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S 1566119th CongressIn Committee

Preventing Power Outages Act

Introduced: May 1, 2025
Standard Summary
Comprehensive overview in 1-2 paragraphs

The Preventing Power Outages Act would extend and reshape a Department of Energy grant program under the Infrastructure Investment and Jobs Act (IIJA) dedicated to preventing outages and strengthening the electric grid. The bill tightens how grid reliability is measured by requiring use of standard reliability indices (CAIDI, SAIDI, SAIFI) based on IEEE 1366, and by counting outages longer than 5 minutes (including Major Event Days) in those calculations. It strengthens grant‑making by giving extra weight to applicants—whether utilities, states, or Indian Tribes—that have poorer reliability records over the previous five years. It also clarifies that grants should not be conditioned on pursuing multiple activity categories, and it prevents preference solely for applicants that address more than one category. Finally, the bill extends the program window from 2022–2026 to 2027–2031, with funds remaining available until expended.

Key Points

  • 1Redefines reliability metrics: CAIDI, SAIDI, and SAIFI will follow the IEEE 1366 standard, including outages longer than 5 minutes and Major Event Days in calculations.
  • 2Grants scoring with reliability in mind: When awarding grants, the Secretary must weigh applications based on historical SAIDI, SAIFI, and CAIDI scores from the prior five years, favoring entities with lower reliability (higher outage metrics).
  • 3State/Tribe consideration: The same five-year reliability scores will influence grant decisions for States and Indian Tribes, giving extra weight to those with poorer reliability.
  • 4Eligibility and grant rules clarified: Grants cannot be conditioned on addressing more than one type/category of activities, and they cannot give priority solely because an application covers multiple categories.
  • 5Extended funding window: The program’s duration is extended to 2027–2031 and funds remain available until expended.

Impact Areas

Primary group/area affected: Electric utilities, grid operators, States, and Indian Tribes that participate in the grant program; ratepayers in regions with historically higher outage durations or frequencies.Secondary group/area affected: Federal program administrators (e.g., the Secretary of Energy) and state/tribal agencies implementing resilience projects; manufacturers and vendors supplying grid hardening technologies.Additional impacts: The change in measurement may require utilities to adjust reporting and data collection to align with the IEEE 1366 standard and to compile five-year reliability histories; the focus on weaker reliability regions could steer more federal funds toward hardening and resilience projects in those areas, potentially influencing project selection, timelines, and budgeting.
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