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NC CLEAN ENERGY TECHNOLOGY CENTER

About the Report

What is Grid Modernization?

Grid modernization is a broad term, lacking a universally accepted definition. In this report, the authors use the term grid modernization broadly to refer to actions making the electricity system more resilient, responsive, and interactive. Specifically, in this report grid modernization includes legislative and regulatory actions addressing: (1) smart grid and advanced metering infrastructure, (2) utility business model reform, (3) regulatory reform, (4) utility rate reform, (5) energy storage, (6) microgrids, and (7) demand response.

Purpose

The purpose of this report is to provide state lawmakers and regulators, electric utilities, the advanced energy industry, and other energy stakeholders with timely, accurate, and unbiased updates about how states are choosing to study, adopt, implement, amend, or discontinue policies associated with grid modernization. This report catalogues proposed and enacted legislative, regulatory, and rate design changes affecting grid modernization during the most recent quarter. The 50 States of Grid Modernization report series provides regular quarterly updates and annual summaries of grid modernization policy developments, keeping stakeholders informed and up to date.

Executive Summary

Q1 2018 Grid Modernization Action

In the first quarter of 2018, 37 states plus DC took a total of 259 policy and deployment actions related to grid modernization, utility business model and rate reform, energy storage, microgrids, and demand response. Table 1 provides a summary of state and utility actions on these topics. Of the 258 actions catalogued, the most common were related to policies (73), studies and investigations (44), and deployment (42).

Top 5 Grid Modernization Developments of Q1 2018

Five of the quarter’s top policy developments are highlighted below.

Arizona Regulator Proposes Energy Storage Target and Clean Peak Standard

In January 2018, Commissioner Tobin filed a proposed Energy Modernization Plan, including an energy storage target of 3,000 MW by 2030, as well as a clean peak target. The proposal is currently under consideration as part of the Arizona Corporation Commission’s proceeding examining the modernization of the state’s Renewable Energy Standard.

Hawaii Initiates Transition to Performance-Based Ratemaking

During Q1 2018, the Hawaii State House moved forward legislation initiating a transition to performance-based ratemaking in order to align utility regulatory policies with customers’ interests and the state’s public policy goals. The bill later passed the Senate and was signed into law in April 2018. The Public Utilities Commission is to establish performance incentives and penalty mechanisms for the state’s investor-owned utilities by January 1, 2020.

Texas Regulators Deny AEP Proposed Battery Storage Project and Open New Proceeding

In January 2018, Texas regulators denied AEP Texas North Company’s proposal to deploy two battery storage systems as non-wires alternatives. At issue is whether energy storage is categorized as generation or not because the state’s deregulated utilities may not own generation assets. The Commission subsequently opened a rulemaking docket to establish a framework for energy storage.

Virginia Legislature Enacts Grid Modernization Legislation

The Virginia legislature enacted omnibus energy legislation in Q1 2018, which includes major provisions related to grid modernization. The bill defines electric distribution grid transformation project and declares that these are in the public interest. These projects include advanced metering infrastructure, distribution system modernization, energy storage, microgrids, cybersecurity measures, system hardening not including undergrounding, and several other types of measures.

Public Utilities Commission of Ohio Concludes its PowerForward Proceeding

Ohio’s PowerFoward grid modernization proceeding concluded in March 2018 with its third and final segment, examining ratemaking and regulation. The exploratory proceeding, which was first announced in March 2017, was focused on learning from industry experts and engaging stakeholders. No official policy recommendations came out of the proceeding, but it will inform future grid modernization activities in the state.

Download full version (PDF): 50 States of Grid Modernization – Q1 2018 Quarterly Report

About the NC Clean Energy Technology Center
nccleantech.ncsu.edu
The N.C. Clean Energy Technology Center is a UNC System-chartered Public Service Center administered by the College of Engineering at North Carolina State University. Its mission is to advance a sustainable energy economy by educating, demonstrating and providing support for clean energy technologies, practices, and policies.

Tags: Grid modernization, Grid modernization report, NC Clean Energy Technology Center, North Carolina State University

This entry was posted on Thursday, June 7th, 2018 at 10:28 am and is filed under Energy, Infra Views, National, Policy, Smart Grid . You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.