Transmission

Conversations with Puget Sound Energy CEO Mary Kipp, Hawaii Public Utilities Commission Chair Leo Asuncion, Pacific Power President Ryan Flynn, Rocky Mountain Power President Dick Garlish, with paintings by PUF’s Paul Kjellander.

The regional power grids are changing rapidly and facing unprecedented challenges. One day in May illustrates interesting dynamics in three regions, those of the California ISO, PJM in the mid-Atlantic, and ERCOT in Texas.

“What we do have are lessons learned to share with our peers who have wildfire risk in their service territory, or who will have it in the next five to ten years, as our environment continues to change and forces us to adapt to the conditions.”

“We must have liability caps. It may seem unachievable to change state and/or federal laws, but utilities’ exposure to these liabilities must be capped. Customers are being impacted by legal costs associated with wildfires. Unless reasonable limits are placed on wildfire liabilities, access to capital will be hampered.”

Utilities now have public safety power shutoffs and design systems with sensors, so if fire meets the line, it automatically de-energizes as fast as one-tenth of a second. Expect that arsenal to grow, even with improvements in vegetation management and undergrounding of lines.

“Much infrastructure growth and research and development are going to require continued government intervention, whether in the form of funding for research or loan guarantees. The picture, in my mind, has been getting a little clearer over the last few years, but I still don’t see a clear path to either 2030 or 2040.”

“The distribution system needs communication and management systems to provide a greater understanding of what’s happening on the distribution grid as large and small customers are installing more distributed energy resources. With this, utilities can better manage peak demands and ensure reliability.”

“The most important concern is how we can address present risks, as well as tackle electrification requirements of the future.”

“Pennsylvania passed legislation allowing for alternative ratemaking, which allows utilities the option to utilize time-of-use, incentive, multi-year, decoupled, and other distribution rate designs. We haven’t had significant applications of these designs yet, but the tools are in the toolbox.”

“I think about the potential for increased reserve margins for utilities due to extreme weather, the impact of economic development decisions, as well as potential load growth from electrification of the motor vehicle fleet. With all that demand coming onto the grid in the near and long term, it gives me concerns. The grid is going to be challenged.”