For many Individuals, holding the lights on isn’t a difficulty. However Louisianans have some distinctive challenges. 

For households in Louisiana, payments are rising whereas the reliability of their electrical energy service isn’t enhancing. And though there aren’t foolproof options for addressing excessive climate occasions, better-planned and executed transmission-line improvement might assist the state tackle each price and reliability.

Nevertheless, the state’s largest utility, Entergy, continues to dam progress on each fronts. 

It is a long-standing problem, because the utility has hunted for years to guard an costly portfolio of era vegetation from competitors by not planning and constructing infrastructure that will yield advantages for Louisiana’s householders and companies. At a time when utilities are diversifying with low-cost wind and photo voltaic, Entergy lags far behind, producing lower than 1% of its power from renewable sources throughout Arkansas, Louisiana, Mississippi and Texas, its four-state footprint. For all it has invested on this technique, Entergy’s system nonetheless struggles with reliability. 

Greater than a decade in the past, whereas serving on the Federal Power Regulatory Fee (FERC), I voted to approve integration of Entergy providers from the 4 states, together with Louisiana, into the Midcontinent Impartial System Operator (MISO), a regional grid operator. 

I did so as a result of it was clear then, as it’s now, that regionally deliberate transmission (versus the transmission Entergy builds) would yield extra environment friendly strains that profit properties and companies.

Entergy itself had additionally proposed becoming a member of the regional MISO grid, because it was beneath investigation by the U.S. Division of Justice (DOJ) for attainable anticompetitive habits.  

Because of that investigation, the DOJ had argued that Entergy ought to unload its transmission property — a key motion to alleviate anticompetitive habits. By becoming a member of MISO and promoting its transmission property, the DOJ reasoned that Entergy can be incentivized to construct the infrastructure essential to ship lowest-cost energy to customers.

However greater than a decade later, the utility has didn’t fulfill these commitments. And New Orleanians proceed to pay the worth. Power payments within the metropolis have risen at their quickest tempo in practically 20 years. Since 2020, the tempo of enhance has been twice the nationwide common. 

As shopper payments have reached historic highs, Entergy’s shareholders are reaping the advantages. The corporate has paid out $3.2 billion in shareholder dividends since 2020.  

And so as to add insult to damage, Louisianans have seen a number of the longest and most frequent outages in recent times, because the state is more and more weak to excessive climate occasions. 

In the meantime, Entergy — which owns era, transmission, and distribution property throughout Louisiana, Arkansas, Mississippi, and Southeast Texas — just isn’t investing within the regional transmission strains that may ship the lowest-cost energy for customers and may meet energy demand throughout and after excessive climate occasions.

Regardless of becoming a member of MISO in 2013, no regional strains have been deliberate or constructed within the Southern subregion. Actually, Entergy has actively labored in opposition to such planning efforts.

The time wanted to finish annual transmission planning elevated by greater than fivefold instantly after Entergy joined MISO, in line with the Power and Coverage Institute. The utility even used paid actors at New Orleans Metropolis Council conferences in 2018 to faux group help for a pure gasoline plant. That gasoline plant, which was accepted, finally failed throughout a storm, with widespread outages revealing Entergy’s deal with fossil vegetation fairly than investing in a stronger grid and permitting competitors to enhance reliability.

Entergy, like all companies, makes selections based mostly on financial incentives. And there are clear disincentives for the utility to help the kind of regional transmission initiatives that will yield probably the most advantages for Louisiana companies and householders.  Entergy Arkansas and Entergy Louisiana would have misplaced a mixed $930 million in internet income in 2022 if the subsidiaries had constructed extra environment friendly transmission throughout the system, in line with a latest examine from the Nationwide Bureau of Financial Analysis. 

In the meantime, MISO’s northern subregion is poised to reap the advantages of proactive regional transmission planning. The grid operator has accepted 18 main transmission initiatives throughout the Midwest which can be anticipated to ship 2.6 instances extra advantages in comparison with their prices. Within the coming years, MISO will contemplate initiatives to enhance the system in its Southern area, which incorporates Louisiana, earlier than addressing the dearth of switch capability between the North and South. Regulators within the area should contemplate the long-term advantages these initiatives can ship to their constituents and name for collaborative planning.

The excellent news is {that a} latest federal rulemaking might assist guarantee MISO South higher plans and builds these essential strains. FERC’s regional transmission planning and price allocation rule, finalized final month, goals to deal with obstacles hindering the event of important grid initiatives. That rulemaking requires that transmission suppliers (1) conduct long-term regional transmission planning and (2) use outlined advantages when evaluating system wants and venture advantages. The rule might assist MISO South states construct initiatives that can ship long-term affordability and reliability advantages. 

Nevertheless, that rulemaking didn’t tackle interregional line improvement, which the Delta area desperately wants to assist guarantee low-cost, dependable energy. In comparison with 2020, the area will want a 414% enhance in interregional capability to help future era and meet demand by 2035, in line with the U.S. Division of Power. A part of this demand development stems from new industries throughout the Southeast, equivalent to knowledge facilities and manufacturing services. But the Delta, Southeast, and Florida have put in the fewest circuit-miles relative to regional load within the final decade. And as soon as once more, Entergy is obstructing progress on a possible interregional line that’s beneath improvement.

MISO South can’t proceed working as an island. Louisianans deserve inexpensive, dependable energy — beneath regular working situations in addition to throughout excessive climate occasions. 

It’s time for native and state regulators to take steps to make sure long-term regional grid planning is a precedence fairly than permitting Entergy to kick the can down the street with expensive short-term options which will show insufficient through the subsequent storm. 

Extra native era is barely a part of the reply. It’s time for better transmission buildout.

Louisiana should modernize. MISO South should regionalize. Failure to take action is a disservice to the residents and companies which have needed to foot the invoice for inaction for a lot too lengthy. It’s time for consumer-focused transmission funding.

John Norris served as a Commissioner on the Federal Power Regulatory Fee from 2010 to 2014 and as chair of the Iowa Utilities Board from 2005 to 2009. He has additionally served in a number of capacities on the U.S. Division of Agriculture.

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