WASHINGTON, D.C. – This week, the Energy and Commerce Committee held a full-committee markup featuring Congressman Troy Balderson's (OH-12) latest effort to lower costs for Ohioans and strengthen the long-term reliability of America’s growing electric grid.
Approved by a vote of 47-0, the Load Forecasting Enhancement Act strengthens electric grid planning by giving states and utilities the tools they need to better project future power demand. Accurate load forecasting helps prevent the underbuilding of the electric infrastructure and generation needed to maintain grid reliability. Just as importantly, this bill also helps prevent the overbuilding of unnecessary electric infrastructure for speculative projects that can ultimately increase costs for ratepayers.
The Load Forecasting Enhancement Act would direct the Federal Energy Regulatory Commission (FERC) to convene regional joint boards with state public utility commissions to study and identify best practices for electric load forecasting. The legislation would also require FERC to report its findings and recommendations to Congress and require states to consider adopting improved forecasting procedures to support reliable, affordable electric service.
“Our nation is using more electricity each year, and for our grid to meet that growing demand, we need to know where infrastructure investments are needed to keep the lights on and keep America moving forward. By giving states and utilities the tools they need, we can ensure we expand and improve our grid as efficiently as possible—saving Ohio families money while boosting our nation's energy security,” said Congressman Troy Balderson (OH-12), Chairman of the House Energy Action Team (HEAT).
“As the electric grid faces increased demand for the first time in decades, it’s so important we have engagement across all levels of government to ensure consumers, utilities, grid operators and policy makers have the best and most accurate information,” said Jenifer French, Chair of the Public Utilities Commission of Ohio.
“Customers should not be forced to pay billions of dollars based on forecasts no one has seriously tested. Congressman Balderson’s bill takes an important step toward greater accuracy, transparency and accountability in load forecasting. Better forecasts will help protect reliability without allowing speculation to become a customer bill,” said Ryan Augsburger, President of the Ohio Manufacturers’ Association.
“Accurate forecasts for electricity demand create the foundation for the energy industry to efficiently invest and build new assets to meet future demand. Deficiencies in these forecasts expose electricity customers to significant risks. Under forecasting demand introduces the possibility of capacity shortfalls. While over forecasting leads to unnecessary investment, and in regions without competitive energy markets, those inefficient investments become a financial albatross around the necks of ratepayers. The Load Forecasting Enhancement Act is a thoughtful and constructive step forward, and EPSA is grateful for Congressman Balderson's continued leadership and unwavering focus on electric grid reliability and affordability,” said Todd Snitchler, President & CEO of the Electric Power Supply Association (EPSA).
“Meeting rising electricity demand requires smarter planning and grid management. Rep. Balderson's Load Forecasting Enhancement Act provides more support to states to improve load forecasting and plan grid investment accordingly. Modernizing how we forecast demand is a commonsense step toward a more reliable, affordable grid,” said Jeremy Harrell, CEO of ClearPath Action
