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Recommendations

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Figure 3-6. Select Electricity Jurisdictions 59 NERC Regional Entities and Balancing Authorities Dynamically Controlled Generation * Bubble size is determined by acronym width Federally Regulated Power Lines 115-161kv 230-500kv Alberta Electric System Operator Ontario Independent Electricity System Operator New York ISO Regional Transmission Organizations (RTOs)/Independent System Operators (ISOs) California ISO Southwest Power Pool Midcontinent ISO New England ISO PJM Interconnection Electric Reliability Council of Texas Transmission lines, which are regulated at the Federal level, cross state boundaries and connect the regional organizations that manage and operate the bulk power electricity grid. In contrast, states regulate the distribution of electricity to end-use customers for entities under their jurisdiction, as well as the siting of transmission on non-Federal lands. Further, in most states, local appointed or elected governing boards handle the regulation of distribution for their publicly or cooperatively owned electric utility. This diversity of institutions and differences in jurisdictional boundaries create challenges in grid governance (given that changing the grid in one location can alter electricity dynamics over a large area). QER Report: Energy Transmission, Storage, and Distribution Infrastructure | April 2015 3-23
Chapter III: Modernizing the Electric Grid Policy Framework for the Grid of the Future The transition from today’s existing grid to the grid of the future will be challenging. The electric grid is highly complex, has significant regional variability, and should be managed to accommodate a range of possible futures. The vision of the future electric grid described earlier in this chapter was developed after a year-long QER process of analyses and stakeholder engagement. The recommendations that follow are guided by five key policy principles that emerged from this work. • The future grid should encourage and enable energy efficiency and demand response to cost effectively displace new and existing electric supply infrastructure, whether centralized or distributed. The policies, financial tools, and pricing signals that enable customers to save money and energy while enhancing economic growth should be preserved and strengthened as business models evolve. • The future grid should provide balanced support for both decentralized power sources and the central grid. As the costs of decentralized power sources and storage continue to fall, there will be increased opportunities for end users to partially or completely supply their own electricity. At the same time, the vast majority of American homes and businesses will continue to rely on the power grid for some or all of their electricity. It is essential, then, that investment in both centralized and decentralized systems occur in a balanced manner, preserving high-quality service for all Americans while simultaneously enabling new options and services that may reduce energy costs or climate impacts. Similarly, access to renewable energy, energy efficiency improvements, and new energy-related services should not be limited to isolated customer groups, but rather become an integral part of the universal service that both decentralized and centralized grid customers enjoy. • In the future grid, new business and regulatory models must respect the great regional diversity in power systems across the United States, as well as the critical roles played by state, local, tribal, and regional authorities, including state public service commissions and regional grid operators. The drivers of change in the power system cut across the traditional boundaries of state and Federal regulation and thereby introduce new challenges in designing and overseeing new business and regulatory models. An unprecedented amount of consultation and collaboration will be necessary to ensure that national objectives are met alongside complementary state policies in power systems that are inherently regional in their scope and technology. • Planning for the future grid must recognize the importance of the transmission and distribution systems in linking central station generation—which will remain an essential part of the U.S. energy supply for many years to come—to electricity consumers. Transmission and generation both benefit from joint, coordinated planning. Transmission can allow distant generation—where there may be excess capacity—to supplement local supply and avoid the need to build new plants. New generation sometimes requires new transmission, especially remotely sited renewables or new nuclear plants. Utility and Regional Transmission Organization planning processes and tools should continue to evolve to evaluate transmission, generation (both central and distributed), and demand-side resources holistically. • Finally, the careful combination of markets, pricing, and regulation will undoubtedly be necessary in all business and regulatory models of the future grid. While the precise nature and scope of the market structures in the future grid may vary considerably, there is little doubt that markets in one form or another will be an important means of providing access to new technologies and services. Even in settings where prices are regulated, novel approaches can allow beneficial new pricing and service structures. Moreover, both new and traditional financing options provided by capital markets will be an important element in the future industry landscape. 3-24 QER Report: Energy Transmission, Storage, and Distribution Infrastructure | April 2015
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QUADRENNIAL ENERGY REVIEW: ENERGY T
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Preface In June 2013, through the P
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Presidential Memorandum The White H
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(xx) the Small Business Administrat
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TABLE OF CONTENTS Preface..........
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LIST OF FIGURES Figure SPM-1. Age b
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Figure 7-7. Conditions Affecting Li
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Summary TRANSFORMING U.S. ENERGY IN
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same systems (e.g., ports and railw
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Aging Infrastructure and Changing R
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Actions taken in the first term of
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Figure SPM-3. Billion-Dollar Disast
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Key Findings Mitigating energy disr
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Recommendations in Brief To continu
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The potential range of new transmis
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Improve grid communication through
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Undertake a study of the relationsh
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• Doubling the size of the Inland
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Key Findings The United States has
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Promote Caribbean energy TS&D infra
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Recommendations in Brief Improve qu
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• Developing curricula and certif
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(2) the Fish and Wildlife Service I
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Table SPM-2. Examples of Federal Me
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Chapter I INTRODUCTION This chapter
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The requirements that this TS&D inf
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Increases in U.S. Oil and Natural G
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Increased Deployment of Renewable E
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Figure 1-3. Percent Change in Retai
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Climate Science The key conclusions
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Figure 1-7. Change in Annual Averag
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Other actions to deploy low-carbon
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Figure 1-8. Historic and Projected
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Government can build and incentiviz
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Notes: 1. Analyses were conducted w
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Organization of the Remainder of th
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Endnotes 1. Edison Electric Institu
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39. Energy Information Administrati
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Chapter II INCREASING THE RESILIENC
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The Importance of Resilient, Reliab
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Figure 2-1. Illustration of Tornado
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Continued increases in extreme weat
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Weather-Related and Other Reliabili
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Drought is also problematic. In 201
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Electricity TS&D Vulnerabilities Va
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Distribution hardening projects are
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Although pipelines above and below
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Safety and Methane Emissions from G
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Indianapolis’ in 2013 (see Figure
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Natural Gas Infrastructure Dependen
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Page 172 and 173: Changing Global and Domestic Oil Ma
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Page 180 and 181: The United States and Canada share
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DOT reports that connecting roads t
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Uncertainty in U.S. Coal Exports U.
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capacities of 1.5 MW to 2.5 MW, 103
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QER Recommendations PORTS, HARBORS
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QER Recommendations (continued) MOD
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Endnotes 1. Department of Agricultu
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39. Quadrennial Energy Review Analy
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75. Army Corps of Engineers, Planni
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111. Department of Energy. “Wind
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Chapter VI INTEGRATING NORTH AMERIC
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Benefits of North American Energy S
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TS&D infrastructure already plays a
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for electric transmission facilitie
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35, 36 Figure 6-5. U.S. Natural Gas
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pumped hydropower storage could pro
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QER Recommendations NORTH AMERICAN
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Administration Activities and Plans
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Risk and Resilience in the Caribbea
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QER Recommendations CARIBBEAN ENERG
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Endnotes 1. Molburg, J.C., J.A. Kav
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Chapter VI: Integrating North Ameri
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Chapter VII: Addressing Environment
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Chapter VIII: Enhancing Employment
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Chapter IX: Siting and Permitting o
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9-26 QER Report: Energy Transmi
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Chapter X: Analytical and Stakehold
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LIST OF ACRONYMS AND UNITS APE - Ar
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