2024年警惕監(jiān)管缺口：加強(qiáng)地方輸電監(jiān)管的策略研究報(bào)告（英文版）

MindtheRegulatoryGap

HowtoEnhanceLocalTransmissionOversight

Report/November2024

AuthorsandAcknowledgments

Authors

ClaireWayner

KajaRebane(formerlyRMI)ChazTeplin

AllauthorsfromRMIunlessotherwisenoted.

Contacts

ClaireWayner,

cwayner@

ChazTeplin,

cteplin@

CopyrightsandCitation

ClaireWayner,KajaRebane,andChazTeplin,MindtheRegulatoryGap:HowtoEnhanceLocalTransmissionOversight,RMI,2024,

/insight/mind-the-regulatory-gap

.

RMIvaluescollaborationandaimstoacceleratetheenergytransitionthroughsharingknowledgeand

insights.Wethereforeallowinterestedpartiestoreference,share,andciteourworkthroughtheCreativeCommonsCCBY-SA4.0license.

/licenses/by-sa/4.0/

.

AllimagesusedarefromiSunlessotherwisenoted.

Acknowledgments

Theauthorswouldliketothankthefollowingindividualsfortheirhelpfulcontributionstothisreport,suchasparticipatingininterviewsandreviewingearlydrafts.Allerrorsremainourown.

CommissionerDavanteLewis,LouisianaPublicServiceCommission

FormerCommissionerTedThomas,ArkansasPublicServiceCommissionFormerChairmanKentChandler,KentuckyPublicServiceCommission

DonKreis,NewHampshireOfficeoftheConsumerAdvocate

ChairmanPhilBartlett,MainePublicUtilitiesCommission

CommissionerSarahFreeman,IndianaPublicUtilitiesCommissionErikHanser,MichiganPublicServiceCommission

CharlieInmanandAaronCahen,WashingtonUtilitiesandTransportationCommissionBrianLipman,NewJerseyDivisionofRateCounsel

ChairpersonAndrewFrench,KansasCorporationCommissionEdSmeloff,consultant

JoshWalters,ConnecticutPublicServiceCommissionGregPoulos,ConsumerAdvocatesofPJMStates

AriPeskoe,HarvardElectricityLawInitiative

JoshMacey,YaleLawSchoolNickLawton,Earthjustice

NickGuidi,SouthernEnvironmentalLawCenter

MindtheRegulatoryGap:HowtoEnhanceLocalTransmissionOversight/2

Acknowledgments,continued

TylerFarrell,RMIRachelGold,RMIBevBendix,RMI

CarinaRosenbach,RMI

CamdenBurk,formerlyRMI

AboutRMI

RMIisanindependentnonprofit,foundedin1982asRockyMountainInstitute,thattransformsglobalenergysystemsthroughmarket-drivensolutionstoalignwitha1.5°Cfutureandsecureaclean,

prosperous,zero-carbonfutureforall.Weworkintheworld’smostcriticalgeographiesandengage

businesses,policymakers,communities,andNGOstoidentifyandscaleenergysysteminterventionsthatwillcutclimatepollutionatleast50percentby2030.RMIhasofficesinBasaltandBoulder,Colorado;NewYorkCity;Oakland,California;Washington,D.C.;Abuja,Nigeria;andBeijing.

MindtheRegulatoryGap:HowtoEnhanceLocalTransmissionOversight/3

TableofContents

ExecutiveSummary 5

Introduction:TheRegulatoryGap 11

TransmissionPlanningandRatemakingintheUnitedStates 15

FederalRatemakingAuthority 15

RegionalPlanning 17

HowLocalProjectsAreCurrentlyConsideredinRegionalPlanning 18

HowFERCOrderNo.1920WillChangetheConsiderationofLocalProjectsinRegionalPlanning 19

StateRegulatoryAuthority 22

CertificateofPublicConvenienceandNecessity 23

IntegratedResourcePlanning 24

State-LevelRateCases 25

EngaginginRegionalPlanning 26

ConsequencesoftheRegulatoryGap 27

AddressingtheRegulatoryGap 34

RegionalReforms 34

ImplementRegional-FirstPlanning 34

StandardizeLocalProjectDefinitionsandTracking 37

StrengthenStateInputandInfluenceattheRegionalLevel 38

FederalReforms 39

ReformtheFormulaRateProcess 40

EstablishanIndependentTransmissionMonitor 41

ExplorePerformance-BasedRegulationforTransmission 42

StateReforms 43

LeverageandExpandCPCNAuthority 43

OfferExpeditedCostRecoveryforLocalProjectsthatUndergoaRobustRegionalReview 44

UpdateIntegratedResourcePlanstoFocusonTransmission 46

CreateandFullyLeverageElectricTransmissionAuthorities 46

GrowRegulatoryStaffCapacityandExpertise 46

Conclusion 48

Endnotes 49

MindtheRegulatoryGap:HowtoEnhanceLocalTransmissionOversight/4

ExecutiveSummary

Inthecomingyears,theUnitedStateswillneedtosubstantiallyexpandthecapacityofitselectric

transmissiongridtoreplaceaginginfrastructure,accommodateloadgrowthfromdatacentersandend-useelectrification,interconnectlow-costcleangeneration,andensurereliabilityandresilienceinthefaceofincreasinglysevereweather.Transmissionexpansionwillrequiresignificantnewinvestment—yetmanyAmericansalreadystruggletopaytheirmonthlyelectricitybills.Toachieveaffordabilitythroughthecleanenergytransition,itwillthereforebeessentialforplannersandregulatorstoensurethatratepayermoneyisspentefficiently.

Toexpandthetransmissiongridinanefficientmanner,smartplanningisessential.Akeyingredientof

thiswillbeensuringtherightmixoflocalprojects(thosethatarebuiltbyasingleutilitytomeetneeds

withinitsownfootprint)andregionalprojects(thosethatareregionallyplannedtomeetmultipleutilities’needs).Toachievetheneededlocalandregionalbalance,alltransmissionprojectswillneedtoreceive

theappropriateregulatoryscrutiny,includingidentifyingwherelocalprojectscouldbescaleduptosimultaneouslymeetregionalneeds(aprocessknownasright-sizingi).

Today,however,thereisaregulatorygap.Localprojectsarereceivinglittleoversight.Thisgapresultsfromanumberoffactors,including:

?Regionalplanningentities,suchasregionaltransmissionorganizations(RTOs)andindependentsystemoperators(ISOs),considerlocalprojectsoutsideoftheirpurview;

?TheFederalEnergyRegulatoryCommission(FERC)assumesprojectcostswereprudentlyincurredunlessstakeholderscanproveotherwise;and

?Statepublicutilitycommissions(PUCs)oftenhavelimitedoversightauthoritywhenitcomestolocalprojects.

iRight-sizingmeansconsideringwhetheralargerprojectcouldbettermeetbothlocalandregionalneedsthanthesmaller

project.Itisavitalaspectofsoundplanningbecauseoftenasinglelargeprojectisabletomorecost-effectivelymeetmultipleneedsthanaseriesofindividuallyplannedsmallprojects,whilereducingtotallanduseandenvironmentalimpacts.

MindtheRegulatoryGap:HowtoEnhanceLocalTransmissionOversight/5

ExhibitES1summarizesthemainfactorsthatcontributetotheregulatorygap.ExhibitES2thencomparesthelackofreviewthatlocaltransmissionprojectsreceivetotherobustreviewprocessforregionalprojects.

ExhibitES1TheRegulatoryGapforLocalTransmissionProjects

Local

projectproposed

RMIGraphic.

RegionalPlanningEntity

StatePUC

?TheRTOsayslocal

projectsareoutsideitsplanningpurview

?Itmaydoabasicno-harmanalysis,butnomeaningfulreviewoftheproject

?SinceFERChasratemakingauthority,thePUChaslittleoversightpoweroverrates

?Thoughthestatemayrequire

anintegratedresourceplanoracertificateofpublicconvenienceandnecessityinsomecases,

thesedonotenablethePUCtoensureprudence

FERC

?FERCformularatecasesassumeprudenceanddonotexaminecostsattheprojectlevel

?Theburdenofprooftoshowimprudencerestsonstakeholders,whorarelyhaveaccesstothenecessaryinformation

Local

projectbuilt

ExhibitES2RegionalTransmissionProjectReviewProcess

Regionalneedidentifiedthroughrobust,

stakeholder-informedplanningprocess

Regionalplanningentitypickswinningsolutionanddeterminescostallocationacrossallrelevantentities

Projectismonitored

forcostoverrunsbytheregionalplanningentitythroughoutconstruction

Regionalplanningentityconductscompetitive

solicitationprocess

Projecttypicallyreceivesacertificateofpublicconvenienceandnecessityfromeachstateitpassesthrough

Regionalprojectbuilt

RMIGraphic.

MindtheRegulatoryGap:HowtoEnhanceLocalTransmissionOversight/6

AsillustratedinBoxES1,thisregulatorygaphascorrespondedwithabroadnationwideshiftin

transmissionspendingfromregionaltransmissionprojectstolocalprojects.Thisshiftcaninpartbe

attributedtotheincentivescreatedbyalackofaccountabilityresultingfromtheregulatorygap,asweexplorefurtherinthisreport.

BoxES1

EvidenceoftheShiftinTransmissionSpendingtoLocalProjects

?AccordingtotheFERCStateoftheMarkets2021report,since2014,thepercentageof

spendingontransmissionprojectsintheUnitedStateswithvoltagesof230kilovoltsorhigherhasbeensteadilydeclining,from72%in2014tojust34%in2021.

1

?ArecentanalysisbyGridStrategiesfoundthatwhiletransmissionspendinghitanall-

timehighin2023,theUnitedStatesbuiltonly“20%asmuchnewtransmission[mileage-wise]inthe2020sasitdidinthefirsthalfofthe2010s.”O(jiān)nly55milesofnewhigh-voltagetransmissionwereaddedin2023,comparedtoarecord4,000milesin2013.

2

?AnalysisbytheBrattleGroupfoundthat90%ofrecenttransmissionspendinghasbeenonlower-voltagereliabilityupgrades,with50%ofallspendinggoingtowardlocalprojects.

3

Regionaltrends,wheredataisreadilyavailable,confirmthesenationaltrends.

?Inthemid-Atlantic(PJMInterconnection),spendingonlocalprojects(i.e.,Supplementalprojects)increasedfrom9%oftotalspendfrom2005to2013to73%oftotalspendfrom

2014to2021.

4

?InNewEngland(ISONewEngland),spendingonlocalprojects(i.e.,assetconditionprojects)increasedeightfoldfrom2016to2023.

5

?IntheMidwest(MidcontinentIndependentSystemOperator),localprojects(i.e.,Otherprojects)haveincreasedfrom54%oftotalspendin2017to78%in2022.

6

?InCalifornia(CaliforniaIndependentSystemOperator),63%ofprojectsfrom2018to2022werelocal(i.e.,self-approvedprojects)andthusnoteligibleforstateorregionalreview

.7

MindtheRegulatoryGap:HowtoEnhanceLocalTransmissionOversight/7

Weidentifiedtheregulatorygapanditsimpactsthroughinterviewswithstateregulators,consumer

advocates,andothers,aswellasreviewofFERCfilingsandrelatedevidence.Werecommend11regional,federal,andstatereformstoaddresstheregulatorygap:

RegionalReforms

?Regionalplanningentitiescanimplementregional-firstplanning,whichwedescribefurtherinExhibitES3.Regional-firstplanningwouldensureright-sizingisconsideredforalllocalneeds.FERCcouldrequireregional-firstplanningorindividualregionalplanningentitiescouldadoptitontheirown.

?FERCcanstandardizelocalprojectdefinitionsandtrackingacrossregionalplanningentities.

?FERCandregionalplanningentitiescanstrengthenstateinputandinfluenceattheregionallevel.FederalReforms

?FERCcouldreformtheformularateprocesstoapplyonlytoprojectsthatreceiveadequateregionaland/orstatereview.Thiscouldhelpaddressthecauseoftheregulatorygapbyenablinggreater

scrutinyoflocalprojectexpenditurestoensureprudence.

?FERCcouldestablishanindependenttransmissionmonitor(ITM),eitherasinglefederalITMoroneforeachplanningregion.

?FERCcouldexploreperformance-basedregulationfortransmission.

StateReforms

?SomestatesrequirePUCstoapprovetransmissionprojectsthroughtheissuanceofacertificateofpublicconvenienceandnecessity(CPCN).StatePUCscanleverageandexpandCPCNauthorityforlocaltransmissionprojects.

?PUCscouldofferexpeditedcostrecoveryforlocalprojectsthathaveundergonearobustregional

review,ratherthanmakingexpeditedrecoveryviarateridersthedefaultoptionforalltransmissioncosts.

?PUCscouldupdateintegratedresourceplans(IRPs)toincorporatetransmission,includingregional-firstplanning.

?Statescouldcreateandfullyleverageelectrictransmissionauthorities,whichareindependentbodiesestablishedtocoordinatetransmissiondevelopment,tohelpenableregional-firstplanning.

?StatelegislaturesandotherscouldhelpPUCsgrowtheirregulatorystaffcapacityandexpertisetomoreeffectivelyconductoversightwheretheyhaveexistingauthority.

MindtheRegulatoryGap:HowtoEnhanceLocalTransmissionOversight/8

ExhibitES3ComponentsofRegional-FirstPlanning

Utilitiessubmitproposedlocalneeds.Transmissionownerssubmitanticipatedlocalneedsatthestartofeachregionalplanningcycle,whetheritinvolvesplanningovertheshorttermorthelongterm.

Planningentityidentifiestheregion’sneeds.Theregionalplanningentitydeterminesallregionalneedsholisticallyinadditiontosubmittedlocalneeds

Planningentityidentifiesthebestsolutions.Theregionalplanningentitydeterminesthebestsolutionstotheidentifiedlocalandregionalneeds,includingwhetherlocal

projectscanberight-sizedtomeetregionalneedsandwhetheralternativetransmissiontechnologiescanbeutilized.

Transmissionowneroptionallysubmitsadditionallocalprojects.Followingthe

regionalplanningentity’sidentificationofsolutions,eachtransmissionownercanproposeadditionallocalprojectsforconsiderationiftheyfeelthereareunmetlocalneeds.Such

projectsmuststillundergostateandfederalreviewandmaybeheldtoahigherstandard.

RMIGraphic.

Continuingthestatusquoapproachtotransmissionplanning,whichseparateslocalandregionalplanning,perpetuatesthisregulatorygapandisaninherentlyinefficientwaytoexpandthegrid.Manyuncoordinatedlocalprojectswillgenerallybemorecostlythanlarger,well-plannedregionalprojects,andtheywillalso

tendtohavegreaterlanduseandenvironmentalimpacts.iiAdditionally,well-plannedregionalprojectscanoffersignificanteconomic,operational,andemissionsreductionbenefitsthatlocalprojectsmaynotoffer.iiiThisapproachalsomissesakeyopportunitytoproactivelydesignthegridofthefutureratherthansimplyrebuildthegridofthepast.ivAlthoughregionalplanningcanrequireaconsiderableup-frontinvestmentintimeandresourcestoproducehigh-qualityresults,webelievethatthisinvestmentisessentialtoproducethemostbeneficialresultsforcustomersaswellasbetterlanduseandenvironmentaloutcomes.

iiEvenifaregionalprojectisbuiltatlargerscaletomeetlocalneedsinadditiontoregionalones,itcanreducelanduseand

environmentalimpactsbyobviatingtheneedforadditionallocalprojects.Incontrast,iflocalneedsareseparatelyaddressedviaseverallocallyplannedprojects,theoverallresultislikelytohavemorelandusageandrelatedenvironmentalimpacts.

iiiWell-plannedregionalprojectssuchasMISO’sMulti-ValueProjectsprocessandTexas’sCompetitiveRenewableEnergy

Zonesprocesshavebeencreditedwithreturningsignificanteconomicbenefitstothegrid.Incontrast,localprojectsalmostalwayslackevenasimplecost-benefitanalysis(“TexasasaNationalModelforBringingCleanEnergytotheGrid,”AmericansforaCleanEnergyGrid,October13,2023,

/texas-national-model-bringing-clean-

energy-grid/

;andMTEP17MVPTriennialReview,MISO,September2017,

/MTEP17%20MVP%20

Triennial%20Review%20Report117065.pdf

).

ivForanexampleofthemissedopportunitiesthatcanarisewhenwedonotplanproactivelyforthegridofthefuture,pleaserefertothefollowingresourceonthepost–HurricaneMariagridrebuildinPuertoRico:IsaacToussieetal.,TheRoleof

RenewableandDistributedEnergyinaResilientandCost-EffectiveEnergyFutureforPuertoRico,RMI,December2017,

https://

/wp-content/uploads/2017/12/Insight_Brief_Puerto_Rico_Resilient_CostEffective_Energy.pdf

.

MindtheRegulatoryGap:HowtoEnhanceLocalTransmissionOversight/9

Eachofthereformsweidentifyaddressesadifferentaspectoftheregulatorygap,andifadoptedtogethertheywouldcomplementoneanother.Therefore,werecommendthatactorsattheregional,federal,

andstatelevelspursueappropriatereformsinparallel.ExhibitES4illustratesourproposedreformstoalleviatetheregulatorygapbygeographiclevel.Takentogether,thesecouldhelpaddresstheregulatorygap,improvingthequalityoftransmissionplanningintheUnitedStatesandproducingbetterresultsforcustomersandsociety.

ExhibitES4ProposedReformstoAlleviatetheRegulatoryGap

GeographicLevel

ProposedChange

Regional

?Implementregional-firstplanning

?Standardizelocalprojectdefinitionsandtracking

?Strengthenstateinputandinfluenceattheregionallevel

Federal

?Reformtheformularateprocess

?EstablishanITM

?Exploreperformance-basedregulationfortransmission

State

?LeverageandexpandCPCNauthority

?Offerexpeditedcostrecoveryforlocalprojectsthathaveundergonearobustregionalreview

?UpdateIRPstoincorporatetransmission

?Createandfullyleverageelectrictransmissionauthorities

?Growregulatorystaffcapacityandexpertise

Note:Multiplepartiesacrossgeographiesmayneedtotakeactiontofullyrealizesomereforms.Forinstance,implementingregional-firstplanningwilllikelyrequireactionbyFERC.

RMIGraphic.

MindtheRegulatoryGap:HowtoEnhanceLocalTransmissionOversight/10

Introduction:TheRegulatoryGap

Acrossthecountry,transmissionspendinghasbeenrisingrapidly,drivenbyacombinationofneeds

includingreplacingaginginfrastructure,connectingnewgenerationresources,andaddressingload

growth.TheUSEnergyInformationAdministrationfoundin2021thatspendingontheelectrictransmissionsystemhasincreasedalmostfivefoldinthepasttwodecades,from$9.1billionin2000(2019dollars)to$40billionin2019.

8

Lookingahead,thecleanenergytransitionisgoingtorequireevengreaterinvestmentin

transmissiontoconnectnewlow-costgenerationresourcestoloadcenters—uptoa60%increaseintotaltransmissioncapacityby2030andatriplingby2050,accordingtoresearchersatPrincetonUniversity.

9

Exhibit1AnnualUtilitySpendingontheUSTransmissionSystem(2000–19)

OperationsandMaintenanceNewInvestment$Billions

$40

$30

$20

$10

$0

2000200220042006200820102012201420162018

RMIGraphic.Source:

USEnergyInformationAdministration

Theneedformoretransmissionwillbestbemetthroughefficientregionalplanningtoensurethatcost-

effectivesolutionsaredevelopedatscale.However,inrecentyears,therehasbeenadramaticshiftin

spendingbyutilitiesfromregionalprojects,whicharecentrallyplannedattheregionallevelbyfederallydesignatedregionalplanningentities,tolocalprojects,whichareplannedandbuiltbyasingleutilityto

meetneedswithinthatutility’sfootprint.vTheFederalEnergyRegulatoryCommission(FERC),forinstance,recognizedin2022thatthe“vastmajorityofinvestmentintransmissionfacilities”inthepastdecade“hasbeeninlocaltransmissionfacilities.”

10

vFormoredataonthisspendingshift,seethesection

ConsequencesoftheRegulatoryGap

.

MindtheRegulatoryGap:HowtoEnhanceLocalTransmissionOversight/11

Box1

DefiningLocalTransmissionProjects

Wedefinealocalprojectasaprojectplannedandbuiltbyasingleutilitytomeetneedswithinthatutility’sfootprint(i.e.,transmissionzone).Theseneedsmayincludereplacingaginginfrastructure(thisistypicallycalledanassetmanagementproject),interconnectingnewloads,enhancing

operationalflexibility,andensuringthatlocalreliabilitystandardsaremet.Localprojectsgoby

differentnamesindifferentgridregions;forexample,assetconditionprojectsinNewEngland

(ISONewEngland),self-approvedprojectsinCalifornia(CaliforniaIndependentSystemOperator),Supplementalprojectsinthemid-Atlantic(PJMInterconnection),andOtherprojectsintheMidwest(MidcontinentIndependentSystemOperator).Localprojectsdifferfromregionalprojects,which

areplannedattheregionallevelandmayspanmultipleutilities’footprints.Incontrasttoregionalprojects,localprojectsarefrequentlynotthoroughlyreviewedbyregionalplanningentities,asweexploreinthe

HowLocalProjectsAreCurrentlyConsideredinRegionalPlanning

section.

Oneofthekeyreasonsbehindthisshiftinspendingisalackofsufficientstate,regional,orfederaloversightoflocalprojects,whichwerefertoastheregulatorygap.Atthestatelevel,localprojectsareoften

legislativelyexemptedfromreviewbythepublicutilitycommissions(PUCs)thatregulateutilities.viStateregulatorsmaynotbecomeawareofprojectsuntilaftertheutilityhasalreadybegunadvancedplanningorconstruction,andprojectsarenottypicallytrackedduringtheconstructionprocessforpotentialcostoverruns.viiAttheregionallevel,regionaltransmissionplanningentitiesgenerallyclaimthatlocalprojectsarenotwithintheirpurview.Atthefederallevel,oversighthasbeenstreamlinedinwaysthatprovideverylimitedproject-levelreview.Asaresult,localtransmissionprojectsoftenreceivelittlescrutiny,offering

utilitiesalow-riskinvestmentopportunitycomparedtoregionalprojects,whicharerequiredtoundergosignificantlymoreoversight.viii

Thetimingforthisrecentshiftinspendingtolocalprojectscouldnotbeworse.AtatimewhentheUSgridneedstosignificantlyexpanditscapacitytopreparefortheparalleldemandsofloadgrowthandthecleanenergytransition,utilitiesarechoosingtoinvestprimarilyinlocalprojects,withnomechanismsinplace

toensurethattheseprojectsarebeingadequatelyreviewedbyplannersandregulators.Relyingheavilyonlocalprojectsratherthancoordinatingtheirdevelopmentwithregionalplanningneedsisaninefficientwaytomeetoverallgridneeds.Coordinatedregionalplanningcanensurethatlocalprojectsaresynergisticallydesignedalongsideregionalprojectstominimizecostsaswellaslanduseandenvironmentalimpacts.

AsFERCnotedwhenitestablishedregionaltransmissionplanning,“asingleentitymustcoordinatetheseactionstoensurealeastcostoutcomethatmaintainsorimprovesexistingreliabilitylevels.Intheabsenceofasingleentity...thereisadangerthatseparatetransmissioninvestmentswillworkatcrosspurposesandpossiblyevenhurtreliability.”

11

viManystatelegislatures,forinstance,haveexemptedprojectsthatarelowervoltageorthatconsistoflike-for-likeasset

replacements,whichlocalprojectsoftenare,fromreceivingastatecertificateofpublicconvenienceandnecessity.Formoreinformation,see

Exhibit5:State-LevelCPCNReviewAuthoritybyVoltage

.

viiForexample,GregPouloswiththeConsumerAdvocatesofPJMStatesrecentlydiscoveredthat31FirstEnergySupplementalprojectsarrivedatPJMwhentheywerealreadyinitiated,underconstruction,orcompleted,andfiledahotlinecomplaintatFERC(availableuponrequest).

viiiRegionalprojects,forinstance,mustbeselectedbyregionalplanningentitiestomeetcentrallyandindependentlyidentifiedregionalneedswithrobuststakeholderinput.Projectsareoftenselectedviaacompetitivebiddingprocess.Mostregional

projectsarealsorequiredtoreceivestate-leveloversightintheformofacertificateofpublicconvenienceandnecessityfromtherelevantPUC.Regionalprojectsarealsomonitoredbyregionalplanningentitiesthroughoutconstruction,includingforpotentialcostoverruns.

MindtheRegulatoryGap:HowtoEnhanceLocalTransmissionOversight/12

ManyAmericansareincreasinglystrugglingtopay

theirmonthlyelectricitybills,underscoringtheneedformoreproactive,least-costregionalplanning

ratherthandecentralizedlocalinvestments.RMI

foundthatin2023,“nearly70millionadults—oneineveryfour—reportedforgoingnecessaryexpenses,suchasforfoodormedicine,topaytheirenergy

bills.”

12

Furthermore,theshareofcustomerbills

representedbytransmissionanddistributioncostshasbeenincreasingsteadily,from10%in2005to

24%in2020(seeExhibit2).

13

Toachieveaffordabilitythroughthecleanenergytransition,itwillbe

essentialforplannersandregulatorstoensurethatratepayermoneyisspentefficiently.

Relyingheavilyon

localprojectsratherthancoordinating

theirdevelopment

withregionalplanningneedsisaninefficient

waytomeetoverallgridneeds.

Exhibit2PortionofResidentialBillSpendingonTransmissionand

Distribution

24%

20%

16%

12%

8%

4%

20062008201020122014201620182020

RMIGraphic.Source:

RMIUtilityTransitionHub

Tobetterunderstandtheimpactsoftheregulatorygapandidentifyreformsontheregional,federal,andstatelevelsthatcouldaddressit,weinterviewedstatePUCcommissionersandstaff,consumeradvocates,andlegalexpertsacrossageographicallydiversesetof18states.WealsoreviewedrelevantFERCfilings

andrelatedevidence.

14,ix

Therecommendationswepresentintheremaind