The House Energy & Commerce Committee’s Subcommittee on Energy on May 13 held a hearing, “Wires, Rates, And States: Permitting Transmission For Reliable And Affordable Power.”
Randy Howard, General Manager of the Northern California Power Agency (NCPA), testified on behalf of NCPA and the Transmission Access Policy Study Group (TAPS), along with:
• Tony Clark, Executive Director, National Association of Regulatory Utility Commissioners (NARUC)
• Mark Christie, former Chairman, Federal Energy Regulatory Commission (FERC) and Director, Center on Energy and Law, William & Mary Law School
• Clay Rikard, Senior Vice President, System Planning, Southern Company
• Rob Gramlich, President, Grid Strategies
• Michael Skelly, CEO and Co-founder, GridUnited
Lawmakers and witnesses broadly agreed that expanded electric transmission will be necessary to meet rising electricity demand and maintain reliability, but divisions remain over how to balance federal authority, state roles, and cost allocation.
Republican members raised concerns about proposals to require mandatory minimum interregional transfer capability between planning regions, to broaden the Federal Energy Regulatory Commission (FERC) federal backstop siting authority, which could give FERC greater authority to site interstate transmission lines over the objection of states, and to give FERC greater authority or flexibility for transmission cost allocation. They argued that such changes could override state and local decision-making and increase costs for consumers.
Democratic members countered that Republicans were supporting the status quo and that existing policies are insufficient to meet growing demand and address rising electricity costs, emphasizing the need for reforms to accelerate transmission development.
The Role of States and Local Authorities in Integrated resource and Transmission Planning
Several witnesses emphasized the role of state and local authorities in integrated resource planning and transmission planning.
Howard explained NCPA’s 16 utilities meet directly with their customers, determine where growth is expected, and NCPA combines those integrated resource plans into a larger plan that they bring to CAISO, he noted that the planning process is best done from the bottom up at the local level, and explained that planners are not just looking at new transmission lines, but at upgrading existing lines or bringing on new generation.
Clark argued that states are uniquely situated to do transmission siting and work with impacted landowners, adding that local siting issues are not the highest or best use of a federal agency’s resources. Federal preemption of state authority, he said, could raise electric rates and negatively impact landowners.
Interregional Transmission
Interregional transmission emerged as a key point of discussion.
Gramlich pointed to the potential consumer benefits of expanding interregional transfer capability,including reduced congestion and improved system efficiency. Others, including Rikard, raised concerns that federal mandates could override cost-benefit evaluations conducted through regional and utility planning processes and lead to uneconomic outcomes for customers.
Members and witnesses also discussed the National Interest Electric Transmission Corridor designation process, though noted challenges associated with permitting timelines and implementation.
Permitting Reform
Committee members and witnesses discussed the need for environmental permitting reform, especially reforms to the National Environmental Policy Act (NEPA), as key to building additional transmission and generation infrastructure necessary.
Howard highlighted environmental permitting reform, including NEPA reforms, as critical to building new transmission, but also noted that even after the permitting process is completed, supply chain constraints cause further delays and drive-up costs.
Rikard echoed calls for providing utilities with certainty in the permitting process, both in terms of cost and time, and encouraged reforms to NEPA, the Clean Water Act, and related judicial review reforms.
House and Senate Democrats continue to prioritize transmission policy changes, including to planning, permitting, and cost allocation in ongoing discussion around a bipartisan permitting reform deal.
Data Centers
The hearing also highlighted the impact of rising electricity demand, including from data centers and other large loads, on transmission planning and affordability.
In response to a question about serving data centers from Representative Doris Matsui (D-CA), Howard highlighted Silicon Valley Power, which serves a significant number of data centers and is planning for additional growth.
Howard said software can be used to make the load more flexible so they can work with today’s resources, but they also need to build out additional infrastructure.
