Contact: NARUC Communications, communications@naruc.org

WASHINGTON (November 13, 2023) — The National Association of Regulatory Utility Commissioners today released a new report, Resource Adequacy for State Utility Regulators: Current Practices and Emerging Reforms. The paper documents current practices and captures the evolving role of state utility regulators in maintaining reliability amid the energy transition. The report also describes reforms currently underway across the industry to further improve resource adequacy methods and introduce tools that are commensurate with the changing nature of the electric system.

The primer is divided into five parts:

• Part 1 provides a history of resource adequacy and why the purpose remains unchanged.
• Part 2 describes the various federal, regional, state and local regulatory authorities involved in resource adequacy processes aimed at maintaining a reliable electric system.
• Part 3 introduces foundational resource adequacy concepts.
• Part 4 explores potential reforms and regulatory considerations to address three main issues:
  • Resource Adequacy Reforms & Supplemental Approaches
  • Regulatory Considerations for Extreme Weather Events
  • The Interplay between State Resource Planning & Regional Reliability
• Part 5 describes resource adequacy approaches, stakeholder processes, regulatory involvement, emerging assessment reforms and risks from a regional perspective.

"Given recent resource adequacy-related events, utility regulators are continuing to examine new approaches to support a reliable grid in the transition to more distributed and carbon-free generation,” said Commissioner Ann Rendahl, of the Washington Utilities and Transportation Commission. “NARUC is well-positioned to provide resources and information-sharing to help commissions navigate these challenges.”

Utility regulators benefit from having the most accurate information and effective tools to interpret the evolving potential reliability challenges – both interconnection-wide and in various service territories. “This report offers a succinct yet thorough documentation of resource adequacy approaches and regulatory involvement in different regions, illuminating the variety of practices across the country and their prevalence,” said Danielle Sass Byrnett, senior director of the NARUC Center for Partnerships and Innovation.

The Resource Adequacy for State Utility Regulators: Current Practices and Emerging Reforms report was produced with support from the U.S. Department of Energy’s Office of Electricity.

Download and read the report at https://bit.ly/RAforRegulators.

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About NARUC

NARUC is a non-profit organization founded in 1889 whose members include the governmental agencies that are engaged in the regulation of utilities and carriers in the fifty states, the District of Columbia, Puerto Rico and the Virgin Islands. NARUC’s member agencies regulate telecommunications, energy, and water utilities. NARUC represents the interests of state public utility commissions before the three branches of the federal government.