The Middle Years 2024-2031: Fracturing the Grid During these years, the lack of coordination and cooperation between the states and provinces in the Western Interconnection starts the ball rolling toward the longer-term fracturing of the bulk power system in the West. Some states and provinces decide to continue to support the bulk system while others effectively opt out by not being willing to participate in any costs related to the expansion of the grid. Some agree to pay the absolute minimum in other costs to assure access in emergencies or in the event of catastrophic events. In the longer term, the operations of the bulk power system will have to be restructured. Underneath the fracturing of the system are significant policy disagreements about how to handle the costs associated with providing electric power services, and who should incur them based on what received benefits. In some states and provinces there is a strong concern for high-income customers who can afford distributed generation options pushing costs on customers who remain tied to the traditional system. In others, there are concerns about paying for reserve capacity to assure reliability when wind and solar power sources are not delivering. Other states are trying to avoid costly the “duck curve” phenomena when there is steep daily ramping up and down of energy needs with impacts on energy prices. On the most fundamental policy level, some state regulatory rulings are aimed at assuring the notion that power is a public good that does not exist in a vacuum from other issues of economic and community development. With such variations in concern and actions, it is not surprising that an un-coordinated field of energy policies emerge in the Western Interconnection. Table 1.1: Category & Forms of Oversight Policy Area Statewide Oversight Local: County/City Scenario 1 Oversight Electric Rates, Prices and State/Provincial PUCs For municipal utilities Wide variations across Revenue and community the region with little or aggregation no commonality Renewable Portfolio State/Provincial Laws For municipal utilities RPS are maintained Standards & Climate and PUCs and community where they exist, and aggregation climate issues are addressed with widely varying laws and actions Air Quality, Water and State/Provincial Laws, City & County Concerns about Land Use Commissions & Agencies Departments and environment quality are Agencies common throughout the region, actions may vary widely Capital/Resource State/Provincial Laws, For municipal utilities Investments and Investment Planning ISOs, Commissions & and community approvals are considered Approval Agencies aggregation from a cost-benefit view of tested and proven technology and infrastructure
The Middle Years 2024-2031: Fracturing the Grid During these years, the lack of coordination and cooperation between the states and provinces in the Western Interconnection starts the ball rolling toward the longer-term fracturing of the bulk power system in the West. Some states and provinces decide to continue to support the bulk system while others effectively opt out by not being willing to participate in any costs related to the expansion of the grid. Some agree to pay the absolute minimum in other costs to assure access in emergencies or in the event of catastrophic events. In the longer term, the operations of the bulk power system will have to be restructured. Underneath the fracturing of the system are significant policy disagreements about how to handle the costs associated with providing electric power services, and who should incur them based on what received benefits. In some states and provinces there is a strong concern for high-income customers who can afford distributed generation options pushing costs on customers who remain tied to the traditional system. In others, there are concerns about paying for reserve capacity to assure reliability when wind and solar power sources are not delivering. Other states are trying to avoid costly the “duck curve” phenomena when there is steep daily ramping up and down of energy needs with impacts on energy prices. On the most fundamental policy level, some state regulatory rulings are aimed at assuring the notion that power is a public good that does not exist in a vacuum from other issues of economic and community development. With such variations in concern and actions, it is not surprising that an un-coordinated field of energy policies emerge in the Western Interconnection. Table 1.1: Category & Forms of Oversight Policy Area Statewide Oversight Local: County/City Oversight Scenario 1 Electric Rates, Prices and Revenue State/Provincial PUCs For municipal utilities and community aggregation Wide variations across the region with little or no commonality Renewable Portfolio Standards & Climate State/Provincial Laws and PUCs For municipal utilities and community aggregation RPS are maintained where they exist, and climate issues are addressed with widely varying laws and actions Air Quality, Water and Land Use State/Provincial Laws, Commissions & Agencies City & County Departments and Agencies Concerns about environment quality are common throughout the region, actions may vary widely Capital/Resource Investment Planning Approval State/Provincial Laws, ISOs, Commissions & Agencies For municipal utilities and community aggregation Investments and approvals are considered from a cost-benefit view of tested and proven technology and infrastructure
WECC%202018-2019%20Draft%20Scenarios%20for%20Horizon%20Year%202038%20v0.1.docx