Newly proposed GRID Power Act would improve generator interconnection process

America’s grid operators would be permitted to fast-track power generation projects that improve the reliability of the nation’s electric grid under legislation proposed on Sept. 25 by U.S. Rep. Troy Balderson (R-OH).

“Our interconnection queue is buckling under its own weight,” Balderson said. “Transmission providers are tasked with ensuring we have enough electricity to keep the lights on, but the growing backlog of projects is adding years to an already time-consuming process.”

The congressman sponsored the Guaranteeing Reliability through the Interconnection of Dispatchable (GRID) Power Act, H.R. 9801, which would allow certain projects, at the request of the grid operator, to bypass the overwhelmed interconnection queue where proposed projects wait before grid operators begin conducting their feasibility and system impact studies.

In 2023, the median wait time grew to five years, delaying critical projects from being built and connected to the grid, according to a bill summary provided by his staff.

“This legislation would give grid operators the authority to identify and expedite the consideration of essential projects that will protect our grid’s reliability and provide the power needed to meet America’s growing demand,” said Balderson.

Specifically, H.R. 9801 would direct the Federal Energy Regulatory Commission (FERC) to develop rules that authorize grid operators — Regional Transmission Organizations (RTOs) and Independent System Operators (ISOs) — to fast-track these critical projects and allow them to bypass waiting in the interconnection queue.

Grid operators would still be required to conduct feasibility and system impact studies on the generation projects before signing an interconnection agreement, the summary says.

If enacted, H.R. 9801 also would require RTOs and ISOs to provide a process for public comment and stakeholder engagement before submitting proposals to FERC, and to provide regular reports on the state of grid reliability to FERC, states the summary.

FERC would be required to review and approve proposals within 60 days, potentially reducing the total time to approve these projects from years to just 12 months, the summary says, and would require FERC to start the rulemaking process for this mechanism within 90 days of the bill’s enactment and to finalize the rules within 180 days.

American Electric Power (AEP), the Electric Power Supply Association, the Ohio Oil and Gas Association, and The Ohio Manufacturers’ Association support H.R. 9801.

“Demand for electricity is growing at a pace our nation hasn’t seen in decades,” said AEP in a statement, noting that it has requests from large customers that would more than double the peak demand the utility currently serves on its system.

“Ensuring we are able to reliably serve new and existing customers will require us to rapidly expand our power generation fleet and grid capabilities,” said AEP, adding that it “supports Rep. Balderson’s efforts to improve and streamline the generator interconnection process.”

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