Think tank reminds utility sector to involve the public early and often in grid revamp

Published on February 16, 2023 by Hil Anderson

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Building out the nation’s electrical grid will require a high level of community outreach to help the close-quarter work in established communities go as smoothly as possible, a panel urged attendees at this week’s National Association of Regulatory Utility Commissioners (NARUC) Winter Policy Summit.

A briefing hosted by the non-profit think tank IdeateLABS on the sidelines of the conference reminded utility companies about the power of public opinion and to engage their customers early and often as they move forward.

“No amount of outreach is too much,” said panelist Ben Hueso, a former California state senator who represented the working-class communities of southern San Diego.

Hueso and his fellow panelists from the industry agreed the concept of clean energy would not sell itself, and progress on the grid could be permanently undone if public opinion soured in the face of higher rates and new construction providing little immediate benefit to the community.

Hueso offered a cautionary tale for utilities in the installation of solar panels on the White House by President Jimmy Carter during the energy crisis of the 1970s; the panels came down after Ronald Reagan and the Republicans took over the presidency.

“Initially, the conversation had been about energy independence … and it seemed like a good formula for America’s energy future, but somehow it became a political debate between one group and another.”

And if the issue of grid upgrades becomes political in the testy current environment, opponents could find support among voters who lose confidence in their utilities giving them a straight count at the same time their bills are ratcheting higher.

“Retrofitting our entire electricity system is going to be very expensive,” said Hueso. “If the cost is too high, then our plans for cleaning our grid are going to be completely destroyed.”

Any festering resentment can also spill into the regulatory arena where moves to raise rates even further could face increasingly difficult sledding.

Washington, D.C., the host city for the NARUC conference, has found itself in such a predicament in its ongoing grid expansion program, which includes a major new transmission line being pushed through the center of the bustling city.

“This is a billion dollars in new infrastructure, and we also remain circumspect about raising customer rates,” said Emile C. Thompson, chairman of the Public Service Commission (PSC) of the District of Columbia.

Jeremy Vanderloo, vice president of Regulatory Affairs for Entergy Mississippi, agreed, adding that while grid expansion was vital and time was of the essence, regulators existed to watch the public’s collective back and a blank check was simply too much to ask for.

“I can’t take something to the regulators without the customers being at the center,” Vanderloo said.