H.R. 6176: Electricity Transmission Scorecard Act

The Electricity Transmission Scorecard Act aims to enhance the transparency, accountability, and performance of entities involved in electricity transmission across the United States. Here are the key features of the bill:

Purpose

The bill seeks to:

• Establish standardized performance reporting for electricity transmission entities.
• Allow for better comparison among different transmission providers.
• Focus on improving reliability, affordability, and efficiency of electricity transmission.

Key Components

Standardized Reporting

Covered transmission owners, which include entities that own and operate electricity transmission facilities, will be required to create and submit a Transmission Investment, Accountability, and Performance Scorecard (TIAPS report). This scorecard will:

• Assess ratepayer affordability of transmission services.
• Analyze financing costs and investment prudency.
• Evaluate the effectiveness of investments relative to their costs.
• Include metrics related to system reliability, physical performance, interconnection fairness, and non-operational cost recovery.

Performance Metrics

The performance metrics will focus on aspects such as:

• Affordability of services per unit of energy transmitted.
• Operational performance related to outages and system disturbances.
• How efficiently transmission facilities are used to deliver electricity.
• Compliance with equity measures for interconnections.

Performance Scorecard Requirements

Each regional grid operator (like Independent System Operators and Regional Transmission Organizations) must also develop a Regional Investment, Accountability, and Performance Scorecard (RIAPS). This scorecard will summarize the metrics reported by covered owners within their jurisdiction.

Data Disclosure and Accessibility

All reporting entities will need to publish their scorecards along with underlying data in a publicly accessible format. A public online portal will be established to house all this information, allowing stakeholders, including investors and ratepayers, to access and evaluate data on transmission performance.

Verification and Oversight

To ensure data accuracy and consistency, an independent verification process will be put in place. The bill outlines specifics on how audits will be conducted and how evaluators will be qualified, focusing on maintaining independence from the entities being audited. Additionally, the Secretary of Energy is required to oversee the process and produce annual reports evaluating the performance of transmission entities.

Implementation Timeline

The bill includes a timeline for submitting the first scorecards within six months of the Commission issuing final rules. The Commission is given a year to establish these rules post-enactment of the Act.

Stakeholder Engagement

The bill mandates the formation of a stakeholder advisory group to provide guidance on the scorecard metrics and data quality. Public technical conferences will occur every three years to discuss stakeholder feedback and improvements.

Enforcement

Violations related to the scorecard requirements will be treated as violations under existing federal law, enabling regulatory action if necessary.

Relevant Companies

• AEP: American Electric Power operates transmission facilities that would be required to report under the proposed legislation. Changes in performance reporting might directly affect their operations and regulatory compliance.
• EXC: Exelon Corporation also owns and operates significant transmission facilities, and they would need to comply with the new reporting standards, potentially impacting their financial disclosures and operational strategies.
• DUK: Duke Energy manages utility operations including electricity transmission. Compliance with the scorecard requirements could influence their investment decisions and cost structures due to increased scrutiny on their performance metrics.
• NRG: NRG Energy is involved in electricity generation and transmission and would be affected by the need to provide detailed performance data which could impact business practices.