H.R. 3143: State Planning for Reliability and Affordability Act

This bill, known as the State Planning for Reliability and Affordability Act, proposes amendments to the Public Utility Regulatory Policies Act of 1978. The main goal of the bill is to enhance the reliability of electric power generation by requiring electric utilities to consider and ensure the availability of reliable generation facilities as part of their long-term planning processes.

Key Provisions

The bill introduces several key provisions related to electric utility planning:

1. Reliable Generation Facilities

Electric utilities employing integrated resource planning are required to:

• Ensure operational measures that guarantee the availability of electric energy over a 10-year time frame.
• Either maintain reliable generation facilities that can continuously generate power for at least 30 days or procure electricity from such facilities.

A "reliable generation facility" is defined as one that:

• Can operate continuously for at least 30 days.
• Has adequate energy sources, either by having adequate fuel on-site or through contractual obligations ensuring fuel supply.
• Can generate electricity during emergencies or severe weather conditions.
• Provides essential services for the reliability of electric energy, including frequency and voltage support.

2. State Regulatory Authority Responsibilities

The bill establishes specific responsibilities for state regulatory authorities, including:

• Beginning consideration of the new reliability standard within one year of the bill's enactment.
• Completing this consideration and determination within two years of enactment.

Furthermore, if a state has already implemented a standard comparable to the new requirement, it may be exempt from these obligations.

3. Prior and Pending Proceedings

The bill also updates procedures regarding prior and pending proceedings related to the implementation of reliability standards.

Implementation Timeline

The bill outlines a timeline for states to implement its requirements, necessitating a structured approach toward ensuring that electric utilities adhere to the established reliability measures.

Compliance Measures

States must ensure compliance with these new standards to reinforce the reliability and affordability of electric service, positioning both the utilities and regulatory authorities to work proactively in maintaining energy stability.

Funding and Resources

While the bill does not specifically allocate funds or resources, its requirements may influence state budgets and resource allocation for compliance efforts.

Relevant Companies

• DUK - Duke Energy Corporation: As a major electric utility, it may need to adapt its infrastructure and planning to meet the new reliability standards.
• EXC - Exelon Corporation: This utility provider could be impacted by the new procurement rules and reliability requirements for its generation facilities.