FERC Conference Highlights Resource Adequacy Challenges and Opportunities for the Electric Grid

FERC recently hosted a two-day technical conference focused on resource adequacy, addressing vital topics such as generation, interconnection, transmission, and market reforms. Several speakers highlighted the necessity of strengthening and expanding the transmission system to ensure reliable and cost-effective electricity supply, particularly in light of the significant electric load growth driven by the expansion of data centers and widespread electrification across the United States. Below are some key takeaways from the over 10 hours of discussions regarding the challenges facing our electric grid and the opportunities that lie ahead.

### Load Growth and Generation

“Large load growth is a challenge, but it’s also an incredible opportunity for us,” stated FERC Commissioner Lindsay S. See on the first day of the conference. She expressed her belief that this situation, while challenging, is beneficial for the country’s economic development and stressed the importance of building out the grid to meet these demands.

Commissioner See emphasized the need for a diverse grid to support current and future load growth. This includes adopting an “all-of-the-above” approach to generation interconnection and utilizing tools and transmission systems to ensure power is delivered where it is needed. “We want to ensure that the systems we have in place are actually moving us in that direction and at the right time,” she insisted.

On the second day, Carrie Zalewski, Vice President of Transmission and Electricity Markets at American Clean Power, noted, “We need diversity of resources,” explaining that different energy sources have unique vulnerabilities. She pointed out that while the sun doesn’t always shine or the wind blow, the varied weaknesses of different resources can complement one another to create a more resilient grid.

Michelle Bloodworth of America’s Power took the opportunity to advocate for maintaining a backbone of fossil fuel generation, referencing recent blackouts in the Iberian Peninsula and stressing the importance of ensuring sufficient transmission and generation capacity. She urged FERC to take a leadership role in addressing resource adequacy until the existing capacity shortfall is resolved.

Utilities across the Midwest face mounting challenges, including extreme weather, aging infrastructure, and the need to integrate renewable energy while maintaining grid reliability. State decarbonization laws complicate the process of bringing new power generation online. As utilities transition from fossil fuels to cleaner alternatives, they also contend with supply chain issues, labor shortages, and cybersecurity risks.

A new regional event, DTECH Midwest, is set to address these specific challenges, offering tailored content for municipal and cooperative utilities. Registration is now open for the event, taking place from July 14-16, 2025, in Minneapolis, MN.

### Maximizing Existing Infrastructure

Given the urgency to meet rising demand, properly utilizing power—regardless of its source—has become crucial. It is not feasible to drastically expand the U.S. transmission grid in a short time frame, so leveraging modern tools to optimize existing lines is essential.

Jacob Finkel from the Pennsylvania Governor’s Office emphasized the need for greater utilization of the variety of tools available to PJM Interconnection, including surplus interconnection services, virtual power plants (VPPs), and grid-enhancing technologies (GETs). He noted that these can significantly increase the efficiency of the current transmission system.

The American Council on Renewable Energy (ACORE) expressed strong support for deploying advanced transmission technologies highlighted in FERC’s technical conference. Such technologies can enhance grid capacity in existing rights-of-way while new regional and interregional transmission lines are developed.

FERC Commissioner David Rosner echoed sentiments regarding resource adequacy, urging a focus not just on megawatts but also on creating an energy system capable of efficiently moving power from production sites to demand centers.

### Transmission and a Smarter Grid

As Wendy Stark, executive vice president-utilities and chief legal officer of PPL Corporation, reminded attendees, investment in infrastructure is critical. “Transmission is an important part of this,” she noted, reinforcing that sufficient transmission is as vital as generation.

Andrew Meyer of Ameren Missouri highlighted the need for policymakers and regulators to ensure the delivery of energy in real-time, emphasizing the importance of a robust transmission system, especially during significant transitions in generation and load.

Several speakers, including Doug Scott, Chair of the Illinois Commerce Commission, emphasized the necessity of expanding interregional transmission to alleviate congestion and improve grid efficiency.

James B. Robb, President and CEO of NERC, called for grid design modernization to address contemporary fuel supply limitations and extreme weather risks. He stressed the importance of understanding these risks and improving capacity accreditation and interregional transfer capabilities.

### Looking Ahead

Elliot Mainzer, President and CEO of the California Independent System Operator (CAISO), discussed the future of transmission planning, advocating for proactive measures to guide interconnection queuing. He shared that CAISO has added approximately 25 gigawatts of new generation capacity since 2020 and approved nearly $20 billion in new transmission investments.

Michelle Gardner, Executive Director of Regulatory Affairs for NextEra Energy Resources, urged for swift action in long-term transmission planning to unlock new energy resources in the region.

Elise Caplan, ACORE’s VP of Regulatory Affairs, summarized key conference discussions, emphasizing the need to adequately value a wide range of resources and the crucial role of transmission and advanced technologies in enhancing grid reliability.

However, ACORE also noted that discussions often overlooked the growing importance of energy storage, which has expanded significantly and improved reliability. Caplan recognized Carrie Zalewski for highlighting storage’s critical role, referring to it as a “Swiss army knife” for its flexibility and importance in maintaining grid stability.

In conclusion, the FERC conference underscored the urgent need for collaborative efforts in addressing resource adequacy challenges and optimizing the electric grid to ensure a reliable and sustainable energy future.