Upgrading and modernizing the U.S. electrical grids continues to be a hot issue both for the amount of work being done and concerns that infrastructure isn’t being upgrade quickly enough. The National Electrical Manufacturers Association (NEMA), Rosslyn, Va., is out with a new report that looks at experiences in grid modernization from the utility and customer points of view.
Titled “Reviewing the Business Case and Cost Recovery for Grid Modernization Investments” (NEMA GRID MOD R1-2018), the report reviews experience with grid modernization investments to date, summarizes how grid modernization has benefitted customers and utilities, and documents cost recovery mechanisms and business cases related to these investments.
“Grid modernization efforts are taking place in many states across the country, each with its own priorities, such as improved resilience,” said Brian Marchionini, NEMA staff lead for the Grid Modernization Strategic Initiative. “Most utilities are willing to undertake grid modernization projects provided they achieve timely cost recovery. An increasing number of regulators are willing to consider alternative regulatory models to enable these projects and broader utility innovation.”
During the past decade, several utilities and commissions across the U.S. have made investments in new grid technologies, tools, and techniques to modernize the electric grid. This document provides opportunities for utilities and their regulators who are contemplating similar investments in learning from the experience of early adopters.
The report is available in hard copy and as an electronic download on the NEMA website.