H.R. 7066: Stopping Hikes In Electricity from Large Load Demands Act

The bill known as the "Stopping Hikes In Electricity from Large Load Demands Act," or "SHIELD Act," seeks to amend an existing law called the Public Utility Regulatory Policies Act of 1978 (PURPA) to introduce specific standards regarding large load facilities. Here’s an overview of the key provisions of the bill:

Classification of Large Load Facilities

The bill establishes a classification for large load facilities, which are defined as those with a peak electric demand that exceeds 75 megawatts. These facilities are recognized as a separate category of electric consumers under the law.

Cost Recovery for Utilities

Electric utilities will be allowed to recover all costs associated with upgrades to their systems that are made to accommodate the demand from these large load facilities. This includes enhancements to generation, transmission, or distribution facilities. Importantly, the legislation stipulates that utilities can recover these costs even if a large load facility reduces its operations or its electric energy use is lower than initially forecasted.

Grid Reliability and Request Prioritization

The bill mandates that electric utilities must prioritize electric service requests from large load facilities if the request includes commitments to:

• Implement energy efficiency or conservation measures.
• Use onsite energy storage systems.
• Employ demand response or load flexibility technologies.
• Utilize zero-emission electric energy generated onsite or procured through power purchase agreements.

State Regulatory Authority Requirements

State regulatory authorities and nonregulated utilities must initiate a review of the new standards concerning large load facilities and complete this consideration within two years after the bill’s enactment. Furthermore, they are required to report their findings to congressional committees following their determinations.

Exemptions and Prior Actions

Utilities in states that have already implemented similar standards or initiated discussions regarding them prior to this bill's enactment may not have to comply with the new requirements. This means any previously conducted proceedings related to large load facilities will be taken into account.

Definitions

Several terms are defined clearly within the bill, such as:

• Large load facility: A facility with peak demand over 75 megawatts, excluding those whose increased demand is related to measures for electrification or greenhouse gas reductions.
• Zero-emission electric energy: Electric energy generated without greenhouse gas emissions, including sources such as solar, wind, hydroelectric, and nuclear energy.

Implementation Timeline

The bill includes specific timelines, stating that state authorities must begin the review within a year of the bill becoming law and complete it within two years.

Relevant Companies

• NEE - NextEra Energy: As a major electric utility operating in renewable energy, the amendments could affect how they allocate resources for large load facilities.
• AEP - American Electric Power: This company might see changes in cost recovery processes as a result of the changes to PURPA regarding large load facilities.
• DUK - Duke Energy: Their operations might be influenced by the bill, especially in terms of meeting demands from large load facilities and cost recovery for upgrades.