H.R. 3616: Reliable Power Act

This bill, known as the Reliable Power Act, is aimed at improving the reliability of the electric power system in the United States. Here are the key provisions of the bill:

Purpose and Title

The bill is officially titled the Reliable Power Act and focuses on ensuring the reliable operation of the bulk-power system, which includes the generation, transmission, and distribution of electricity.

Commission Review Responsibilities

The bill proposes amendments to existing regulations under the Federal Power Act, specifically placing new responsibilities on the Electric Reliability Organization (ERO).

• The ERO is required to conduct annual long-term assessments of the bulk-power system to analyze various factors affecting its reliability.
• These assessments must evaluate:
  • The ability of the power system to meet energy demands and maintain reliability.
  • The risk of energy supply shortfalls under normal and extreme weather conditions.
  • Whether additional generation resources are necessary to ensure adequate reliability.
• If the ERO determines that there is a risk of inadequate generation resources, it must notify the Federal Energy Regulatory Commission (FERC) and the Department of Energy (DOE).

Notification and Agency Collaboration

Upon notification of a generation inadequacy:

• FERC must inform relevant federal agencies, including the DOE and the Environmental Protection Agency (EPA).
• These agencies must then submit any regulatory actions they are considering that may relate to power generation to FERC for review and comment.

Comments and Recommendations

FERC, in collaboration with the ERO and other regional entities, will provide feedback on agency actions. This feedback may include:

• Assessments of potential impacts on electric rates and the reliability of power supply.
• Recommendations for adjustments to agency actions to mitigate any negative consequences on the power system.

Agency Actions and Accountability

A federal agency cannot finalize regulatory actions without:

• Responding in writing to FERC regarding any modifications made in response to their comments.
• Ensuring that the action will not significantly harm the ability of the power system to provide reliable electricity.

Furthermore, all comments and agency responses regarding these actions must be made publicly available when the actions are published or made available for public inspection.

Definition of Covered Agency Actions

The bill defines a covered agency action as any regulation concerning electricity generation resources that are being considered or developed but are not final when the federal agency receives notification from FERC about generation inadequacy.

Conclusion

The Reliable Power Act seeks to enhance oversight and collaboration among federal agencies regarding regulations that impact the reliability of the electric power system. By establishing a process for evaluating and responding to power supply risks, the bill aims to ensure that adequate measures are in place to maintain reliable electricity availability across the country.

Relevant Companies

• DUK - Duke Energy Corporation: A major player in electric power generation and distribution, this company could be affected by new reliability regulations and oversight.
• NEE - NextEra Energy, Inc.: As one of the largest renewable energy generators, changes in regulations regarding reliability could impact their operational strategies.
• XEL - Xcel Energy Inc.: This utility company may need to adjust its operations and planning to align with new assessments and regulations.