To the Members of the U.S. House of Representatives:
The U.S. Chamber of Commerce writes in strong support of H.R. 3616, the “Reliable Power Act,” scheduled for a vote in the U.S. House of Representatives this week.
This legislation, authored by Representative Troy Balderson and cosponsored by twenty other members, and reported out through regular order by the House Committee on Energy and Commerce, would provide important protections to the reliability of our nation’s power grid during a time when electricity demand is growing at the fastest rate in decades. While projections vary, this generational demand growth is anticipated to continue into the 2030s, making it critical that the Federal Energy Regulatory Commission (FERC) has the authorities it needs now to ensure that government policies and regulations do not undermine the ability of our power grid to support the growth of AI and other industries critical to global competitiveness and national security.
The “Reliable Power Act” provides an objective foundation for additional FERC oversight through its requirement that the electric reliability organization (the North American Electric Reliability Organization, or NERC), conduct an annual long-term assessment of the ability of the power grid to supply sufficient electric energy necessary to maintain an adequate level of reliability. If NERC identifies a potential shortfall, this legislation would empower FERC to put agencies such as the Department of Energy and the Environmental Protection Agency, among others, on notice that the adequacy of electric generation is at risk. Perhaps most importantly, notified agencies would then be required to share such pending actions with FERC and consider and potentially integrate FERC’s feedback relating thereto. Absent an agency rectifying a pending action’s adverse impact on reliability, such action or rule would not be finalized.
Given the current environment of rapidly increasing electricity demand, and the critical role that affordable and reliable electricity plays in the economy and livelihoods of all Americans, the impact of relevant agency actions should not be left to chance. FERC is the only agency with the mission and expertise to safeguard the reliability of the power grid. Therefore, it is past time to empower FERC with the ability to review and improve other agencies’ actions that have the potential to undermine electric reliability. The “Reliable Power Act” closes this loophole.
The U.S. Chamber of Commerce commends Representative Balderson and the co-sponsors of H.R. 3616 for advancing this simple and pragmatic reform that would improve agency rulemaking to safeguard one of our nation’s most critical assets. The Chamber supports H.R. 3616 and urges a “yes” vote for its passage.
Sincerely,
Marty Durbin
Senior Vice President, Policy
President, Global Energy Institute
U.S. Chamber of Commerce
