Governors seek more say over grid planning process

This story is republished from Maryland Matters. Read the original article.

As states scramble to find reliable sources of electric power amid ever-growing demand for energy, Gov. Wes Moore and three fellow Democratic governors are seeking more say in the regional electric grid operator’s future planning.

Moore, along with New Jersey Gov. Phil Murphy, Pennsylvania Gov. Josh Shapiro and Illinois Gov. JB Pritzker, have written to PJM Interconnection, the grid operator for 13 states and the District of Columbia, seeking a “robust” planning process, that includes the states, for using more carbon-free electricity. The governors wrote that “close coordination” is necessary between PJM and the states to achieve “a collective vision.”

“Transmission planning is essential to delivering economic growth, electric grid reliability, and cost savings for consumers,” the governors said in their letter earlier this month. “Collectively, the undersigned states understand its importance to developing large-scale low-and-zero emission energy resources that will support the increasing demand for electricity as new industries emerge and grow our energy workforce.”

The letter comes in the wake of two significant recent actions by the Federal Energy Regulatory Commission (FERC), which regulates the interstate transmission of electricity, natural gas and oil.

Last month, FERC issued an order that requires states and utilities to plan for grid upgrades and to use more renewable energy—and just as important, to figure out who should pay for these changes.

Environmental groups and clean energy advocates see the FERC order as a significant development toward making energy supplies more reliable, at a time when the profusion of data centers, electric vehicles and building electrification projects are placing more demands than ever on the grid.

But state Republican attorneys general have threatened to sue FERC over the new rule because of its dependence on clean energy sources for electric power. And PJM is among several entities that have asked for a rehearing on the FERC rule. The grid operator has questioned whether the new FERC order could interfere with certain aspects of its planning process, according to RTO Insider, a newsletter covering utility issues.

In their letter to PJM, Moore and his fellow governors note that the FERC order “envisions a clear collaboration between the grid operator and state policymakers to identify long-range planning scenarios that incorporate state policy priorities.”

Earlier this week, more than two dozen environmental groups, clean energy advocates and policy experts wrote a separate letter to PJM, expressing disappointment that the grid operator has sought a rehearing on the FERC order. The request, they wrote, could mean PJM is missing “a key opportunity to ensure long-term planning in PJM is proactive and comprehensive in a way that benefits ratepayers, businesses, and the broader economy.”

The signatories to the letter included Adam Dubitsky, state director for the Maryland Land & Liberty Coalition, a conservative group that advocates for renewable energy installations on rural land; Rebecca Rehr, director of climate policy and justice for the Maryland League of Conservation Voters; Laurie McGilvray, co-chair of the Maryland Legislative Coalition – Climate Justice Wing; Lee McNair, co-leader of the Cedar Lane Unitarian Universalist Environmental Justice Ministry in Bethesda; and Sam Salustro, vice president of strategic communications at the Oceantic Network, a Baltimore-based organization that promotes offshore wind energy.

In a related development, FERC last week denied a request by Talen Energy Corp. to increase electricity rates for Maryland consumers in order to keep two coal- and oil-burning power plants in Anne Arundel County open for the next several years. Talen is seeking to shutter the Brandon Shores and H.A. Wagner plants, arguing that operating them is no longer financially viable.

But PJM officials have sought to keep the plants open longer in order to guarantee transmission reliability. The Maryland Office of People’s Counsel had argued before FERC that the company was looking to pass $774 million in costs on to ratepayers of Baltimore Gas and Electric Co., Pepco and the Southern Maryland Electric Cooperative.

“FERC’s decision vindicates our concerns that Talen failed to show that its proposal is fair to customers and that a thorough analysis is needed before imposing these extraordinary costs on customers,” said David S. Lapp, who heads the Office of People’s Counsel, which represents utility customers’ interests in official proceedings.

But the FERC decision served as further proof that the question of who should pay for grid reliability and cleaner, more efficient energy sources remains a vexing issue for policymakers and regulators—and will remain so for the foreseeable future.