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Part of A bipartisan bill has been approved in the House and now heads to the Senate, aiming to reduce strategic dependencies on China.

How could the push for FERC grid standards affect the North American Electric Reliability Corporation?

Likely What happens if… A possibility worth considering, not a forecast.

NERC may face strong operational changes as new FERC standards mandate grid connectivity If the Bipartisan American Affordability and Jobs Act passes, it would require the Federal Energy Regulatory Commission (FERC) to establish standards for interregional transmission planning. Because FERC has a mandatory regulatory hierarchy that requires the North American Electric Reliability Corporation (NERC) to adhere to its reliability standards, NERC would be compelled to update its operational rules. These updates would need to incorporate the new planning requirements designed to address the current US grid lag compared to China and Europe.

Reported by 1 independent outlet Written Oct 11
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How it reaches North American Electric Reliability Corporation

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The facts so far

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  • The Bipartisan American Affordability and Jobs Act would require FERC to establish standards for interregional transmission planning.hometownregister.com
  • China added about 250 gigawatts of interregional transmission capacity between 2014 and 2020.hometownregister.com
  • Europe added about 50 gigawatts of interregional transmission capacity between 2014 and 2020.hometownregister.com

Why it matters

The North American Electric Reliability Corporation (NERC) is a critical body responsible for maintaining the stability and reliability of the US power grid. Any mandate from FERC to overhaul its standards represents a significant operational shift, forcing NERC to adapt its rules to address systemic issues like the lack of interregional transmission projects, which currently number zero despite existing coordination requirements.

This legislative push reflects a broader geopolitical concern about strategic dependencies, specifically comparing US infrastructure development against the massive capacity additions made by China and Europe. The changes would aim to make the US grid more interconnected, potentially improving reliability and affordability nationwide.

What we don't know yet

  • What specific standards would FERC mandate for interregional transmission planning?
  • How quickly could NERC implement major changes to its operational rules?

What would change this answer

The Bipartisan American Affordability and Jobs Act passes the Senate and is signed into law.The mandate on FERC would become binding, forcing NERC to begin the process of updating its reliability standards.
FERC decides to rely primarily on the existing regional planning process rather than the new bill's pathways.The urgency and scope of the required changes for NERC might be reduced, as the new legislative backstop would not be in effect.

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The full eventBipartisan Bill Proposes FERC Standards for US Grid Interconnection Everything aboutNorth American Electric Reliability Corporation

Brind's analysis is written by AI from the reporting linked above and can be wrong. This explainer is a possibility worth considering, not a forecast: steps marked as Brind's reasoning are not stated in the reporting. It is not investment advice; do your own research.