Affordable, Reliable, and Resilient Electricity Act
SECTION 1. DEFINITIONS
• “Affordable” means that the lowest cost means of providing electricity is used, factoring in the true and total cost of each generation source.
• “Reliable” means that load shedding events are extremely rare and that there are no system wide power shortages or brownouts for more than a few hours once every 10 years.
• “On demand power” otherwise known as “dispatchable” power, means electricity from sources whose output is not weather dependent and can be controlled to meet changes in demand.
• “Intermittent generation”, also known as non-dispatchable power, means electric generation that that varies minute-to-minute based on weather conditions.
• “Firming power” means electric systems that provide at least 48 hours of back-up power to “firm” intermittent generation.
• “Peak net load” is the estimated peak demand minus the minimum predicted level of intermittent generation.
• “Reserve margin” means the amount of on-demand and firming power needed to meet peak net load.
1. The electric utility regulatory agency shall develop rules and procedures to ensure that the electric grid within the state, or to which the state’s grid is interconnected, is affordable, reliable, and resilient.
2. The grid will be considered affordable, reliable, and resilient if:
a. Electricity is provided with the lowest total cost factoring in the true and total cost of competing power generation resources, including the fiscal costs of direct and indirect subsidies, and the cost of transmission, firming power, and other system costs necessary to integrate a given generation resource without sacrificing grid reliability or resilience.
b. It maintains a minimum reserve margin of 15%; and
c. Generation resources serving the grid meet continuous operating requirements for summer and winter peaks, including extreme weather events that necessitate on-site fuel storage, dual fuel capability, or fuel supply arrangements to ensure winter performance for several days.
3. Intermittent generation shall be required to provide firming power up to their average output level during periods of peak net load, and the cost of that firming shall be attributed to or otherwise included in the rate structure consistent with cost-causation principles.
4. The minimum reserve margin shall be a primary consideration of the electricity regulatory agency when retiring or adding electric generation.
5. That the state (AGENCY) coordinate with regional transmission organizations to ensure and develop policies reflected above which provide reliable, dispatchable power for the region in an effective and consistent manner.