Resolution in Support of Electric Power Grid Modernization Principles

Resolution in Support of Electric Power Grid Modernization Principles

Summary

Several state legislatures and state public utility commissions are examining ways to modernize their electric power grids. These efforts to modernize electric power grids have raised significant issues relating to reliability, efficiency, privacy, and cybersecurity, among others, for policymakers and consumers to consider. To assist policymakers as they consider these issues, this resolution establishes seven foundational principles for electric power grid modernization.

Model Policy

WHEREAS, ALEC supports the modernization of the electric power grid to make it more efficient and offer benefits to consumers; and

WHEREAS, ALEC has previously adopted energy principles that express that reliable electricity supply depends in part upon significant improvements of the electric power grid; and

WHEREAS, State regulatory commissions, acting under authority granted by state legislatures, are responsible for ensuring that electric power grid modernization investments funded wholly or in part by retail ratepayer dollars are just and reasonable, and properly balance the needs of all consumers, as well as the needs of utilities; and

WHEREAS, State legislators and regulators are in position to consider unique local situations, including electric power market structures, infrastructure needs, consumer concerns, and policy priorities; and

WHEREAS, ALEC members have participated in dialogues with governmental and industry experts on electric power grid modernization, addressing important issues including reliability, cybersecurity, benefits and costs, consumer education and consumer protection, including consumer privacy;

THEREFORE BE IT RESOLVED, That the American Legislative Exchange Council while recognizing that electric power grid modernization will evolve over time and additional principles may emerge, endorses the following foundational principles relating to electric power grid modernization for the purpose of educating ALEC members and identifying issues of interest to State legislators, the federal government and others: 1) electric power grid modernization investments can provide benefits to consumers; 2) grid modernization deployment projects need to demonstrate that the benefits outweigh costs; 3) prudent costs must be recovered; 4) advanced meters are an important component of a modernized grid; 5) rules to govern access to data are necessary; 6) safeguarding the privacy of consumers’ data is critical; and 7) cyber and physical security of the modernized grid is essential.

Keyword Tags: 2013 Annual Meeting, Electricity, Energy Environment and Agriculture Task Force, Grid Modernization, Smart Meter