FERC Order 2023 Explained: How the U.S. Is Fixing Interconnection Queues

The problem it targets

Before a power plant or battery can connect to the high-voltage grid, the grid operator must study what upgrades are needed. By the end of 2023, Lawrence Berkeley National Laboratory's Queued Up report counted roughly 2,600 GW of generation and storage waiting in U.S. queues. That is more than twice the existing U.S. power fleet, and most of it is solar, storage and wind. Typical time from request to commercial operation had stretched to around five years, and most queued projects ultimately withdraw.

Under the old serial process, each request was studied in order. Speculative projects clogged the line, and when they dropped out, the projects behind them had to be restudied.

What Order 2023 changed

• Cluster studies: transmission providers must study requests in groups ("clusters") during set windows, rather than one at a time.
• First-ready, first-served: projects must show readiness to enter and stay in the queue.
• Financial commitments: higher study deposits that scale with project size, plus proof of site control.
• Withdrawal penalties: projects that drop out late pay penalties, which discourages speculative requests.
• Study deadlines with penalties for providers: transmission providers that miss study deadlines face financial penalties, with some exceptions.
• Affected systems: standardized procedures for studying impacts on neighboring grids.
• Technology updates: providers must consider alternatives such as advanced power-flow control and allow multiple resources to share one interconnection request. Surplus interconnection service gets streamlined treatment.

FERC largely upheld the rule on rehearing in Order No. 2023-A (March 2024). Grid operators then filed compliance plans, which are being implemented on staggered timelines.

What it doesn't do

Order 2023 fixes the process. It doesn't by itself build transmission. Many queue delays ultimately come from a lack of grid capacity, which needs regional planning and new lines. FERC addressed that separately in Order No. 1920 (May 2024) on long-term regional transmission planning.

Who it affects

• Developers: higher upfront costs and stricter readiness rules, but a more predictable timeline.
• Grid operators and utilities: new cluster processes and deadlines.
• Consumers: indirectly, through faster access to cheaper new generation if the reforms work.

Note: ERCOT (most of Texas) is largely outside FERC's jurisdiction and runs its own interconnection process.

Bottom line

Order 2023 is the biggest change to U.S. generator interconnection rules in about two decades. Its success will show up in queue data over the next few years: fewer speculative requests, faster studies, and more projects actually reaching operation.