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                    <title><![CDATA[Edison Electric Institute Newsroom]]></title>
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                    <pubDate>Wed, 03 Sep 2025 16:06:28 +0200</pubDate>
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                        <title><![CDATA[Edison Electric Institute Newsroom]]></title>
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                        <title>The Power of Impact: Leading the Clean Energy Transformation</title>
                        <link>https://www.electricperspectives.com/the-power-of-impact-leading-the-clean-energy-transformation/</link>
                        <guid>https://www.electricperspectives.com/the-power-of-impact-leading-the-clean-energy-transformation/</guid><pp:caseid>653182</pp:caseid><pp:summary><![CDATA[<p>EEI Vice Chair Calvin Butler, president and CEO of Exelon Corporation (Exelon), recently sat down with <i>Electric Perspectives</i> to share his views on keeping equity and affordability at the forefront of the clean energy transition.</p>]]></pp:summary><description><![CDATA[<img src="https://content.presspage.com/uploads/1920_?"><p><span style="color:#E6984C;"><i><strong>Electric Perspectives</strong></i><strong> (</strong><i><strong>EP</strong></i><strong>):</strong></span><strong> You have said that a company's success can be measured by the positive impact it has on customers and communities. How does that perspective guide you, not only as you lead Exelon, but also in your role leading the industry as EEI vice chair?</strong></p><p><span style="color:#E6984C;"><strong>Calvin Butler (CB):</strong></span> The opportunity to positively impact individuals and communities is one of the reasons I’m so grateful to serve as president and CEO of Exelon.&nbsp;</p><p>Exelon proudly serves some of our country’s largest and most diverse metropolitan areas—places such as Atlantic City, N.J.; Baltimore; Philadelphia; Washington, D.C.; Wilmington, Del.; and Chicago. These are cities rich with talent and full of hardworking, creative people who contribute so much to our society.</p><p>However, the fact remains that many of these communities experience higher rates of poverty and significantly higher rates of unemployment than the national average, due largely to racial and economic inequities.</p><p>Exelon’s primary focus is leading the clean energy transformation. While doing that, we are focused on helping our communities become cleaner, healthier, and more equitable places to live and to work. We believe it’s our responsibility to ensure a better future for all. This guides me every day in my work as CEO.</p><p>I’ll give you some examples of how we’re making a difference:</p><ul><li>We launched a $36-million Community Impact Capital Fund to support businesses that have challenges accessing capital—all of&nbsp;them located in under-resourced areas of our companies’ jurisdictions. The fund has invested about $10 million to date, providing estimated loans between $100,000 and $600,000 and equity investments of up to $2 million.</li><li>Each summer, we hold free, weeklong science, technology, engineering, and math (STEM) academies in the Baltimore, Chicago, Philadelphia, and Washington, D.C., metro areas. To date, the academies have served roughly 1,000 high school girls from underserved communities, providing exposure to STEM careers. This year, we’re expanding the program to include a STEM academy for boys to ensure we reach all of our young people.</li><li>We support historically black colleges and universities (HBCUs) through our Corporate Scholars program, which provides students $25,000 in need-based financial aid each year for four years. I’m proud to say we’ve contributed $15 million to HBCUs in our service areas to date.</li><li>We spent more than $3 billion with diversity-certified businesses in 2023, representing 39 percent of our total enterprise-wide spend. This has long been a priority for Exelon, and I am proud that EEI’s Business Diversity Program has been connecting America’s electric companies with diverse suppliers for more than four decades.</li></ul><p>Even in philanthropic giving, we are committed to uplifting underserved groups and communities. More than $40.2 million—90 percent—of the grants Exelon, our operating companies, and the Exelon Foundation issued in 2022 supported nonprofits, programs, and events specifically targeted to diverse populations.</p><p>In 2023, we invested more than $18 million in support of 90 different workforce development programs across the company to bring economic equity, empowerment, and employment opportunity to the communities that we serve.</p><p>We do this because it’s an inextricable part of who we are as a company. And, it makes good business sense. Our customers are key to our business growth and success. When they thrive, we thrive. Through our involvement with EEI, I know that all of our member companies are working hard on the energy transformation. The promise of a clean energy future must be fulfilled for all of our communities. No one can be left in the dark.</p><p>&nbsp;</p><h3><span style="color:#E6984C;"><span>“Our customers are key to our business growth and success. When they thrive, we thrive.”</span></span></h3><p><span style="color:#E6984C;"><i><strong>EP</strong></i><strong>:</strong></span><strong> Having assumed the role of Exelon president and CEO a little more than a year ago, what can you say about your experience leading one of the largest electric companies in the United States?</strong></p><p><span style="color:#E6984C;"><strong>CB:</strong></span> It has certainly been quite a year, and I mean that in the best way. If there is one word to describe my first year as CEO—taking over from a longtime leader, the late Chris Crane, just after we separated from our retail and generation business—it would be “commitment.”</p><p>I made a commitment to Exelon's 20,000 employees that I would keep them engaged in important and fulfilling work—and keep them safe while doing so. We have a commitment to our customers to keep the lights on and the natural gas flowing reliably and affordably.</p><p>I have a commitment to our Board and our shareholders to protect our balance sheet and to meet or exceed our company targets and goals. I am proud that ComEd and Pepco operated at record lows for outage frequency and duration last year. And, all three of our natural gas companies—Baltimore Gas and Electric (BGE), Delmarva Power, and PECO—remained in the top 10 percent for gas odor response.&nbsp;</p><p>I also made a commitment to myself that I would always remember that this position is not about me. It’s about what I can do for others. That’s a huge responsibility, but it’s also an honor. Since assuming this role, I’ve had the opportunity to share Exelon’s customer and community commitments with civic leaders in Philadelphia and nonprofit advocates in Chicago.</p><p>I met with governors from across the country as they gathered in Atlantic City for the National Governors Association’s annual conference, and I shared ideas on building economic equity with business leaders in Baltimore. I have had the privilege of talking&nbsp;with national media outlets about Exelon’s financial strength as a standalone transmission and delivery company; our unwavering&nbsp;commitment to diversity, equity, and inclusion (DEI); and how we plan to lead the clean energy transformation.</p><p>However, my best days have been spent meeting with my team across the company, hearing about employees’ priorities and sharing with them just how committed I am to their success.&nbsp;</p><p>As we entered 2024, going into my second year as CEO, we introduced a new theme to drive our work: The Power of Impact. I’m committed to realizing that power.</p><p><img class="image_resized" style="aspect-ratio:800/auto;width:800px;" src="https://content.presspage.com/uploads/3004/89d3f7ff-75b1-43fa-a067-3939542bdffb/20240305-eei-054.jpg?x=1722202861550" alt="20240305_EEI_054" width="800" height="auto"></p><h6><span style="color:#999999;">Butler speaks with Maryland Governor Wes Moore at EEI’s 2024 Spring Board of Directors and Chief Executives meeting.</span></h6><p><span style="color:#E6984C;"><i><strong>EP</strong></i><strong>:</strong></span><strong> In announcing your role as EEI vice chair, you emphasized your commitment to an equitable clean energy transition. What does that mean to you, and what can the industry do to ensure equity?</strong></p><p><span style="color:#E6984C;"><strong>CB:</strong></span> What drives me as Exelon’s CEO is putting more energy in equity and more equity in energy. I want the entire industry to join me in these efforts. As we build a clean energy future, we must do so in a way that benefits underserved and diverse communities—women, people of color, and other groups that traditionally have been left out.&nbsp;</p><p>What’s important to keep in mind is that equity isn’t the same thing as equality. Equity means providing each person the exact resources and opportunities needed to reach an equal outcome—even if those resources or opportunities look different from person-to-person, or&nbsp;from group-to-group.&nbsp;</p><p>Let me give you an example: The American Lung Association has released air quality reports for different communities. Over the years, they’ve found that the burden of air pollution is not evenly shared. Poor people, people who live in lower-income and racially diverse communities, and certain ethnic groups often face higher exposure to pollutants, suffer more from asthma, and even have a higher risk of premature death from polluted air.&nbsp;</p><p>The studies point to decades of residential segregation, noting that African Americans tend to live where there is greater exposure to air pollution. These same communities also are often disproportionately impacted by climate change. When we as an industry are focused&nbsp;on the clean energy transformation—even though we all want to get to the same outcome—we can’t treat those communities and groups the same as we would other communities that have been less impacted by historical burdens.&nbsp;</p><p>Exelon and its affiliates have been working on a range of equity-minded initiatives to accelerate the clean energy transition and improve air quality, including helping our regions secure federal grants. One area that we are focused on is the electrification of transportation and, specifically, school buses. If we replaced all of the diesel-powered school buses in the United States with electric school buses, we would reduce our annual emissions by 9 million metric tons. That’s the equivalent of taking 2 million cars off the road.</p><p>So far, nine school districts across Exelon’s service areas have received more than $40 million in grant funding to electrify more than 100 buses. Equity means serving those school districts and communities strategically to attain equal outcomes.</p><p>As we move toward greater electrification, we should ask ourselves: Are we ensuring that all of our communities are benefiting? Are we installing charging infrastructure in limited-income communities, or only in wealthy ones? Are job applicants from underserved and under-resourced communities being trained to be the electric vehicle mechanics we’ll need in the future? The environmental and resilience benefits of electrification are important. Issues of access and equity should be equally important to all of us.&nbsp;</p><p>When we tolerate disparities—when we overlook imbalances of resources and opportunities in the name of equality—we limit progress for individuals, communities, cities, and our industry. That impedes progress for all of us. Unfortunately, I have found that some people see equity as a zero-sum game. Prioritizing one underserved group may be seen as coming at the expense of another. That kind of thinking is detrimental to our collective progress.</p><p><span style="color:#E6984C;"><i><strong>EP</strong></i><strong>: </strong></span><strong>What is your view on the industry's role in balancing customer affordability with the critical investments that are needed to build next-generation infrastructure, to enhance energy grid security and resilience, and to integrate a growing fleet of renewable energy sources?</strong></p><p><span style="color:#E6984C;"><strong>CB:</strong></span> Exelon’s priority always is reliable and resilient service. Exelon serves customers in rural, urban, and coastal communities and across&nbsp;the economic spectrum, and each jurisdiction is different and has its own objectives set by policymakers.&nbsp;</p><p>Our focus on equity and affordability shows up in several ways:</p><ul><li>We work with our local regulatory bodies to develop rate-making processes that balance customer affordability with our need to make critical upgrades to the energy grid.</li><li>We identify smart investments, where a single project can address multiple priorities. We also need to remember that some investments, like transmission, can facilitate lower costs or enable renewable energy for a larger geographic area.</li><li>We prioritize programs that enable customer savings through home energy audits, lighting discounts, appliance recycling, home improvement rebates, equipment upgrade incentives, and innovative programs like smart thermostats and combined heat-and-power programs.</li><li>We connect customers with assistance. In 2023 alone, Exelon helped connect approximately 470,500 customers to $476.5 million in energy assistance—$186.4 million of which came from the Low Income Home Energy Assistance Program.&nbsp;</li></ul><p>Historically, each of Exelon’s companies has maintained customer bill averages that are lower than the national average. That is the result of prudent, customer-driven investment and disciplined cost management. We take an integrated approach to making the best use of quality existing assets, including gas pipes and electric wires, to minimize transition costs to our customers and total system costs over time. This helps to ensure that efforts to reduce carbon emissions do not limit energy access or affordability.&nbsp;</p><p>We also try to design initiatives, programs, and services to meet the needs of limited- and moderate-income households. Dedicated programs for limited-income energy efficiency and community solar—and electric transportation options, including school buses and public transportation—help ensure equitable access to clean energy resources.</p><p><img class="image_resized" style="aspect-ratio:800/auto;width:800px;" src="https://content.presspage.com/uploads/3004/1be332df-b9c5-4c84-b556-c79e195661fc/cgbatripkenstemcenterlaunch.jpg?x=1722207518368" alt="CGB at Ripken STEM Center Launch" width="800" height="auto"></p><h6><span style="color:#999999;">Butler visits a Baltimore-area middle school to advance science, technology, engineering, and math education opportunities.</span></h6><p><span style="color:#E6984C;"><i><strong>EP</strong></i><strong>:</strong></span><strong> Exelon and its subsidiaries span several different states and jurisdictions. Can you speak to the challenges and opportunities that electric companies may face when serving such a large and diverse service territory?</strong></p><p><span style="color:#E6984C;"><strong>CB:</strong></span> We serve 10.5 million customers in five states and Washington, D.C., through six local energy delivery companies. We serve some of the largest and most diverse metropolitan regions in the United States, but we also serve large swaths of rural America, customers in landlocked farming communities, and coastal areas in Delaware, Maryland, and New Jersey. We must have a multi-faceted and inclusive approach to everything we do and every decision that we make.&nbsp;</p><p>However, each jurisdiction has different priorities and timelines. Our governmental and regulatory affairs teams work very closely with stakeholders across local governments, commissions, and community groups to understand their needs and to align them with our business plans.</p><p>This can be challenging. What is tremendously helpful is the way we share learnings across our company. For example, Pepco, which serves customers in and around Washington, D.C., was our first local energy company to file a multi-year plan for gradual rate increases. This offers long-term certainty and benefits for our customers as we continue making infrastructure investments that support their needs.</p><p>BGE was able to learn from those efforts to adapt a plan for customers in central Maryland. We later went on to propose a multi-year plan in Illinois, and, although the initial regulatory response was not what we had hoped, the learnings from our other jurisdictions were key in helping our team at ComEd regroup and file a new plan, which we hope will meet the needs of our customers and the state’s clean energy and equity goals while preserving ComEd’s nation-leading reliability.</p><p>Across the country, our customers must be our focus. At Exelon, we are prioritizing our investments to deliver on customer needs and the goals of the communities and states that we serve. As an industry, we all must do our part, both individually and collaboratively.</p><p>With rising geopolitical concerns from the wars in Ukraine and the Middle East to rising tensions with China it is more important than ever that we continue to refine our existing security strategies while adding new tools to the toolbox.</p><p>&nbsp;</p><h3><span style="color:#E6984C;">“We must have a multi-faceted and inclusive approach to everything we do and every decision that we make.”</span></h3><p><span style="color:#E6984C;"><i><strong>EP</strong></i><strong>:</strong></span><strong> Service is a hallmark of leaders in this industry. And, it has been a hallmark of your career. How has service made a difference in shaping you as a person and a leader?</strong></p><p><span style="color:#E6984C;"><strong>CB:</strong></span> I want to make sure that my influence in this role helps others, whether that’s through serving on boards that are working to change the industry for the better—such as the U.S. Department of Energy’s (DOE’s) Argonne National Laboratories—or in community-focused organizations—such as the Cal Ripken, Sr. Foundation (Ripken Foundation), which is creating opportunities for young people in need to develop valuable life skills.</p><p>We recently announced the launch of a three-year educational initiative between the Exelon Foundation and the Ripken Foundation, aimed at developing the next generation of STEM experts and future energy leaders. Through a $3-million partnership, we will open 81 STEM centers—with 3D printers, robotics, and other advanced technologies—in schools across Maryland and Washington, D.C.&nbsp;</p><p>I hope that my passion for service is evident in the way I give members of my team the guidance and tools that they need to succeed—and then let them grow, develop, and ultimately thrive. I want them to be empowered to serve others, as well.</p><p>As a young professional, one of the people I looked to as a role model was Reginald F. Lewis, the first African American man to build a billion-dollar company. He was a giant in the business world. But, he also was incredibly generous and had a heart for service. He donated millions of dollars to nonprofits and educational institutions. His hard work continues to leave a legacy.</p><p>What’s gratifying for me is the thought that, when I retire—which will be a long time from now—I will be able to look back on the work we did at Exelon and the organizations I’ve contributed to and feel good about how we’ve changed communities and changed lives.</p><p>There are many other great examples of DEI programs and initiatives throughout the industry. What is clear is our shared commitment to developing the workforce that we need to deliver a resilient clean energy future.</p><p><img class="image_resized" style="aspect-ratio:800/auto;width:800px;" src="https://content.presspage.com/uploads/3004/c608f458-a01f-403b-b96b-2cd8af52802f/cgbleadershipmtg2023-3.jpg?x=1722209804340" alt="CGB Leadership Mtg 2023-3" width="800" height="auto"></p><h6><span style="color:#999999;"><span>"I want to make sure that my influence in this role helps others," Butler says.</span></span></h6><p><span style="color:#E6984C;"><i><strong>EP</strong></i><strong>: </strong></span><strong>Last year, you attended a cross-sector White House CEO meeting to discuss U.S. economic growth. How do you view our industry’s role in the U.S. economy, and what is your perspective on industry-government partnership?</strong></p><p><span style="color:#E6984C;"><strong>CB:</strong></span> It was a tremendous honor to represent Exelon at a meeting hosted by President Joe Biden last year. He invited a handful of company executives to discuss how we can help everyday Americans thrive in today’s economic environment. Going into the meeting, I didn’t know that the president was going to meet with us in the Oval Office rather than the Roosevelt Room. I was honored and humbled to sit alongside so many titans in the business world, such as Ken Chenault, the former CEO of American Express, who was one of the few African Americans in such a role at the time.</p><p>Having a seat at the table not only offered Exelon a platform for sharing our viewpoints—it also was a coveted opportunity to partner with government leaders at the highest level. The president devoted almost two hours to discussing the economic factors that impact all Americans and how the government and private sector can partner to develop solutions for building a stronger economy.&nbsp;</p><p>I appreciated the opportunity—and I recognized in the moment that I wasn’t in that room as just Calvin Butler. I was representing Exelon’s 20,000 employees and our more than 10 million customers. I was representing all of EEI’s member companies. That’s quite a privilege and a tremendous responsibility.</p><p>That meeting came after the passage of the Bipartisan Infrastructure Law and the Inflation Reduction Act, both of which created tremendous opportunities to accelerate infrastructure investments and hasten the clean energy transition. Those two bills incentivize jurisdictions to aggressively pursue climate goals. Last year, Exelon submitted funding and grant applications totaling nearly $700 million to DOE, which would support 10 critical grid infrastructure projects across the country and potentially create more than&nbsp;7,800 jobs.</p><p>The electric power industry supports more than 7 million jobs in communities across the United States. Our role in the economy is a major one, and we directly and indirectly support so many good-paying positions that require skills and technical expertise but may not require a four-year degree.</p><p><span style="color:#E6984C;"><i><span><strong>EP</strong></span></i><span><strong>:</strong></span></span><span><strong> </strong></span><strong>What does our industry need to do to foster the diverse and talented workforce that will be necessary as we pursue a resilient clean energy future?</strong></p><p><span style="color:#E6984C;"><strong>CB:</strong></span> We have a responsibility to help attract and retain a skilled, diverse workforce—not just here at Exelon, but across the industry. Our commitment to inclusion is shaped by who we are and who we serve. We use a comprehensive approach to drive a diverse, equitable, and inclusive culture within our communities by choosing to work with partners who share our core values—extending to our vendors, our consultants, and even our charitable grant recipients. It is through these efforts that we provide superior service to our customers.</p><p>When inclusion is woven into the mission, vision, and business practices of a company, it will be sustained over time. When it is treated as a nice-to-have initiative or program, it will not yield the results intended. As with many things in the world of business, culture change begins at the top. We prioritized inclusion as a core value at Exelon over the years. And, I can tell you, it has made a difference.</p><p>We require diverse slates of candidates in our recruiting process and diverse interview panels. We support well-funded employee resource groups, each led by a sponsor at the executive level. And, we pride ourselves in creating a work environment where all employees are encouraged and feel safe to bring their best professional selves to work. We measure these sorts of cultural impacts, like we would anything else that matters to us.</p><p>We also prioritize external workforce development. We invest in local communities to help build the skills necessary for the jobs today and for the energy workforce of the future. Since 2019, when we realigned our companywide workforce development strategy, our efforts have helped support the hiring of more than 1,800 people who live in communities served by Exelon into positions at our local energy companies or with our contractors. These are well-paying, family-sustaining positions.</p><p>Exelon is going all-in to bring about change, and the entire energy industry must join us. In an industry that offers so many opportunities to make a difference—through electric power generation, transmission and distribution, energy storage, energy efficiency, cybersecurity, data analytics, customer experience, fleet electrification, and so much more—our industry should, can, and must be a strategic disruptor to economic inequities in our communities.</p><p>As we enter a critical new era—where the type of energy that we generate and deliver, and the way we deliver it, is evolving at a rapid pace—we will see more change in the next 10 years than we have seen in the last 100 years. That makes this a truly exciting and transformational time to be in this industry. <span style="color:#E6984C;"><strong>EP</strong></span></p>]]></description><category><![CDATA[latest,butler,exelon,Q22024,featureq22024,feature]]></category>
            <pubDate>Mon, 29 Jul 2024 01:50:42 +0200</pubDate>
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                        <title>A Career of Resilience: Nina Plaushin on Regulatory Policy and the U.S. Transmission Landscape</title>
                        <link>https://www.electricperspectives.com/nina-plaushin-resilience-regulatory-policy/</link>
                        <guid>https://www.electricperspectives.com/nina-plaushin-resilience-regulatory-policy/</guid><pp:caseid>680291</pp:caseid><pp:summary><![CDATA[<p>Nina Plaushin, who retired in April as vice president of federal a airs and regulatory strategy at ITC Holdings Corp. (ITC), recently spoke with Electric Perspectives to share her thoughts on transmission planning and the lessons she has learned during her more than 25 years in energy policy.</p>]]></pp:summary><description><![CDATA[<img src="https://content.presspage.com/uploads/3004/e553899a-740f-46e7-8229-801988f1ba5d/1920_ninaplaushin.jpg?10000"><p><span style="color:#4D99E6;"><i><strong>Electric Perspectives</strong></i><strong> (</strong><i><strong>EP</strong></i><strong>):</strong></span><strong> What are some of your proudest accomplishments from your more than 25 years managing federal- and state-level government regulatory policy?</strong></p><p><span style="color:#4D99E6;"><strong>Nina Plaushin (NP):</strong></span> One of the most significant accomplishments of my career was helping to create a new business model. The concept of a standalone transmission company like ITC, which prioritizes investments in grid reliability, did not exist a few decades ago. ITC was launched in 2003, just a few years after regional transmission organizations (RTOs) started to be formed. Sustaining ITC for 20 years is a real credit to the whole company and our team.</p><p>I cannot emphasize enough how often we have intervened in legislation or regulation, because things were written as though they only applied to integrated electric companies and didn’t address our business model. We’ve led a lot of education over many years.</p><p><span style="color:#4D99E6;"><i><span><strong>EP</strong></span></i><span><strong>:</strong></span></span><strong> What are the biggest policy shifts you have seen during your career?</strong></p><p><span style="color:#4D99E6;"><span><strong>NP:</strong></span></span> What is fascinating about my career and this industry is that things have been dynamic, changing relatively quickly for what had been a fairly static industry for more than 100 years. I’ve been around long enough to see merchant generation come and go, and I have seen a big shift in the way people think about the grid. I was there for the epic battles in the 1990s when we formed the wholesale energy markets. In many parts of the country, we now have RTOs. More recently, we’ve been focusing on demand response and distributed generation. We’re looking at variable resources and how you can manage them on the grid from an operational perspective.</p><p>All of this really demonstrates that how we use the grid, and what our expectations are for the grid, have changed over a relatively short period of time, impacting everything from what kind of generation we’re considering to infrastructure location and how we manage assets.</p><p>On a more personal note, one of the big shifts I observed is the increase of women in leadership roles throughout the industry. I could go back 25 years to when I started, and there wasn’t a single woman CEO at the table. That’s certainly not the case anymore. I’m glad that I was a part of that, and I’ve worked to mentor women and promote women throughout my career. There has been a positive change in diversity, equity, and inclusion in the industry, generally.</p><img style="aspect-ratio:800/auto;" src="https://content.presspage.com/uploads/3004/bd57707c-882e-4d6c-8d30-757ee6f48ce5/image005.jpg?x=1733342059379" alt="image005" width="800" height="auto"><h6><span style="color:#999999;">In the late 1990s, Plaushin worked under John Sparkman, who was head of Pennsylvania Power & Light’s office in Washington, D.C. The company would become the PPL Corporation in 2000.</span></h6><p><span style="color:#4D99E6;"><i><span><strong>EP</strong></span></i><span><strong>:</strong></span></span><strong> What is your perspective on grid planning in the United States, and where do you see opportunity for reform?</strong></p><p><span style="color:#4D99E6;"><span><strong>NP:</strong></span></span> There are a lot of things to consider. When it takes 10 years to build a 345-kilovolt line, you can expect that in that time, things might shift a little under your feet. There are supply chain challenges. There are siting and permitting challenges. RTOs have short-and long-term planning horizons, some looking as far as 20 years out. You can’t just build transmission on a whim.</p><p>Load growth is another factor. The Federal Energy Regulatory Commission (FERC) revised its projections for demand growth over the next five years from 2.6 percent to 4.7 percent. T hat may not sound like a lot, but the industry has grown by an average of 0.5 percent gigawatts in each of the last three years. So, you can see the disconnect there.</p><p>Some people have a misconception that renewable resources are the only drivers for transmission investments. While they are a factor, there are a lot of things driving it. Since 2021, FERC has tracked $481 billion in commitments for industrial and manufacturing facilities. Data center growth is expected to bring $150 billion in investments between now and 2028. We see that as a big driver of transmission investment.</p><p>I do think FERC Order 2222, which deals with aggregation of distributed generation, will have a profound impact. Look at a diagram of a transmission system: “Here’s a generation plant. Here’s the transmission line. Here’s a distribution line. Here’s your load.” This is an oversimplification, but now distribution-level entities are beginning to feed energy back into the grid and selling on the wholesale market. New investment will be stimulated, because you can’t just drop a bunch of aggregated distributed generation into the system. You’ve got to be able to move it around. You’ve got to be able to physically aggregate it.</p><p>From a planning perspective, we used to be focused on building large-scale generation close to load. Now, we’re looking at resources that can be remote and are variable, and that creates a lot of new ways to think about—and a lot of challenges for—planning and operations.</p><p>When you have a lot of variable resources, you must balance them to ensure reliability. You can use natural gas peaking plants. You can use geographic balancing. And, you can have large-scale batteries push power onto the grid very quickly if a variable resource goes down. That’s something we don’t really have yet at the transmission level. There has been more focus on battery storage at the distribution level to firm up power being fed into the grid.</p><p>On the transmission side, if we could ever figure out an affordable battery option, that would fundamentally change the way the industry thinks about planning criteria. In five to seven years, this is going to be a big topic of conversation, because we will have so much more variable generation on the grid.</p><p>Partisan disagreements impact issues of importance to the industry. That has resulted in a lot of disagreements that are important to the industry. Do you want to plan for climate change? Do you price carbon? It’s very difficult when you lack consensus across party lines in Congress, especially when that same partisanship seeps into the regulatory agencies. With an election coming up, is everything going to change?</p><p>From an investment and planning perspective—whether it’s planning the grid or planning your generation or planning anything—you need to know what the rules of the road are going to be. And right now, it’s not always entirely clear.</p><p>&nbsp;</p><h3 style="margin-left:0px;"><span style="color:#4D99E6;"><span style="margin:0px;">“From a planning perspective, we used to be focused on building large-scale generation close to load. Now, we're looking at resources that can be remote and variable...”</span></span></h3><p><span style="color:#4D99E6;"><i><strong>EP</strong></i><strong>: </strong></span><strong>Reputable studies consistently suggest transmission capacity in the United States must increase significantly in the coming decades. What must be done to close that transmission gap effectively and efficiently?</strong></p><p><span style="color:#4D99E6;"><strong>NP:</strong></span> There seems to be consensus around the need to build more capacity and have more transmission and more investment. That may not sound like a huge thing, but it’s been a real labor of love over many years to make people recognize the benefits of transmission and understand the current and future needs.</p><p>Collaboration is key. We need to talk about interregional transmission—and not only because of variable resources and the potential for geographic balancing, which would allow for greater deployment of renewables. From a resilience perspective, the ability to move power between regions is critical.</p><p>The competitive processes created by FERC Order 1000 remain a distraction and have slowed the process. I think we’re now seeing more states enact legislation aimed at accelerating development of transmission projects, because getting through the current process is challenging. We have enough variables and challenges. We don’t need to have a whole additional process where a developer can place a super-low and unrealistic bid, be selected for a project, and end up collecting costs significantly over that bid.</p><p>And, doing this outside of regulatory oversight doesn’t protect customers. We are not seeing the major savings that we were supposed to see from Order 1000. What we’re seeing are very lengthy processes that are expensive, complex, and not good for customers.</p><p><span style="color:#4D99E6;"><i><strong>EP</strong></i><strong>: </strong></span><strong>What role does resilience play in the United States transmission landscape, particularly in the context of extreme weather events that have become more frequent across the country?</strong></p><p><span style="color:#4D99E6;"><strong>NP:</strong> </span>When a lot of people talk about grid resilience, they are talking about physical damage from storms and extreme weather events, including extremely hot and cold temperatures that stress the system.</p><p>This type of resilience is not a new issue, but the scope and scale are new. We have to be committed to resilience on a bigger scale. We can replace old equipment. We can upgrade line voltage or put in new conductor technologies. Vegetation management is also essential.</p><p>The industry has done a magnificent—and, at times, an underrecognized—job of improving storm restoration and enhancing the mutual assistance program. Convoys of trucks come from all over the country to wherever they’re needed. But, with these larger-scale events, when you have a storm that covers half of the United States and that impacts several states at once, it becomes more difficult to coordinate.</p><p>I think we need a regional approach to managing resilience. Iowa has a problem with flooding and ice. Florida has a problem with hurricanes. Kansas has a problem with tornadoes. Arizona has a heat problem. We have a rough idea of the environmental threats that are in each region, and that factors into how we think about resilience and how we plan for it.</p><p>The reality is the North American Electric Reliability Corporation (NERC) has reliability and cybersecurity standards, but not explicit resilience requirements. There are no FERC requirements. There’s liability associated with having an outage through NERC, and electric companies take all of this very seriously. But, we need regulator buy-in at the federal and state levels to help guide investment decisions.</p><p>It costs money to harden systems. Over time, the idea is that hardening saves money, because you don’t have to rebuild major facilities every time a storm rolls in. When you think about the economic ramifications of outages, you have to think about the loss of manufacturing activity, the impact on hospitals, the impact on communities and homes. Those aren’t always easily quantifiable costs, but outages are disruptive and can be very dangerous. If you know you’re going to have major storms every summer, it seems kind of silly and imprudent not to invest in hardening.</p><p>Supply chains are a big part of this discussion. If you can’t get things because they’re not manufactured in the United States, or if there are long wait times, that’s a problem. EEI has advanced the Spare Transformer Equipment Program, and maybe that’s a model that we need to think about. As EEI’s member companies know, waiting until you’ve had a big storm to worry about supply chain is the wrong way to do it.</p><p><span style="color:#4D99E6;"><i><span><strong>EP</strong></span></i><span><strong>:</strong></span></span><span><strong> </strong></span><strong>Thomas Edison once said, “Our greatest weakness lies in giving up. The most certain way to succeed always is to try one more time.” How has the concept of perseverance factored into your work at ITC?</strong></p><p><span style="color:#4D99E6;"><span><strong>NP:</strong></span></span><span> </span>Managing uncertainty in the industry is a type of perseverance in and of itself. The best example may be trying to get a large line built, especially one that crosses federal land. That’s a long-term endeavor that requires tenacity.</p><p>ITC tries to get local buy-in and support before we build lines. Even then, sometimes we get delayed by litigation. Especially with our big projects, like the Cardinal-Hickory Creek Transmission Line Project in the Midwest, which initially was approved 13 years ago, those take a long time. A big part of that is litigation, often by individual landowners and conservation groups.</p><p>During my career, there have been countless FERC chairs. I have worked with lawmakers in a lot of different sessions of Congress controlled by different parties. One of the things that makes the job interesting is that some of the issues don’t change all that much, fundamentally, but the players change.</p><p>The political climate changes. From a policy point of view, if something isn’t happening and you’re doing everything you can to educate and influence people, come November, you may find that the whole chess board was thrown up in the air and you’ll be starting all over again.</p><p>That is fun, but it also requires perseverance. You need to believe that what you’re doing today is going to have a benefit in the future. If you don’t like delayed gratification, don’t go into regulatory policy.</p><p>When you do get that gratification, it really is amazing. I did a lot of work before FERC Order 1000 came into existence, promoting some of the same things we have in place now. When that was finally issued, it was such a high. Although it is not what we initially envisioned, I was so proud of the process. Then, we got right back to it, because you need to do compliance for the next several years, and then there’s the next rulemaking. You have to take your victories where you can.</p><p>I have my own little saying: “I can wait to be proven right.” That’s not a great way to run an industry, but it is helpful from a legislative and regulatory perspective.</p><p>&nbsp;</p><h3><span style="color:#4D99E6;"><span style="margin:0px;">“You need to believe that what you're doing today is going to have a benefit in the future. If you don't like delayed gratification, don't go into regulatory policy.”</span></span></h3><p><span style="color:#4D99E6;"><i><span><strong>EP</strong></span></i><span><strong>:</strong></span></span><span><strong> </strong></span><strong>Edison also once said, “To have a great idea, have a lot of them.” What, or who, have been some of your greatest sources of ideas or inspiration or creativity throughout your career?</strong></p><p><span style="color:#4D99E6;"><span><strong>NP:</strong> </span></span>I get inspiration from the people around me. At the first job where I ever did regulatory work, at a company that was then called Pennsylvania Power & Light and is now PPL Corporation, I had a boss named John Sparkman. He really taught me a lot about being a number two in a Washington, D.C., office and about how to do regulatory work. It was a fantastic experience.</p><p>More recently, I learned so much from Linda Apsey, president and CEO of ITC. The opportunities that I had at this company were life-changing.</p><p>Part of my education was being a staffer on Capitol Hill, working for U.S. Representative Tom McMillen (D-Md.) who served on the U.S. House Energy and Commerce Committee when it was chaired by the late U.S. Representative John Dingell (D-Mich.). That was a political masterclass. The people in this industry who I have been blessed to work with—people like former U.S. Deputy Energy Secretary Linda Stuntz—are legends to me and have not only been mentors, but have had a profound impact on how I think about transmission, worklife balance, being a woman in this industry, and a lot of other things.</p><p>We have so many smart people throughout this industry, and there is nothing more satisfying than working with a group of smart people to solve problems. We don’t always agree on solutions. But, it is intellectually challenging work, and we all want good outcomes for our customers</p>]]></description><category><![CDATA[Lessons of Leadership,john larsen,featureq22024,ITC,ninaplaushin,Q22024,transmission,policy,latest,soergel]]></category>
            <pubDate>Wed, 01 May 2024 21:08:00 +0200</pubDate>
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                        <title>FEMA&#039;s Deanne Criswell: The Foundation of Resilience</title>
                        <link>https://www.electricperspectives.com/criswell-resilience-grid-security/</link>
                        <guid>https://www.electricperspectives.com/criswell-resilience-grid-security/</guid><pp:caseid>653427</pp:caseid><pp:summary><![CDATA[<p>The ability to maintain connectivity between electric companies and energy providers, emergency responders, and government partners is paramount to swift coordinated response and recovery efforts.</p>]]></pp:summary><description><![CDATA[<img src="https://content.presspage.com/uploads/3004/f65ec6ec-a594-46c0-bf9a-aec867eddd63/1920_power-lines-istock-1312572647.jpg?10000"><p>We have all experienced that surge of stress that happens when the power goes out. As you fumble through drawers to find your flashlight, questions start swirling in your head. How long will the outage last? Will the food in the refrigerator spoil? How will I charge my devices? It's in these moments, amid the feeling of inconvenience and unease, that we're starkly reminded of our reliance on electricity—not just for light, but for the safety and preservation of our daily lives.</p><p>2024 is the U.S. Federal Emergency Management Agency’s (FEMA’s) “Year of Resilience,” which, at its heart, is about encouraging everyone—from the average residential customer to companies that maintain critical energy infrastructure—to prepare for the threats of tomorrow, today. The electric power industry has a long history of prioritizing resilience and is a crucial partner in building and maintaining a prepared nation.</p><p>The uninterrupted flow of electricity is critical to our daily lives. Without it, communities across the country lose the ability to prepare for, respond to, and recover from disasters. Our nation’s energy grid powers hospitals, enables transportation systems, and ensures the safety and well-being of millions. When the power stays on, businesses flourish, critical services remain uninterrupted, and communities can focus on growing and thriving.</p><p>Resilience is not just about maintaining service and bouncing back from service disruptions. It’s also about fortifying our grid to withstand and adapt to ever-changing threats. Natural hazards—such as tornadoes, hurricanes, wildfires, and extreme heat—not only threaten lives and property but also place immense stress on the grid. These physical challenges are compounded by cyber threats that are becoming ever more prevalent in our society.</p><p>EEI’s members, who supply electricity to nearly 250 million Americans, are pivotal in fostering the resilience necessary to withstand both physical and cybersecurity threats to our nation’s infrastructure. This means strengthening and hardening our critical energy infrastructure by reinforcing power lines, securing substations, and adopting smart-grid technologies that can help predict and mitigate disruptions.</p><p>Just as we invest in physical infrastructure, it also is critical to prioritize cybersecurity measures that ensure the uninterrupted delivery of service to our communities. To this end, FEMA, in collaboration with the Cybersecurity and Infrastructure Security Agency (CISA), developed the “Planning Considerations for Cyber Incidents: Guidance for Emergency Managers” to help organizations prepare for a cyber incident and to support the development of a cyber-incident response plan. By fostering a culture of cybersecurity, we can collectively mitigate risk and enhance the overall resilience of our energy grid.&nbsp;</p><p>Despite our best planning efforts, incidents will occur. In these moments, the ability to maintain connectivity between electric companies and energy providers, emergency responders, and government partners is paramount to swift coordinated response and recovery efforts.</p><p>We encourage EEI’s members to enroll in the free Government Emergency Telecommunications Services (GETS) and Wireless Priority Service (WPS) programs run by CISA. These services ensure priority access to telecommunication networks during crises, facilitating seamless communication and coordination among stakeholders. By enrolling in GETS and WPS, EEI members can help to create a robust communication framework that can withstand the challenges posed by disasters and cyber threats. In times of crisis, prioritized access to communication networks can be a game-changer, enabling your organization to swiftly support response and recovery efforts.&nbsp;</p><p>As we approach the start of hurricane and wildfire season, industry-government collaboration is essential to ensuring the resilience of our critical energy infrastructure. Our collective commitment to resilience is not just a responsibility; it also is a vital investment in the reliability and security of the grid that powers our nation.</p><p>&nbsp;</p><img src="https://content.presspage.com/uploads/3004/6bf29fe5-8243-42c1-8524-b1c208ba53da/500_fema-headshot-deanne-criswell-photo1.jpg?x=1722265416199" alt="fema_headshot_deanne-criswell-photo (1)" width="200"><h6><span style="color:#999999;">Deanne Criswell is the 12th Administrator of the U.S. Federal Emergency Management Agency.</span></h6>]]></description><category><![CDATA[Security Matters,criswell,Q22024,featureq22024]]></category>
            <pubDate>Mon, 01 Jan 2024 17:13:00 +0100</pubDate>
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