Key Takeaways From House Energy and Commerce Committee Hearing on Permitting Transmission for Reliable, Affordable Power
Featuring testimony from Southern Company's Clay Rikard.
Lawmakers on Capitol Hill put America’s transmission infrastructure front and center Wednesday during a House Energy & Commerce Committee hearing.
Policymakers and industry experts focused on permitting for, investing in, and upgrading one of the energy grid’s central pillars: the transmission network integral to moving electrons from power plants to homes, businesses, and government facilities across the country.
Southern Company Senior Vice President of System Planning Clay Rikard represented America’s investor-owned electric companies during the hearing.
Rikard stressed to lawmakers that “we are experiencing unprecedented load growth, and our electric utilities are moving with speed to provide power to our customers that is both reliable and affordable.”
Read on for highlights and key takeaways from Rikard and the other energy leaders testifying before the panel:
America’s Electric Companies are Protecting Customers Amid Data Center Buildouts
Our non-storm retail base rates are frozen through at least 2028 in Alabama and 2029 in Georgia, and Georgia Power has further committed to customer savings of at least $1.6 billion over a three-year period as a direct result of revenues that we are receiving from large customers. We are demonstrating that this extraordinary growth opportunity can have mutual benefits for all stakeholders today and into the future.
- Southern Company’s Clay Rikard
The most important electricity policy initiative in the country right now is at the state level: large load tariffs. ... Such tariffs can shield existing ratepayers from rate increases by charging the new customers for the costs of infrastructure development.
- Grid Strategies President Rob Gramlich
Transmission Is the Backbone of the Energy Grid
Transmission supports U.S. global economic competitiveness in an electronic era. China, Southeast Asia, and other leaders and competitors in technology recognize the importance of grid capacity. China built 80 times more high voltage transmission than the U.S. in the second half of the 2010s, and that is continuing in the 2020s.
- GridUnited CEO and Co-Founder Michael Skelly
Transmission is not only about building infrastructure. It is also about protecting affordability and respecting the historical and essential role of states in siting and permitting decisions.
- Northern California Power Agency General Manager Randy Howard
The Federal Government Has a Role to Play…
Earlier this year, Georgia Power and Alabama Power secured up to $26.5 billion in loan guarantees from the U.S. Department of Energy, which is the largest energy infrastructure commitment in the Department’s history. That financing is expected to reduce interest expenses by more than $300 million annually once fully drawn, translating into over $7 billion in estimated customer savings over the life of the loans. Importantly, our market structure allows us to directly pass these savings to customers.
– Southern Company’s Clay Rikard
State commissions are generally supportive of common-sense federal permitting reform efforts, so long as ‘permitting reform’ is defined as reform of federal processes that may impede needed critical energy infrastructure.
– National Association of Regulatory Utility Commissioners [NARUC] Executive Director Tony Clark
…But State- and Region-Specific Solutions Are Vital
If states are being asked to help hold the line on rising costs for average residential and commercial consumers, then state jurisdiction cannot be continually encroached upon. To be clear, different states will address these energy issues in different ways. California will approach these issues differently than my home state of North Dakota.
– NARUC Executive Director Tony Clark
Energy solutions—especially transmission and generation—are intensely regional. Our region benefits from state policies and state public service commissions that best understand the energy needs of our states. Every [integrated resource plan] we produce is reviewed, challenged, and approved or modified by our state commissions who hold us directly accountable to deliver the least-cost, most reliable solution for customers.
- Southern Company’s Clay Rikard
The Regulated Business Model Puts Customers First
The vertically integrated, state-regulated utility model enables the affordable and reliable energy future America needs. It is the most proven, most accountable, and most customer-focused path to protect families and small businesses in this era of significant growth. We have demonstrated it, and I urge Congress to protect what is working for customers in the Southeast.
- Southern Company’s Clay Rikard
Federal Permitting Reform Is a Must
The nation’s transmission system must evolve to meet growing demand and changing resource patterns, and permitting modernization is an important part of that effort. At the same time, the guiding objective should be reliable and affordable service for customers.
- Northern California Power Agency General Manager Randy Howard
Even if Congress and regulators do everything right on planning and technology, we will not build the grid at the pace required if the permitting process remains slow, duplicative, and litigation-prone. For large, multi-jurisdictional transmission lines, the timeline to reach a final federal decision can stretch many years—and even after agencies complete extensive analysis, a single lawsuit can reset the clock. The result is a process that is both too slow and too fragile for infrastructure that the economy depends on.
- GridUnited CEO and Co-Founder Michael Skelly