the operative text.
A new Section 1 was added containing legislative findings declaring that RTO membership for post-2027 facilities is necessary for regulatory certainty, protecting state investment in regional transmission infrastructure, and ensuring reliable operation regardless of individual owner business strategy changes.
The term 'transmission entity' was renamed to 'RTO' throughout the bill. Several definitions (Affiliate, Electric public utility, Rate pancaking, User) were deleted in committee markup, and 'functionally similar' was changed to 'functionally-similar.'
The effective date was changed from 'immediately' to January 1, 2027, aligning the bill's activation with the start date of its substantive requirements.
