The Grid Utilization Assessment Act

Model Policy

Section 1. Short Title.
This Act shall be known as the “Grid Utilization Assessment Act.”

Section 2. Definitions. As used in this Act:

1. “Commission” means the [State Public Utility Commission or equivalent regulatory authority].
2. “Electric utility” means an electric public utility subject to the jurisdiction of the Commission that owns or operates an electric transmission or distribution system.
3. “Grid utilization” means the extent to which existing electric transmission and distribution infrastructure is used to deliver electricity across locations over a specific time period.

Section 3. Utility Reporting.
(a) Within twelve (12) months after [EFFECTIVE DATE], each electric utility shall submit to the Commission an assessment of grid utilization and relevant constraints on its transmission and distribution systems, as applicable. The assessment shall include reasonably available information concerning:

1. energy delivered and potential deliverable energy over a period of not less than the previous three years;
2. peak loading, available capacity, and the location, frequency, and duration of system constraints;
3. relevant reliability and asset condition information, including operation outside normal operating conditions or design criteria; and
4. any additional information necessary for the Commission to conduct the study described in Section 4.

(b) The Commission shall specify the form and level of detail of the assessment sufficient to inform planning and investment decisions. Utilities shall identify material assumptions and information gaps and may rely on existing data, estimates, studies, and filings to avoid duplicative reporting. The Commission may require updates through existing utility planning filings.

Section 4. Commission Study and Report.
(a) The Commission shall conduct a study, using the information submitted under Section 3 and other reasonably available information, to evaluate opportunities to improve grid utilization and enable electric utilities to:

1. safely, reliably, efficiently, and cost-effectively meet electric system demand; and
2. provide safe, reliable, and affordable electric utility service to customers.

(b) In conducting the study, the Commission shall evaluate:

1. transmission and distribution grid utilization and relevant system constraints within the context of peak conditions, reliability, asset health, and projected demand growth;
2. opportunities identified through that assessment, including where:
   • (i) existing infrastructure has available capacity to accommodate additional demand safely, reliably, and cost-effectively;
   • (ii) targeted flexibility, capacity-enhancing technologies, or operational strategies could address constraints and enable additional demand to be accommodated through existing infrastructure; and
   • (iii) utilization, system constraints, and projected demand growth indicate a potential need for infrastructure upgrades or expansion.
3. key cost, customer benefit, and implementation considerations associated with the opportunities identified, including areas requiring further evaluation through utility planning; and
4. barriers to implementation and potential methods to address them through existing utility planning, procurement, and regulatory processes.

(c) In conducting the study, the Commission may consult with or invite comments from:

1. regional transmission organizations or independent system operators;
2. the Federal Energy Regulatory Commission or other federal regulators;
3. electric utilities;
4. the [State Office of Utility Consumer Advocate or equivalent office] and [State Energy Office or equivalent office];
5. associations or organizations representing utility ratepayers;
6. regulatory commissions in other states;
7. engineers or other experts; and
8. other stakeholders.

(d) The Commission may incorporate information or comments received under subsection (c) into the report required by subsection (e).
(e) Within eighteen (18) months after [EFFECTIVE DATE], the Commission shall submit to the Governor and the Legislature, and publish on the Commission’s public website, a report containing the Commission’s findings regarding the topics set forth in subsection (b). The report shall identify priority opportunities and recommended next steps to improve grid utilization, including opportunities to incorporate the findings into existing utility planning and investment review.

Section 5. Use of Study Findings.
(a) In its next integrated resource plan, distribution system plan, or other applicable system-planning filing required by existing law or Commission rule after publication of the report, an electric utility shall consider the findings relevant to its system and identify feasible next steps, anticipated costs and customer benefits, and an indicative implementation timeline to improve grid utilization.
(b) Within its existing authority, the Commission may consider the study findings in utility planning, procurement, program, and investment reviews and may invite utility proposals for cost-effective projects or operational changes. This section does not create a presumption of approval or cost recovery for those proposals.

Section 6. Construction.
(a) Nothing in this Act expands the jurisdiction of the Commission or supersedes applicable federal law, tariffs, interconnection agreements, or the authority of a regional transmission organization or independent system operator.
(b) Nothing in this Act requires deployment of a particular technology or creates a presumption of project approval or cost recovery.
(c) The Commission shall protect confidential and security-sensitive information in accordance with applicable law.

Section 7. Severability.
If any provision of this Act or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

Section 8. Effective Date.
This Act takes effect on [EFFECTIVE DATE]