HB1381: HB1381 Public utilities; require grid modernization assessments to be filed with integrated resources plans

26 LC 56 0586 House Bill 1381 By: Representatives Park of the 107th, Jones of the 25 th, Gisler of the 121st, Herring of the 145th, Camp of the 135th, and others A BILL TO BE ENTITLED AN ACT To amend Chapter 3A of Title 46 of the Official Code of Georgia Annotated, relating to1 integrated resource planning, so as to require grid modernization assessments to be filed with2 integrated resources plans; to require justification for new transmission construction instead3 of utilizing certain new technologies; to provide for the recovery of costs; to provide for the4 recovery of certain savings related to new technologies; to provide for definitions; to provide5 for related matters; to repeal conflicting laws; and for other purposes.6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:7 SECTION 1.8 Chapter 3A of Title 46 of the Official Code of Georgia Annotate d, relating to integrated9 resource planning, is amended in Code Section 46-3A-1, relating to definitions, as follows:10 "46-3A-1.11 As used in this chapter, the term:12 (1) 'Advanced reconductoring' means the replacement of traditi onal transmission13 conductors with high-performance conductors that provide higher capacity and lower line14 losses, specifically designed for installation on existing towers and rights of way.15 H. B. 1381 - 1 - 26 LC 56 0586 (1)(2) 'Capacity resource' means an electric plant, a long-term powe r purchase, or a16 demand-side capacity option.17 (2)(3) 'Construction' means clearing of land, excavation, or other s ubstantial activity18 leading to the operation of an electric plant other than planni ng, land surveying, land19 acquisition, subsurface exploration, design work, licensing or other regulatory activity,20 contracting for construction, or environmental protection measu res and activities21 associated therewith.22 (3)(4) 'Demand-side capacity option' means a program proposed by a u tility or the23 commission for the reduction of future electricity requirements the utility's Georgia retail24 customers would otherwise impose, including, but not limited to , conservation, load25 management, cogeneration, and renewable energy technologies.26 (4)(5) 'Electric plant' means any facility, or the portion of a faci lity, that produces27 electricity or that, at the time application for certification is made pursuant to this chapter,28 is intended to produce electricity for a utility's Georgia retail customers. 'Electric plant'29 includes the realty and ancillary facilities for the construction of the plant.30 (6) 'Grid-enhancing technologies' or 'GETs' means a suite of h ardware and software31 solutions that increase the capacity, efficiency, or reliabilit y of existing transmission32 lines, including, but not limited to, dynamic line ratings, advanced power flow control,33 and topology optimization.34 (5)(7) 'Long-term power purchase' means a purchase of electric capacity and energy for35 a period exceeding one year, the principal purpose of which is to supply the requirements36 of the Georgia retail customers of a utility.37 (6)(8) 'Plan' means an integrated resource plan which contains the u tility's electric38 demand and energy forecast for at least a 20 year period, contains the utility's program39 for meeting the requirements shown in its forecast in an economical and reliable manner,40 contains the utility's analysis of all capacity resource options, including both demand-side41 and supply-side options, and sets forth the utility's assumptio ns and conclusions with42 H. B. 1381 - 2 - 26 LC 56 0586 respect to the effect of each capacity resource option on the future cost and reliability of43 electric service. The plan shall also:44 (A) Contain the size and type of facilities which are expected to be owned or operated45 in whole or in part by such utility and the construction of whi ch is expected to46 commence during the ensuing ten years or such longer period as the commission deems47 necessary and shall identify all existing facilities intended to be removed from service48 during such period or upon completion of such construction;49 (B) Contain practical alternatives to the fuel type and method of generation of the50 proposed electric generating facilities and set forth in detail the reasons for selecting the51 fuel type and method of generation;52 (C) Contain a statement of the estimated impact of proposed and alternative generating53 plants on the environment and the means by which potential adve rse impacts will be54 avoided or minimized;55 (D) Indicate in detail the projected demand for electric energy for a 20 year period and56 the basis for determining the projected demand;57 (E) Describe the utility's relationship to other utilities in regional associations, power58 pools, and networks;59 (F) Identify and describe all major research projects and programs which will continue60 or commence in the succeeding three years and set forth the rea sons for selecting61 specific areas of research;62 (G) Identify and describe existing and planned programs and po licies to discourage63 inefficient and excessive power use; and64 (H) Provide any other information as may be required by the commission.65 (7)(9) 'Supply-side capacity option' means an electric plant, a long-term power purchase,66 or any other source of additional energy.67 (8)(10) 'Utility' means any electric supplier whose rates are fixed by the commission."68 H. B. 1381 - 3 - 26 LC 56 0586 SECTION 2.69 Said chapter is further amended by revising Code Section 46-3A- 2, relating to filing and70 approval of an integrated resource plan, by adding a new subsection to read as follows:71 "(d)(1) Each integrated resource plan filed after July 1, 2026, shall include a dedicated72 grid modernization assessment that identifies all transmission corridors currently73 experiencing, or forecast to experience, congestion within the succeeding ten years.74 (2) For each proposed construction of new a transmission line or significant expansion75 of an existing line identified in the grid modernization assess ment, the utility must file76 a technical and economic comparison demonstrating that grid-enhancing technologies or77 advanced reconductoring were evaluated as alternatives, and jus tify the need for such78 construction."79 SECTION 3.80 Said chapter is further amended by revising Code Section 46-3A-4, relating to issuance of81 a certificate of public convenience and necessity, and applicat ion to include plan and82 cost-benefit analysis, by adding a new subsection to read as follows:83 "(d) The commission shall not issue a certificate pursuant to t his Code section for the84 construction of a new high voltage transmission line unless the applicant demonstrates that85 the immediate capacity need cannot be met by the deployment of grid-enhancing86 technologies or advanced reconductoring on existing rights of way."87 SECTION 4.88 Said chapter is further amended by revising Code Section 46-3A-7, relating to construction89 costs as part of rate base, review of construction work in prog ress, verification of90 expenditures, and recovery of costs of canceled construction, by adding a new subsection to91 read as follows:92 H. B. 1381 - 4 - 26 LC 56 0586 "(e)(1) All capital expenditures for grid-enhancing technologie s and advanced93 reconductoring for which a certificate was obtained shall be eligible for full cost recovery94 through the utility's base rate.95 (2) The commission is authorized to allow a utility to retain 25 percent of the verified96 annual congestion cost savings achieved through the deployment of GETs, with the97 remaining 75 percent passed through to ratepayers as a direct c redit on the fuel cost98 adjustment or similar mechanism."99 SECTION 5.100 All laws and parts of laws in conflict with this Act are repealed.101 H. B. 1381 - 5 -