Resolution Directing Regional Transmission Organizations to Implement Electric Reliability Policies

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Summary

This resolution instructs the state’s public utility commission and electric utilities to promote policies at their regional transmission organizations (RTO) to maintain the reliability of the bulk power system and accurately value dispatchable generation based on their contribution to a reliable grid.

Resolution Directing Regional Transmission Organizations to Implement Electric Reliability Policies

WHEREAS, the welfare of [STATE] citizens and its energy security and economic growth depend on a reliable, affordable, and resilient electric power supply;  

WHEREAS, the Federal Energy Regulatory Commission has expressed concerns about the reliability and stability of the regional and national electricity grid due to the rapid retirement of dispatchable generation resources, delays in the development of replacement capacity, and the increasing reliance on intermittent energy sources, which collectively pose risks to the ability of regional transmission organizations to ensure consistent and reliable power delivery;  

WHEREAS, the North American Electric Reliability Corporation’s 2024 Long-Term Reliability Assessment warns that over half of North America faces elevated risks of energy shortages due to increasing demand, rapid generator retirements, and delays in resource development; 

WHEREAS, the major regional transmission organizations have been identified as a high or elevated risk region, with resource adequacy targets potentially falling short within the next 5 years;  

WHEREAS, these regional transmission organizations have experienced repeated maximum generation alerts and load-shedding events in recent years, highlighting the critical need to address resource adequacy and reliability issues; 

WHEREAS, the accelerated retirement of dispatchable generation resources, combined with insufficient replacement capacity, creates a widening reliability gap as weather-dependent resources saturate the grid;  

WHEREAS, announced dispatchable generation retirements in the regional transmission organization is projected to exceed (_#_ )Megawatts by 2030, further exacerbating resource adequacy challenges; 

WHEREAS, direct and indirect subsidies for specific energy resources distort market economics, making it difficult for dispatchable generation resources to remain economically viable and accelerating early retirement;  

WHEREAS, reforming market pricing mechanisms is urgently needed to ensure these critical attributes are appropriately valued, supporting the continued operation of resources necessary for grid reliability and resilience;  

NOW, THEREFORE BE IT RESOLVED, by the __state___ legislature that we direct: 

  1. The ___state utility commission___ to assess the risk of not having sufficient generation and infrastructure to meet current and future electrical demand during times of extreme weather.  
  2. Such assessment shall include an analysis of electric reliability with continued membership in the __regional transmission organization _ and with removal from such membership.   
  3. The __state utility commission_ and the electric utilities operating in this state to take immediate and decisive actions to maintain the reliability of the bulk power system by addressing market failures that have allowed capacity retirements to outpace replacement;   
  4. The __state utility commission and the electric utilities in this state to advocate for policies in __regional transmission organization__ that fairly compensate dispatchable energy resources, accurately value all generation resources based on contributions to grid reliability, and ensure the availability of generation at all hours to meet demand;  
  5. The __state utility commission__ and the electric utilities in this state shall provide periodic updates and an annual report to my office as to the actions and accomplishments set out in this executive order.