Sec. 4. Non-wires alternatives
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Section 3 of the Federal Power Act ( 16 U.S.C. 796 ) is amended by adding at the end the following: The term non-wires alternative means an electricity grid investment or project that uses one or more nontraditional solutions, including distributed generation, energy storage, energy efficiency, demand response, microgrids, or grid software and controls, to defer or replace the need for specific equipment upgrades or new infrastructure, such as transmission or distribution lines or transformers, at a substation or circuit level. .
Section 202 of the Federal Power Act ( 16 U.S.C. 824a ) is amended by adding at the end the following: As soon as practicable after the date of enactment of this subsection, the Commission shall issue a final rule that— requires public utility transmission providers— to solicit non-wires alternatives in the development of regional transmission plans; and to identify opportunities for non-wires alternatives; requires Transmission Organizations to develop procedures to control or manage non-wires alternatives providing transmission services; and authorizes Transmission Organizations to allocate and recover costs of non-wires alternatives providing transmission services that are demonstrated to be a cost-effective alternative to an upgrade to, or the construction of new, transmission infrastructure in the same manner as the upgrade to, or construction of new, transmission infrastructure would have been allocated and recovered. .
Section 111(d) of the Public Utility Regulatory Policies Act of 1978 ( 16 U.S.C. 2621(d) ) (as amended by section 3(a)) is amended by adding at the end the following: To the extent a State regulatory authority has the authority to allow electric utilities to recover costs associated with electricity transmission and distribution projects, each State regulatory authority shall consider non-wires alternatives (as defined in section 3 of the Federal Power Act ( 16 U.S.C. 796 )) in instances in which an entity proposes transmission or distribution projects seeking cost-of-service rate recovery.
To reduce the costs to ratepayers associated with potential upgrades to transmission or distribution infrastructure, the cost of a non-wires alternative considered under subparagraph
(A)shall be recovered from ratepayers in the same manner as an upgrade to transmission or distribution infrastructure would have been. .
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