Episode Summary
Executive Summary: Allison Clements argues FERC has made real progress on interconnection, transmission planning, and DER integration, but the U.S. grid still faces a generational mismatch between rapid energy-system change and slow regulation. She supports stronger planning, more competition, faster deployment, and better public participation—while warning that climate, cost, and reliability decisions are increasingly intertwined.
Main Topics: Grid as national backbone and regulatory lag (Priority: 5/5): Clements says the transmission system underpins the economy, security, resilience, and competitiveness, but existing infrastructure and regulation are outdated and too slow for the pace of change. Interconnection reform and queue backlogs (Priority: 5/5): FERC’s Order 2023 is presented as a necessary baseline fix for jammed queues, using cluster studies, readiness requirements, deadlines, and incentives—but not a full modernization of interconnection. Transmission planning, cost allocation, and competition (Priority: 5/5): Order 1920 is framed as an important step toward 20-year scenario-based regional planning, but unresolved issues remain around right-of-first-refusal, competition, and who should build lines. Inter-regional transmission and national-scale coordination (Priority: 4/5): Clements says there is effectively no inter-regional planning today, and that FERC likely has authority to require it, though congressional action could strengthen and clarify the mandate. Distributed energy resources and market integration (Priority: 4/5): She views Order 2222 as promising but incomplete, with DERs, demand response, and storage needing better coordination, transparency, and potentially more layered local market structures. Natural gas pipeline policy and climate impacts (Priority: 4/5): Clements argues FERC should consider greenhouse gas emissions and project need under the Natural Gas Act and NEPA, but that the issue has become more polarized and politically constrained. FERC process, public participation, and agency capacity (Priority: 3/5): She emphasizes the value of the Office of Public Participation, intervener funding, staff resources, and cross-agency coordination to make FERC more effective and legitimate.
Key Arguments: The grid is not just a climate issue; it is central to national security, resilience, customer costs, and industrial competitiveness. Order 2023 is useful because it makes queue rules more accountable, but it does not solve deeper structural problems like a process designed for a much older generation of power plants. Connect-and-manage style interconnection could speed deployment by allowing resources online while network upgrades are completed. Transmission should be planned forward 20 years using scenarios, because many lines will be valuable regardless of which specific generation comes online. Transmission often lowers system costs enough to pay for itself over time, so better planning is likely a customer win, not just a clean-energy subsidy. The unresolved issue on transmission is whether competition should be expanded or whether utilities should keep privileged access through right-of-first-refusal rules. Inter-regional planning is the next major frontier, and FERC likely has jurisdiction to require it, though Congress could reinforce that authority. DERs are technologically feasible and increasingly important, but market integration faces operational, coordination, and utility-incentive barriers. On gas pipelines, FERC should rigorously assess need and environmental impacts, including greenhouse gas emissions, rather than treating approvals as nearly automatic. FERC needs more staffing, funding, and convening power to keep pace with a fast-changing system and to engage the public more effectively.
Data Points: Generation waiting in interconnection queues: 2.6 terawatts - Clements cites the amount of generation waiting to connect to the grid, most of it wind, solar, and storage. Share of queued generation that is wind/solar/storage: 90%+ - She says more than 90% of the 2.6 TW waiting to interconnect is wind, solar, or storage. Interconnection study timing: 2 to 5 years per project - Describes the traditional serial study process as taking several years for each project. Regional transmission planning horizon: 20 years - Order 1920 requires long-term regional planning using scenario analysis. Transmission cost rule of thumb: About $1 million per mile - Used as a rough estimate in discussing transmission investment economics. Transmission payback period: 5 to 10 years - She cites LBNL analysis suggesting transmission investment can pay for itself over this period through bulk system savings. Potential renewable integration with existing system upgrades: Could double renewables integration - She says grid-enhancing technologies and reconductoring could roughly double renewable hosting capacity without major new transmission. Princeton load growth estimate: 2.4% to 3.8% per year - Used to illustrate expected demand growth over the next decade. Western Energy Imbalance Market savings: Over $5 billion - She cites cumulative customer savings since the market launched in 2014. Western Energy Imbalance Market launch year: 2014 - Context for the savings figure attributed to the Western EIM. Australia rooftop solar projection: 30% of national capacity by 2030 - Used as an example of rapid DER growth and integration. China grid investment plan: $700 billion to $800 billion - She references China’s planned grid spending over the next 5 to 10 years as a competitiveness benchmark.
Pivotal Quotes: "The transmission system, the electricity system, is the backbone of the U.S. economy." — Allison Clements: Her opening explanation for why grid regulation matters beyond climate policy. "What I like to say, which is let's let the markets decide what is going to get built." — Allison Clements: On transmission competition, right-of-first-refusal, and how projects should be selected. "There's a lot of money on the table when you're not participating in those markets and achieving those efficiencies, then we're in trouble." — Allison Clements: Her argument that regions without modern transmission planning and market structures are leaving customer savings behind.
Implications: Listeners should expect grid reform to keep accelerating, but unevenly. The big constraints are now institutional: planning, permitting, incentives, and public trust. Faster transmission, smarter interconnection, and better DER integration will shape competitiveness, reliability, and clean-energy deployment.