Change High use High use as Moderate Moderate Used if cost At current C&I based on available use as use, benefits are levels unless policy available business worthwhile increased by specific policy Residential Not High use as High use as Moderate High use Used if cost At current Rural* applicable available available use as benefits are levels unless available worthwhile increased by policy Residential Possible High use High use as High use as High Use Used if cost At current Urban selling to available available benefits are levels unless local utility worthwhile increased by based on policy policy Agricultural Selling or High use High use as Dependent High use Used if Not buying to available on local offered by applicable local utility local Co-op or Co-op by large agricultural companies based on policy Policymakers are not sure in all cases how to react to some of these changes, but in general, they lean toward asking for and are granted increased regulatory authority to set new rules. Policies that govern how distributed resources can be used to support overall system reliability are an area of debate. Distribution companies are ordered to procure reliability services from distributed resources and to assure the bulk power system reliability performance through long-term contracts for services. Policy makers begin to approve large investments by distribution system owners for system upgrades, and allow recovery of those costs through revised utility rates. In a few states, experiments with adding two-way power flow capability are approved, and oversight for safety and quality of power is strengthened with new standards. The Federal government is not sitting idly by and watching these changes. FERC steps in to assure states are holding up reliability standards. Increased standards in some areas lead to increased costs in utility rates. FERC is particularly watching customer choice aggregation and micro-grids which might not have access to secure long-term supplies of power. At the same time, FERC keeps an eye on how large industrial and commercial customers are using micro-grids to assure they have adequate capacity without subsidies from local power companies in the event of a disruption. Table 4.2: Category & Forms of Oversight
C&I Change based on policy High use High use as available Moderate use as available Moderate use, business specific Used if cost benefits are worthwhile At current levels unless increased by policy Residential Rural* Not applicable High use as available High use as available Moderate use as available High use Used if cost benefits are worthwhile At current levels unless increased by policy Residential Urban Possible selling to local utility based on policy High use High use as available High use as available High Use Used if cost benefits are worthwhile At current levels unless increased by policy Agricultural Selling or buying to local utility or Co-op by large agricultural companies based on policy High use High use as available Dependent on local High use Used if offered by local Co-op Not applicable Policymakers are not sure in all cases how to react to some of these changes, but in general, they lean toward asking for and are granted increased regulatory authority to set new rules. Policies that govern how distributed resources can be used to support overall system reliability are an area of debate. Distribution companies are ordered to procure reliability services from distributed resources and to assure the bulk power system reliability performance through long-term contracts for services. Policy makers begin to approve large investments by distribution system owners for system upgrades, and allow recovery of those costs through revised utility rates. In a few states, experiments with adding two-way power flow capability are approved, and oversight for safety and quality of power is strengthened with new standards. The Federal government is not sitting idly by and watching these changes. FERC steps in to assure states are holding up reliability standards. Increased standards in some areas lead to increased costs in utility rates. FERC is particularly watching customer choice aggregation and micro-grids which might not have access to secure long-term supplies of power. At the same time, FERC keeps an eye on how large industrial and commercial customers are using micro-grids to assure they have adequate capacity without subsidies from local power companies in the event of a disruption. Table 4.2: Category & Forms of Oversight
WECC%202018-2019%20Draft%20Scenarios%20for%20Horizon%20Year%202038%20v0.1.docx