King to Energy Secretary: U.S. Should Motivate Utilities to Adopt Cost-Saving Grid Enhancing Technologies

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WASHINGTON, D.C.- U.S. Senator Angus King encouraged the Department of Energy (DOE) to incentivize utility companies to invest in newer, more cost-effective energy technologies rather than costly construction as the nation prepares to modernize its energy grid for a clean power future. In a hearing of the Senate Energy and Natural Resources (ENR) Committee, King pressed DOE Secretary Jennifer Granholm about the cost-benefits of grid enhancing technologies - which maximize the transmission capability of existing infrastructure - compared to new transmission projects.

Senator King also took the opportunity to highlight the differences of build out costs compared to utilization costs.

"Transmission, in many states now, is more expensive than generation. And it's going to get more so because of the enormous buildout of the grid that is necessary for the electrification of the country. You have mentioned several times grid enhancement technologies, reconductoring, which I am all in favor of, very much so, the problem is the incentives in the industry are toward building ... So, we need to have incentives for doing the cheaper things first or, perhaps, even mandates that say you have a demonstrate you have done the grid enhancing technologies, the dynamic line rating, reconductoring, before you build the big new transmission line, which may be obviated by the grid enhancing technologies. Your thoughts?" King asked.

Secretary Granholm replied, "Yes, it requires a different mindset, perhaps, a slightly different business model on the part of the utilities who are, you know, understandably conservative. However, you are seeing a lot of utilities-"

King responded, "But their financial incentive is to build."

"Right, because they get a return on investment that corresponds … I encourage you to take a look at the liftoff report that we issued one hour ago on innovative grid technologies, because if you just look at what the estimates are of the necessary expansion of the grid between now and 2033, which is, according to NARUC, it's about 91 gigawatts. The grid-enhancing technologies and reconductoring can achieve between 20 and 100 gigawatts, and they are at 5% of what the cost is of buildout," Secretary Granholm said.

"I hope you will communicate with your friends at FERC because they just issued an order that did not require the utilities to even study these grid enhancing technologies before embarking on a transmission project. I disagree with that decision, I don't understand it. But I think that is something they need to continue to press on because it is not going to happen by us talking about it. There have to be incentives and it may be shared savings to the utilities, if they use this lower cost technology," King concluded.

As a member of the Senate Energy and Natural Resources Committee, Senator King has repeatedly emphasized the importance of permitting reform to unlocking the promise of a clean energy future. In addition to recent discussions with FERC, he has stressed the importance of streamlining and speeding project timelines while maintaining environmental standards to the Secretaries of Energy and Interior.

Senator King - who proudly voted for the Inflation Reduction Act and its clean energy framework - also repeatedly stressed the importance of improving the nation's grid.

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