S. 3034: Reliable Power Act

The Reliable Power Act aims to amend the Federal Power Act to ensure that the Federal Energy Regulatory Commission (FERC) regularly reviews and comments on regulations affecting the reliable operation of the bulk-power system in the United States. The key components of the bill are as follows:

Annual Long-Term Assessment

The bill requires that the FERC, in consultation with the Electric Reliability Organization (ERO), performs an annual long-term assessment of the bulk-power system. This assessment will focus on:

• Ability to Supply Energy: Analyzing if the bulk-power system can supply sufficient electric energy to maintain reliability, considering the mix of generation resources, transmission development, and demand trends.
• Risk Analysis: Evaluating the risk of potential future electric energy supply shortfalls under normal and extreme weather conditions, including the likelihood of such shortfalls in various regions.
• Resource Determination: Deciding whether additional generation resources are necessary to ensure adequate electric energy supply during the assessment period.

Notification of Generation Inadequacy

If the ERO finds that the bulk-power system is at risk of insufficient generation resources, it must publicly notify the FERC that the system is in a state of generation inadequacy. This is intended to prompt necessary actions to maintain reliability.

Data Collection

The ERO is authorized to collect information and data from users, owners, and operators of the bulk-power system to facilitate the long-term assessment.

Commission Review of Covered Agency Actions

The act introduces a process for reviewing regulations by federal agencies that could impact generation resources in the bulk-power system. Key points include:

• Definitions: Covered agency actions are regulations that directly affect generation resources and are either under development or consideration.
• Notification Requirement: If the ERO indicates generation inadequacy, the FERC must notify relevant federal agencies, including the Department of Energy and the Environmental Protection Agency.
• Submission of Actions for Review: Federal agencies must submit any covered agency actions to the FERC for review before finalizing them.
• Commission Comments: The FERC will provide comments and recommendations on these actions to avoid negative impacts on the bulk-power system’s reliability.
• Agency Responses: Agencies cannot finalize actions without addressing the FERC's comments and ensuring that actions do not significantly harm energy reliability.
• Public Availability: Agencies must include comments and responses related to covered agency actions in their public documentation.

Implementation Goals

The overall purpose of these amendments is to improve the reliability of the electric grid by ensuring that new regulations do not undermine the bulk-power system's ability to function effectively, especially amid changing energy demands and potential supply risks.

Relevant Companies

• NEE - NextEra Energy, involved in generation and transmission, may be affected by changes to regulations affecting their operations.
• DUK - Duke Energy, a major utility company, could face regulatory impacts that affect their reliable power supply commitments.
• AEP - American Electric Power, which manages a large grid system, may need to adapt to new regulatory requirements from the bill.