MIT Project Paper Calls for National Policy on Transmission, Smart Grid

Summary: Describing policy oversight of the U.S. electrical grid as a “hodge podge,” a recent paper from the Massachusetts Institute of Technology’s Industrial Performance Center calls on the federal government to develop a coherent national policy on transmission upgrades and standards for the Smart Grid. The document, authored by Mason Willrich, also urges the electricity industry to develop a secure and sustainable approach to providing electric power.

More information: Willrich is a distinguished industry veteran who is not only senior advisor to the MIT project responsible for the study but also serves as the chair of the Governing Board of the California Independent System Operator and as a director of the California Clean Energy Fund, among other positions. In the paper, he points out that individual state policies dominate the electrical industry, even though federal authority overlaps in areas of electric industry structure, generation adequacy, energy resource mix, transmission siting and cost recovery, and retail electricity prices.

Willrich believes a national policy will require legislation that accomplishes the following:

• Clarifies that the Federal Energy Regulatory Commission (FERC) has high voltage transmission planning authority over transmission owners, operators, developers as well as related local, state and federal agencies.
• Give FERC authority to designate regional transmission planning bodies.
• Give regional planning bodies authority to develop regional transmission plans on approved projects in consultation with appropriate stakeholders.
• Empower FERC to set clear timelines for completing transmission planning, review, modification, and approval.
• Ensure that FERC’s approval of proposed projects in regional plans is final for other government agencies.

According to a report in Energy Daily, some of Willrich’s wish list is already in yet-to-be-passed bills now in Congress, with the Senate bill most closely aligned with Willrich’s recommendations.

The MIT paper, titled “Electricity Transmission Policy for America: Enabling a Smart Grid, End-to-End,” also stresses the importance of creating nationwide Smart Grid standards.

   Energy Daily report