
Public Power Underground
Rich Glick on FERC Order 1920
Episode guests
Podcast summary created with Snipd AI
Quick takeaways
- Proactive regional planning and fair cost allocation enhance grid reliability and access to new generation resources.
- Order 1920 prioritizes long-term regional transmission projects to boost market competition, reliability, and liquidity.
- Comprehensive scenarios and out-of-sample testing are crucial for avoiding over-optimization in transmission planning under uncertainty.
Deep dives
Gridliance: More Than Just Wires
Gridliance, a transmission-only utility company operating in three regional transmission organizations, collaborates with electric cooperatives and municipal utilities to enhance renewable energy integration and grid reliability, resilience. Their focus is on transmission planning, investment, and policy to address evolving grid needs.
Rich Glick's Perspective on Transmission Planning
Rich Glick, previously the chair of the Federal Energy Regulatory Commission, emphasized the necessity of addressing barriers to transmission investment. He highlighted the significance of proactive regional planning and fair cost allocation to enhance grid reliability, access to new generation resources, and overall resilience against extreme weather.
Pamela Quinlan's Reflection on Order 1920
Pamela Quinlan, with experience in energy market regulation, appreciated the comprehensive approach of Order 1920 in considering transmission benefits and cost allocation. The order aims to prioritize planning for long-term regional transmission projects to enhance market competition, reliability, and liquidity while maintaining flexibility in cost allocation methods.
Planning Best Practices and Sensitivity Analysis
Establishing planning best practices involves subjective judgments and considering factors like scenario analysis and sensitivities. While the order lists essential modeling practices, there is room for improvement in terms of sensitivity analysis. The importance of comprehensive scenarios and out-of-sample testing is highlighted to avoid over-optimization under uncertainty.
Regional Collaboration and Cost Allocation
Collaboration between states plays a crucial role in allocating costs for transmission projects effectively. While the order provides guidelines, the execution and transparency in cost allocation remain pivotal. The involvement of states in discussions and decision-making processes can lead to fair and efficient cost-sharing mechanisms across different portfolios of projects, emphasizing the need for regional coordination and alignment in future planning.
Rich Glick initiated the proceedings that led to Order 1920 as Chair of FERC, he returns to Public Power Underground with experts Prof. Jacob Mays and Pamela Quinlan to reflect on its adoption
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Paul Dockery and Crystal Ball bring their curiosity to an in-depth discussion of transmission planning, transmission investment, and transmission policy with Rich Glick, Pamela Quinlan, and Prof. Jacob Mays.
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08:48 - Rich, What were you hoping for?
32:33 - Pamela, Does this do what you wanted?
- Building for the Future Through Electric Regional Transmission Planning and Cost Allocation
- High-Level Summary of FERC Order No. 1920 on Transmission Planning and Cost Allocation published by Troutman Pepper (h/t Adrienne Thompson)
- “Plan for the future with the best available information, select the best plan for consumers and allocate costs according to benefits" - Rob Gramlich on Volts
1:05:15 - Jacob, What is missing?
1:15:48 - Rich Glick’s Energy System Analogy: The energy transition is like the 1973 Mets.
1:17:55 - Jacob Mays’s Energy System Analogy: The 2005 Royals, never say it can’t get worse.
1:19:09 - Pamela Quinlan’s Energy System Analogy: The energy transition is like Game of Thrones.
BONUS: Ke Xin (Sherry) Zuo, a PhD candidate at Cornell University in the Mays Group, provided her reflections onTaylor Swift’s newest album, The Tortured Poets Department, and its application to the Power System. My (Paul’s) favorite: the brilliant insight that “I Can Do It With a Broken Heart” is actually about how the power grid has to be resilient during forced outages and extreme weather events.
About the guests:
Rich Glick is a Principal with GQ New Energy Strategies – a consulting firm he co-founded with Pamela Quinlan. Rich is a former Chair of Federal Energy Regulatory Commission (FERC). As Chair, Rich initiated several reforms to more efficiently and cost effectively accommodate the evolution of the electric grid. Before being appointed to FERC, Rich was General Counsel for the Democrats on the Senate Energy and Natural Resources Committee. He has worked for Iberdrola, PPM Energy and PacifiCorp and is also known in the West for his current work with the Committee on Regional Electric Power Cooperation (CREPC) Western States Transmission Initiative (WSTI) and CREPC Transmission Collaborative (TC). Rich’s prior appearance on Public Power Underground can be found below.
Pamela Quinlan co-founded GQ New Energy Strategies with Rich. She is an expert in energy market regulation and policy. She started at FERC as a Senior Energy Industry Analyst in the Office of Energy Market Regulation. In 2017 Quinlan went to work in then-commissioner Glick’s office as a Technical Advisor and was appointed Chief of Staff in January 2021. As Chief of Staff, she was responsible for developing and implementing the strategy behind the Commission’s policy initiatives. Before leaving FERC in 2023, Quinlan advised Chair Willie Phillips on Energy Markets and Resource Adequacy. She has also worked for Consolidated Edison (ConEd) and Standard and Poor’s.
Prof. Jacob Mays is an Assistant Professor in the School of Civil and Environmental Engineering at Cornell University where his research focuses on the design and analysis of electricity markets. Jacob holds an AB in chemistry and physics from Harvard University, a MEng in energy systems from the University of Wisconsin-Madison, and a PhD in industrial engineering and management sciences from Northwestern University. His seminal work (Paul is editorializing by describing it as seminal) on the sequential pricing of electricity was the subject of a stand-alone episode on Season 5 of Public Power Underground, and his collaborations with Jesse Jenkins, Farhad Billimoria, and Rahmat Poudineh have informed our listeners perspectives on electric markets under deep decarbonization. Jacob’s prior appearances on Public Power Underground can be found below.
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