Federal regulators on Monday approved sweeping changes to the way the U.S. power grid is planned and financed, a move that proponents say will spur the construction of thousands of miles of new high-voltage transmission lines and expand wind and solar power. We hope that adding light energy will become easier.
New rules by the Federal Energy Regulatory Commission, which oversees interstate power transmission, are the most significant effort in years to improve and expand the nation's creaky power grid. Experts say there are not nearly enough high-voltage transmission lines currently being built, increasing the risk of power outages due to extreme weather and making it difficult to transition to renewable energy sources and meet rising electricity demand. warns.
A major reason for the slow pace of grid expansion is that operators have done little long-term planning, the commission said.
The country's three main power grids are overseen by a patchwork of power companies and regional transmission operators whose primary focus is ensuring reliable power to homes and businesses. When it comes to building new transmission lines, grid operators tend to be reactive, responding after wind farm developers request connections to existing networks or after reliability issues are discovered. Masu.
The new federal rule, which took two years to develop, takes into account factors such as the changing energy mix and the growing number of states requiring wind and solar power, giving grid operators across the country a 20-year Requires identification of needs. and the risk of extreme weather.
Grid planners will need to evaluate the benefits of new transmission lines, such as lower electricity bills and reduce the risk of outages, and develop ways to split the cost of those lines between customers and businesses.
“We have to plan for the long term for our power grid,” said Democratic Energy Committee Chairman Willie Phillips. “Our nation’s aging power grid is being tested in ways we have never seen before. If we don’t take big action now, we will face increased demand, extreme weather, and new technologies to keep the lights on.” I can't keep the lights on.”
The committee approved the rule on a 2-1 vote, with two Democratic commissioners voting in favor and the lone Republican, Mark Christie, voting against it. Christie said the rule would allow states that want to expand renewable energy to unfairly shift the cost of needed grid upgrades to neighboring states.
“This rule completely fails to protect consumers,” Christie said. He said this was “aimed at facilitating a massive transfer of wealth from consumers to commercial special interests, particularly wind and solar power developers.”
The rule could take years to take effect, and the commission could face legal challenges from states concerned about increased costs.
Nationally, energy companies have proposed more than 11,000 wind, solar and battery projects, many of which are stalled because there isn't enough grid capacity to accommodate them. Additionally, individual developers currently have to pay for grid upgrades to accommodate their projects in a gradual and time-consuming process.
Some critics say this is like asking trucking companies to pay for additional lanes on the highways that all drivers ultimately use. A better approach, they say, is to pre-plan widespread upgrades, with costs shared among a wide range of energy providers and users.
But the question of who will pay for these grid expansions has sparked intense debate.
Officials in states less enthusiastic about wind and solar power, such as Kentucky and West Virginia, are pushing for billions of dollars to help states like New Jersey and Illinois realize their renewable energy ambitions. It said it could be forced to pay for new power lines.
To allay these concerns, the commission established guidelines for how to share the costs of new transmission projects. Before a transmission line is planned, utilities and grid operators must work with states to develop a formula that allocates costs to customers based on the potential benefits of the new transmission line.
There is some precedent for this. The electrical grid that serves 15 Midwest states, known as MISO, recently approved $10.3 billion in new transmission lines, an ambitious turnaround that will leave many of the states in need of more transmission. One reason for this is that it has set a possible energy goal. MISO estimated the line would deliver up to $69 billion in total benefits, including lower fuel costs and fewer power outages. Grid operators were then able to split costs among states without renewable energy policies, but would share the rewards.
“This is a very difficult thing, and not everyone got what they wanted, but we all agreed to sit in a room and figure this out,” said former Illinois regulator said Carrie Zalewski, now with the American Clean Power Association. This is an industry association for renewable energy.
Christie said the final rule doesn't give states enough power to object to how costs are shared. But Alison Clements, another Democrat on the committee, said giving states a veto power is a “prescription for inaction.”
The rule also requires power companies and grid operators to install advanced conductors, which can carry twice as much current as traditional transmission lines, to improve grid efficiency and provide long-term benefits at an initial cost. It also requires consideration of new technologies that can bring benefits.
Environmental groups and renewable energy companies praised the new rules.
“Today is a monumental day in the fight against climate change,” said Sen. Chuck Schumer of New York, the Democratic majority leader who had urged the committee to pass mandatory grid planning rules. .
Schumer and other Democrats have warned over the past year that efforts to combat climate change could fail if the nation's power grid is not overhauled. Power plants that burn coal and gas are a major source of pollution that dangerously heats the planet. The Inflation Control Act of 2022 pumped hundreds of billions of dollars into cleaner energy alternatives like wind and solar power, but a recent analysis shows that if the U.S. can't build a new power grid more quickly, The pace at which it was found that half of the legislation's climate benefits could be lost.
It remains to be seen how effective the new rules will be, as it will depend on how grid operators implement them. Ari Pesko, director of the Power Law Initiative at Harvard Law School, said the commission's 2011 effort to incentivize transmission projects meant that many electric companies were forced to create new plans that could undermine their monopolies. The impasse was partially due to opposition to the construction of long-distance power lines. Because the nation's power grid is decentralized, federal regulators have limited ability to compel carriers to comply.
“I think this rule could be helpful in areas where there is already momentum for further grid development, such as the Northeast,” Pesko said. “But I’m not sure FERC will be able to go that far in places where major utilities are resisting sending more power.”
The new rules affect transmission planning within 12 large regions across the country, but will no longer require transmission planning to interconnect these disparate regions, which some experts say is an even bigger need. the house says. The rule also does not affect Texas' mainline power grid. Texas is isolated from federal regulations because it does not cross state lines.
The rules also do not address the logistical and political challenges associated with building new long-distance transmission lines. It can take a decade or more for developers to find projects through numerous jurisdictions, receive permits from various federal and state agencies, and resolve lawsuits regarding harm to impaired landscapes and ecosystems.
The Biden administration recently completed a program aimed at cutting federal permitting periods in half for certain large power lines. But Congressional action may be needed to accelerate things further. Congress is struggling to reach agreement on a new electricity transmission policy.
But in a separate rule Monday, the Federal Energy Commission outlined certain situations in which states' objections to some new transmission lines may be overridden.
At issue are 10 “National Interest Transmission Corridors” that the Department of Energy has tentatively identified across the country, or locations where new transmission would be particularly beneficial. If state regulators block or delay projects in these corridors, a federal commission could step in and approve them.
But some experts question how often this happens, since the commission has historically preferred to work with states.
