CONGRESS: SMART-GRID BILL PASSED BY SENATE AND HOUSE ENERGY & COMMERCE COMMITTEES

CONGRESS: SMART-GRID BILL PASSED BY SENATE AND HOUSE ENERGY & COMMERCE COMMITTEES
Tuesday, July 17, 2007
UPLC

Two smart-grid bills in the House and Senate are moving along with few minor changes. In the Senate, HR-6 passed by a vote of 65 to 27 on June 21, 2007 and Sections 255-257 of the bill provide for a "Smart-grid System Report", "Smart-grid Technology, Research, Development and Demonstration", and a "Smart-grid Interoperability Framework". In the House, the Energy and Commerce Committee on June 27, 2007, passed various bills including committee print #2 intended "to facilitate the transition to a smart electricity grid." The House version provides for the establishment of a "Grid Modernization Commission" tasked with overseeing the development of smart-grids around the country. The Commission must prepare a report that, among other things, considers the "ancillary benefits to other economic sectors or activities beyond the electricity sector, such as broadband over power line systems." The bill also provides for a "Smart Grid Investment Matching Grant Program" to provide reimbursement of one quarter of any qualifying smart-grid investment, and which sets aside $10 million for each year 2008-2012 for administration of the fund and $250 million for FY2008 and $500 million for each year FY2009-2012 for reimbursement of expenses. Finally, the House bill includes amendments to PURPA to provide incentives, such as rate decoupling, for utilities to invest in smart-grid technologies. Now that the smart-grid bill has passed out of Committee, it is expected to be held up until other more controversial provisions within the comprehensive energy legislation is taken up by the Committee in September. For more information about the bills, contact the UPLC Legal/Regulatory Department