Deadlines delayed are not deadlines avoided. That is the stark reality facing electric utilities, even as many independent system operators (ISOs) and regional transmission organizations (RTOs) have requested extensions for compliance with FERC Order 881.
That order is driving a major shift in how transmission operators manage system ratings. By requiring ambient adjusted ratings (AARs) based on hourly forecasted temperature, the order encourages more accurate and dynamic assessments of line capacity.
For many operators, especially smaller utilities and municipal organizations within ISO and RTO territories, this shift can feel overwhelming. Operators will need to source temperature data for various locations, calculate ratings for each piece of equipment under various ambient conditions, and store historical ratings to meet record retention requirements. Implementing the hardware and software solutions is a tall order upfront.
But acting early to comply provides clear operational and regulatory benefits for operators that will endure over the long term. Here are five strong reasons early action matters as transmission operators navigate the evolving requirements.
1. Avoid the Crunch
Compliance isn’t optional. Delaying implementation risks later congestion in vendor availability, tight project timelines and increased stress on internal resources once the regional operators begin acting to achieve compliance. Starting now means securing support, aligning budgets and refining processes before pressure mounts.
2. Improve Operational Visibility
AARs require regular updates and integrations with weather forecasts and system operations. Early compliance helps operators identify data gaps and test connectivity, giving teams time to build and refine robust workflows that result in better outputs.
3. Streamline With ISO/RTO Standards
Transmission operators often face dual layers of compliance — with FERC regulations and ISO/RTO requirements. Starting early allows more time for coordinated planning and smoother alignment with changing regional guidance.
4. Enhance Grid Efficiency
AARs enable a more accurate understanding of available transmission capacity at any given moment. Implementing hourly ratings ahead of schedule can help operators optimize line usage, potentially defer costly equipment replacements, and improve ongoing service reliability.
5. Gain Stakeholder Confidence
Early adopters demonstrate their commitment to regulatory alignment, transparency and operational excellence. This builds trust with regulators, market participants, customers and the public.
Although the original deadline for compliance with Order 881 was in July 2025, FERC has already approved extension requests for some ISO/RTOs, and other extension requests remain under consideration. The extended compliance dates range from April 2026 for PJM to December 2028 for NYISO.
No matter how soon a transmission operator needs to comply, the utility stands to gain operational benefits from optimized capacity calculations as soon as it can effectively implement the hourly AAR requirement. Deploying the right tools — such as FaciliRate, a digital ratings management platform developed by Burns & McDonnell — will help operators simplify data collection and management.
Utilities need more than a stopgap solution. Working with the right platform and a knowledgeable partner will help modernize transmission systems while meeting the regulatory requirements of FERC 881, ultimately continuing to reinforce a resilient grid.
FaciliRate offers a streamlined approach to AAR and dynamic line rating (DLR) management. It provides automated compliance tools, modular architecture, data transparency and operational reliability.
