H.R. 1047: Guaranteeing Reliability through the Interconnection of Dispatchable Power Act

The bill titled "Guaranteeing Reliability through the Interconnection of Dispatchable Power Act" aims to improve the efficiency of the process that allows new energy projects to connect to the electric grid. Here are the major points of the bill:

Objectives

• The primary goal is to facilitate quicker and more reliable connections of new dispatchable power projects to the electric grid.
• It aims to enhance grid reliability and resource adequacy, ensuring the electric grid can consistently provide enough electricity to meet demand.

Key Definitions

• Bulk-power system: Refers to the interconnected electrical infrastructure that delivers electricity over large areas.
• Dispatchable power: Energy generation resources that can provide predictable electricity supply to the grid when needed.
• Grid reliability: The capability of the electric grid to maintain a steady and secure flow of electricity.
• Grid resilience: The grid's ability to adapt to and recover from disruptions, such as natural disasters or cyber-attacks.
• Resource adequacy: The capacity of the electric system to meet consumer demand at all times, accounting for possible outages.

Rulemaking Process

Within 90 days of the bill's enactment, the Federal Energy Regulatory Commission (FERC) must start a rulemaking process aimed at:

• Identifying and addressing inefficiencies in the current interconnection request procedures.
• Amending the existing procedures and agreements to allow energy providers to prioritize new projects that enhance reliability and adequacy.

Proposal Requirements

• Transmission providers will be allowed to propose adjustments to the interconnection queue to prioritize dispatchable power projects.
• These proposals must demonstrate the need for prioritization and explain how it would improve grid reliability or resilience.
• Public comments and stakeholder engagement will be required before submitting proposals.
• Transmission providers must report regularly to ensure transparency on the state of grid reliability and resilience.

Approval and Deadlines

Once a proposal is submitted, FERC is required to review and either approve or deny it within 60 days. Additionally, final regulations stemming from this bill must be completed within 180 days of its enactment. The FERC will also conduct periodic reviews, at least every five years, to ensure the regulations remain effective.

Relevant Companies

• NEE - NextEra Energy, a major renewable energy provider, may see the effects of accelerated project approvals for wind and solar projects.
• DUK - Duke Energy, involved in electric transmission and distribution, could experience changes in project prioritization affecting their new energy integration.
• ED - Consolidated Edison, which provides electricity to the New York area, may have to adapt to new requirements around dispatchable power.