H.R. 9541: Promoting Opportunities to Widen Electrical Resilience Act of 2024

This bill, known as the Promoting Opportunities to Widen Electrical Resilience Act of 2024 (or the POWER Act), aims to amend the existing Robert T. Stafford Disaster Relief and Emergency Assistance Act. The primary goal of the amendments is to provide better support and funding for electrical utilities in relation to disaster preparedness and response.

Key Provisions

• Enhanced Hazard Mitigation: The bill allows electric utilities to engage in cost-effective hazard mitigation activities. This means that utilities will have the ability to undertake projects that reduce the risk and impact of disasters, such as storms or other events that can disrupt electrical service.
• Joint Activities: Electric utilities are permitted to conduct these hazard mitigation activities either in combination with or separately from the emergency restoration efforts. Essentially, if there is a power outage, they can also work on improving their infrastructure at the same time.
• Eligibility for Funding: If an electric utility facility receives federal assistance for emergency restoration of power, this does not disqualify the facility from also receiving hazard mitigation assistance. This aspect ensures that electric utilities can access multiple forms of federal support to enhance their resilience.
• Application of New Provisions: The changes to the Stafford Act will only apply to funding that is appropriated after the bill is enacted. This means the new rules will not retroactively affect previous funding decisions.

Overall Aim

The bill seeks to improve the electrical infrastructure’s preparedness and resilience against natural disasters, aiming to ensure that essential services can be maintained or quickly restored even in adverse conditions. By facilitating better coordination between restoration efforts and proactive hazard mitigation, the bill hopes to minimize the impact of disasters on the electrical grid and, subsequently, on the communities that depend on it.

Relevant Companies

• DUK - Duke Energy: This utility company may be impacted as the legislation provides opportunities for enhanced federal funding for hazard mitigation activities, which could support Duke Energy’s infrastructure upgrades and disaster preparedness.
• NEE - NextEra Energy: As a major player in the energy sector, NextEra Energy could benefit from increased funding to improve electrical resilience through hazard mitigation projects.
• EXC - Exelon Corporation: Exelon, being an electric utility, may need to engage in hazard mitigation activities that this bill supports to ensure continuous service during disasters.