Federal

The Department of Energy (DOE) launched the application process for Round 2 of funding under the Grid Resilience State and Tribal Formula Grant program. The ongoing program focuses on modernizing the electricity grid to reduce the impacts of extreme weather and ensure the reliability and resilience of the power sector. Approximately $750 million was awarded in Round 1 in 2023, with states and tribes now following processes for sub-allocating that funding. An additional $1.4 billion is due to be allocated to states, territories, and Indian tribes over the next three years.

Separately, on January 12, the process closed for submission of concept papers as part of Round 2 of the Grid Resilience and Innovation Partnership program. Full applications are due in April and May to compete for about $3.8 billion in funding this year.

The DOE announced up to $70 million of funding to strengthen the energy sector against physical and cyber-attacks. Funding under the All-Hazards Energy Resilience Funding Opportunity is intended to support a range of programs related to cyber research and development, climate mitigation, wildfire mitigation, physical security, and university-based research and development. The expectation is funding will support up to 25 research, development, and demonstration projects, with support ranging from $500,000 to $5 million.

Arkansas

The Arkansas Public Service Commission launched a process for gathering information on the plans of the state’s electric and gas utilities to take advantage of opportunities provided by the Infrastructure Investment and Jobs Act and Inflation Reduction Act. The commission sought information on areas such as application plans, areas of focus, and the impact of funding on existing plans or existing commission programs. The commission highlighted a key focus on increased resilience in Arkansas. Utilities provided responses in early January.

Hawaiii

Senate Bill 2505 would require actions be taken to improve the long-term resilience and environmental sustainability of the state’s electric system. To facilitate this, it proposes requiring the Hawaii Public Utility Commission to establish reliability standards and interconnection requirements. The commission also would have to establish system resilience as a metric it monitors and considers. In addition, the bill encourages the use of advanced grid-modernization technology to improve the overall reliability, resilience, and operational efficiency of the Hawaii electric system.

Massachusetts

In January, the state’s electric utilities submitted their Electric Sector Modernization Plans (ESMPs) to the Department of Public Utilities. The plans outline the present state of the distribution grids, the proposed investment areas, and projections regarding reliability needs. Among other requirements, the ESMPs must detail how utilities will “improve grid reliability, communications and resiliency,” as well as “prepare for future climate-driven impacts on the transmission and distribution systems.”

Maine

The Maine Public Utility Commission published a procedural order seeking comments on Climate Change Protection Plans filed by the state’s utility companies. The utilities submitted their plans in December, in line with the requirement that every three years transmission and distribution utilities must submit a 10-year plan outlining specific actions for addressing the impact of climate change on their assets. The plans are intended to inform the commission in assessing rate cases and other relevant utility proceedings.

Michigan

The Michigan Public Service Commission invited comments on a revised straw proposal developed as part of its Financial Incentives and Disincentives workgroup, which was established to evaluate approaches to better align utility financial performance with customer value, specifically distribution grid performance. The revised proposals covered several areas, including system incentive and storm response metrics, worst-performing circuit metrics, and overall incentive/disincentive potential. The commission also held a further stakeholder engagement session in February. Staff are due to file a further report to the commission no later than May 3, 2024.

Texas

Staff at the Public Utility Commission of Texas published proposals for measures to implement House Bill 2555, which passed last year. The proposals outline the requirements and procedures for an electric utility to submit a resiliency plan for its transmission and distribution systems. The proposals do not define “resiliency” to allow applicants flexibility in making submissions, nor do they restrict utilities in the types of evidence they may provide to support their plans. A final decision on the measures is expected soon.

Vermont

Legislation was introduced requiring the Vermont Climate Action Office to study the costs and benefits of implementing a statewide grid-resilience plan. If passed, House Bill 604 would place obligations on all Vermont electric utilities to consider such measures as undergrounding and storm-hardening of electric lines and deploying energy storage. As a first step, the office, in consultation with the Department of Public Service, would be required to present initial recommended timelines for utility reporting by January 1, 2025.

Wyoming

House Bill 100 sets out proposals for the creation of the Critical Infrastructure Initiative, with a focus on hardening essential infrastructure. Among the requirements is the creation of a critical resilience infrastructure board, which would be required to prepare an annual analysis of Wyoming’s electric grid resilience and critical infrastructure protection and make recommendations for improvements.

Final report published on electrification and Ontario’s energy future

The Electrification and Energy Transition Panel published its Final Report in December 2023. The Ontario government established the panel in 2022 to advise on the energy sector’s role to help Ontario prepare for the energy transition. The report provides 29 recommendations for planning, governance and accountability, partnerships with indigenous groups, innovation, and ensuring meaningful stakeholder engagement. Among the key conclusions was classifying affordability, reliability, and resilience as “an urgent need.” The report highlighted the importance of government working with the energy regulator (the Ontario Energy Board) and the independent electricity system operator to support utilities and communities in assessing climate change’s impact on energy infrastructure and any resulting climate-resilience efforts and adaptation planning.

Key stage reached in the process to set revenues for British utilities

In December 2023, Ofgem published details of the methodologies it would apply for the electricity, gas-transmission, and gas-distribution sectors for the RIIO-3 price control, which will run from April 1, 2026, to March 31, 2031. RIIO (Revenue = Innovation + Incentives + Outputs) is the performance-based framework British energy regulator Ofgem uses to set revenues for all electric and gas utilities. Four key outcomes were identified: developing infrastructure fit for a low-cost transition to net zero, delivering secure and resilient networks, providing a high-quality and reliable service to all consumers, and minimizing the costs of system transformation. Responses were required by March 6. Ofgem will publish its decision on the methodology by July 2024 and its final decision on allowed revenues by December 2025.

Distribution utilities submit investment plans for 2025-30

Three distribution network service providers serving Queensland and South Australia have submitted plans to build, operate, and maintain their distribution networks. Collectively, South Australia Power Networks, Ergon Energy, and Energex are seeking AU$11.7 billion (US$7.6 billion) over the five-year period. These revenues represent an increase from the previous regulatory period and reflect a range of factors, including replacing aging assets, growing demand, increasing levels of electrification, and supporting the connection of distributed energy resources. There is also an increased focus on resilience, with targeted investment plans to address the increasing frequency of major disruptive weather events and to support the rapid transition to a clean energy future. The Australian Energy Regulator is expected to publish its draft decisions in September 2024 and its final decisions in April 2025.