H.R. 9843: Enhancing Electric Grid Resilience Act

This bill would change federal electricity transmission rules so that the costs of certain large power lines could be shared among the customers who are expected to benefit from them.

What the bill covers

It applies to transmission facilities of national significance, which the bill defines as:

• New interstate electric transmission lines, or offshore transmission lines, with a capacity of at least 1,000 megawatts; and
• Upgrades or expansions to existing interstate or offshore transmission lines that increase capacity by at least 500 megawatts.

In both cases, the project would have to be completed on or after the bill becomes law.

Cost-sharing rules

The bill would allow the owner, operator, or developer of one of these qualifying transmission projects to file a tariff with the Federal Energy Regulatory Commission (FERC) to set how the project’s costs are allocated.

FERC would be required to make sure the costs are assigned to customers in one or more affected transmission planning regions in a way that is at least roughly matched to the benefits those customers are expected to receive.

The bill says those benefits can include:

• Improved reliability
• Lower costs or economic benefits
• Public policy benefits
• Better resilience
• Other reasonably expected benefits

What it would not change

The bill would not take away FERC’s existing authority over other transmission projects. It specifically says the new rule does not affect how FERC may approve cost allocation for transmission facilities that do not meet the bill’s definition of national significance.

Relevant Companies

None found