Advanced Energy Perspectives

Less than a week after the legislature concluded its 2022 session, California was back in the news for record-breaking heat waves and emergency energy conservation efforts that staved off power outages. This combination of extreme weather and grid strain underscored the central theme driving energy legislation at the State Capitol this year: reliability. Throughout budget and bill deliberations, policymakers grappled with the core question of how to keep the lights on under increasingly challenging conditions without compromising California’s world-renowned climate leadership or spiking consumer energy bills. What came out of the session that ended August 31 was lawmakers’ current answer, but the question is not going away.

Labor Day 2022 is like none other for the advanced energy industry. It arrives after two years of COVID-related retrenchment and recovery and nearly a year of policy upheaval at the federal level, with threats of solar trade restrictions and climate and clean energy legislation seemingly stalled. Then, last month, came the Inflation Reduction Act which, when combined with the smaller but, in retrospect, complementary Infrastructure Investment and Jobs Act a year earlier, provides $444 billion for investment in advanced energy. That direct investment of federal dollars will, we estimate, attract $1.2 trillion in private investment, for a total boost of $2.8 trillion for the U.S. economy. And that means one more big thing: jobs.

On Friday, August 5, Virginia’s State Corporation Commission (SCC) provided its stamp of approval for construction of the Costal Virginia Offshore Wind (CVOW) project – a 2.6 GW wind farm located 27 miles off Virginia Beach. For Virginia, the project is cause for excitement, for its jobs and cost savings benefits, as well as its key role in the Commonwealth’s clean energy future. But as it will also be the first offshore wind farm built and owned by a regulated utility, and carrying a big price tag, it calls for particular scrutiny. And in SCC’s review and final order, that’s what it got.

Despite contentious political circumstances in legislatures across the country, fiscally responsible legislation to support advanced energy technologies can draw bipartisan support. An example of this came in Arizona this summer, where both sides of the aisle came together to pass smart legislation that gives schools and students access to cleaner transportation. The Arizona bill also shows another way to open up opportunities for electric school buses in states of every political stripe.

With 2022 more than halfway through, AEE returns with the latest edition of its biennial top utility regulatory trends roundup. Utility regulatory commissions across the country have been off to a busy start, navigating supply chain hurdles, inflationary pressures, extreme weather events, and the accelerated adoption of clean energy technologies. With PowerSuite, AEE’s policy tracking platform, we cut through the noise to provide insights on the trends shaping utility regulation this year and in years to come.

Note: some links in this post reference PUC filings and other documents in AEE's software platform, PowerSuite. Click here and sign up for a free trial. PowerSuite – policy tracking by policy professionals.