H.R. 6633: High-Capacity Grid Act

The bill, known as the High-Capacity Grid Act, aims to enhance transmission infrastructure in the United States by establishing standards for transmission conductors used in electricity transmission projects. Here is a breakdown of what the bill proposes:

Best-Available Transmission Conductor Standard

The bill introduces a new standard for the transmission conductors used in certain electricity transmission projects, defined as the "best-available transmission conductor." This term refers to a conductor that:

• Offers the greatest feasible energy-carrying capacity at a given voltage level.
• Provides the highest feasible electrical efficiency at that voltage level.
• Reduces thermal sag at the maximum rated transmission-carrying capacity of the facility.

Covered Projects

Covered projects include:

• The construction of new transmission facilities under the jurisdiction of the Federal Energy Regulatory Commission (FERC).
• Any modifications, upgrades, replacements, or reconductoring of existing transmission lines under FERC jurisdiction.

Cost Recovery Presumptions

The bill establishes presumptions related to the recovery of costs associated with transmission conductors:

• There will be a presumption that using a best-available transmission conductor is prudent, meaning that costs associated with it can be deemed just and reasonable during cost recovery proceedings.
• Conversely, there will be a presumption against the recovery of costs for conductors that do not meet the best-available standard, implying that such costs may be considered not prudent or unreasonable.

Applicability

The requirements of this bill will apply only to public utilities in relation to covered projects that fall under the jurisdiction of FERC.

Implementation Timeline

FERC is required to create regulations to implement these standards within 180 days of the bill's enactment. This involves:

• Setting a methodology to determine what constitutes a best-available transmission conductor.
• Ensuring the methodology aligns with the established criteria.
• Allowing for periodic reviews and updates to the methodology to keep pace with technological advancements and improved materials.

Relevant Companies

• NEE (NextEra Energy, Inc.) - As one of the largest utility companies, they may be affected by the requirement to use best-available transmission conductors, influencing their project costs and infrastructure planning.
• DUK (Duke Energy Corporation) - As a major player in the electricity supply sector, this company could face changes in project expenses and regulations concerning their transmission line updates.
• ED (Consolidated Edison, Inc.) - Being a utility provider, they may experience significant impacts on their cost recoveries associated with transmission line enhancements following the standards outlined in this bill.