Reliable Power Act
The Reliable Power Act would require the Federal Energy Regulatory Commission (FERC) to oversee and participate in regulatory actions that could affect the reliability of the bulk-power system. It does this by: - mandating an annual, long-term reliability assessment by the Electric Reliability Organization (ERO) to evaluate whether enough generation resources exist to maintain adequate reliability, considering resource mix, transmission development, and demand trends; and - creating a process for FERC to review and comment on federal agency actions (regulations) that could impact generation resources, with agency heads required to respond and ensure the action will not significantly undermine reliability. If the ERO finds a generation inadequacy, it must publicly notify the Commission. Then FERC would inform relevant federal agencies (like the Department of Energy and the Environmental Protection Agency) and require their actions to be reviewed for potential modifications to avoid negative impacts on reliability. Comments and agency responses would be made public, and final agency actions could not be finalized until FERC determines there will be no significant negative reliability impact. Overall, the bill adds a formal, ongoing check between reliability planning (ERO/FERC) and federal regulatory actions that touch generation resources, aiming to prevent rules or regulations from eroding electric system reliability.
Key Points
- 1Annual long-term reliability assessment (amending Section 215(g) of the Federal Power Act): The ERO must analyze (A) whether the bulk-power system can supply enough energy to maintain reliability, considering resource mix, transmission development, and demand trends; (B) the risk of future shortfalls under normal and extreme weather; and (C) whether additional generation resources may be needed during the assessment period.
- 2Notice of generation inadequacy: If the ERO concludes there is a risk of inadequate generation resources, it must publicly notify FERC that the bulk-power system is in a state of generation inadequacy.
- 3Commission review and comment for covered agency actions: When generation inadequacy is identified, FERC must notify DOE, EPA, and other appropriate federal agencies. Heads of those agencies must submit for FERC review any "covered agency actions" (regulations that affect generation resources in the bulk-power system and are in rulemaking or development in that period).
- 4FERC comments and potential modifications: FERC, with input from the ERO and transmission operators, would issue comments and, if needed, recommendations to modify the agency action to avoid significant negative impacts on reliability (rates, terms, or conditions for service may be affected).
- 5Agency response and finalization: The agency cannot finalize the covered action until it explains modifications (if any) and FERC confirms the action will not likely have a significant negative impact on reliability.
- 6Public disclosure: All comments and responses must be made publicly available when the agency action is published or otherwise made public.
- 7Definitions: The bill defines "covered agency action" as a federal regulation that affects generation resources in the bulk-power system and is under development for proposed or under consideration at the time of the Commission’s notification; and "federal agency" to include executive departments or other executive bodies in the President’s cabinet.