The Advanced Transmission Technologies Act

Task Forces: Energy, Environment and Agriculture

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Summary

This model policy requires electric utilities to evaluate advanced transmission technologies as part of integrated resource planning and directs the state utility commission to study their costs, benefits, deployment barriers, and potential to increase transmission capacity, efficiency, reliability, safety, and resiliency. It recognizes grid-enhancing technologies, advanced conductors, and other qualifying innovations as eligible grid-modernization investments, subject to existing commission review and approval requirements.

Model Policy

Section 1. Short Title.
This Act shall be known and may be cited as the “Advanced Transmission Technologies Act.”


Section 2. Definitions. As used in this Act:
(a) “Advanced transmission technologies” means software or hardware technologies that increase the capacity, efficiency, reliability, or safety of an existing or new electric transmission facility, including:

  1. grid-enhancing technologies, such as dynamic line rating, advanced power flow controllers, and topology optimization;
  2. advanced conductors; and
  3. other technologies designed to:
    • i. reduce transmission congestion; or
    • ii. increase the capacity, efficiency, reliability, or safety of an existing or new electric transmission facility.

(b) “Commission” means the State Public Utility Commission or equivalent regulatory authority.
(c) “Electric utility” means an electric public utility subject to the jurisdiction of the Commission that owns or operates an electric transmission or distribution system and is required by state law or Commission rule to submit an integrated resource plan.
(d) “Integrated resource plan” means a utility resource-planning filing required by state law or Commission rule that evaluates the resources and system investments reasonably available to meet forecasted electricity demand.


Section 3. Integrated Resource Plan Requirements.
(a) In each integrated resource plan filed with the Commission after [DATE], an electric utility shall include a description of the potential use of, or investment in, one or more advanced transmission technologies to enable the electric utility to safely, reliably, efficiently, and cost-effectively meet electric system demand. The description shall take into consideration cost, risk, uncertainty, and the alternative investments needed to build new transmission infrastructure if advanced transmission technologies are not deployed.
(b) In each integrated resource plan filed with the Commission after [DATE], an electric utility shall include a description of the electric utility’s transmission and distribution systems, as applicable, in the form and level of detail specified by the Commission.
(c) Evaluations conducted pursuant to this section shall consider the potential of advanced transmission technologies to increase transmission capacity, improve system reliability and efficiency, reduce congestion, accelerate interconnection, and provide cost-effective alternatives to traditional transmission infrastructure.
(d) Nothing in this section shall require an electric utility to establish an integrated resource planning process or submit a new integrated resource plan where one is not otherwise required by state law or Commission rule.

Section 4. Commission Study and Report.
(a) The Commission shall conduct a study to evaluate the potential use or deployment of advanced transmission technologies by electric utilities to 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. the attributes, functions, costs, and benefits of various advanced transmission technologies, including grid-enhancing technologies and advanced conductors. In evaluating the attributes of a technology under this paragraph, the Commission shall consider whether the technology:
    • i. increases transmission capacity;
    • ii. increases transmission efficiency;
    • iii. reduces transmission congestion;
    • iv. reduces the curtailment of generation resources;
    • v. increases system reliability;
    • vi. increases system resiliency; and
    • vii. increases the capacity to connect new energy generation resources;
  2. the potential of each advanced transmission technology studied to be used or deployed by electric utilities to provide safe, reliable, and affordable electric utility service to customers in this state, considering existing and planned transmission infrastructure and projected demand growth;
  3. potential reductions in project costs and project-completion timelines from deploying advanced transmission technologies, as compared with traditional transmission infrastructure;
  4. potential methods to streamline the deployment of advanced transmission technologies, including streamlined processes for permitting, maintenance, and upgrades; and
  5. any other aspect of advanced transmission technologies that the Commission determines will assist policymakers, electric utilities, ratepayers, and other stakeholders in understanding the potential role of advanced transmission technologies in the transmission system serving this state and the region.

(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;
  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) in the report required by subsection (e).
(e) Not later than fifteen (15) months after the effective date of this Act, 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).


Section 5. Eligibility as a Grid-Modernization Investment.
(a) To the extent state law authorizes Commission review and approval of transmission, distribution, or storage system-modernization plans or associated cost recovery, a project involving investment in advanced transmission technologies to support modernization of a transmission, distribution, or storage system shall be eligible for consideration under that law on the same basis as other qualifying advanced technology investments.
(b) A project described in subsection (a) remains subject to all otherwise applicable requirements for Commission approval, including any requirement that the project be prudent, reasonable, cost-effective, and in the public interest. This section does not create a presumption of approval or cost recovery.

Section 6. Construction.
(a) Nothing in this Act requires an electric utility to deploy a particular advanced transmission technology or requires the Commission to approve a particular investment.
(b) Nothing in this Act alters the authority of the Federal Energy Regulatory Commission, a regional transmission organization, or an independent system operator over matters within its jurisdiction.
(c) A construction project for a qualifying advanced transmission technology is exempted from state environmental reviews if within existing rights of way.

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]