The rule, under development for two years, is aimed at boosting the nation’s aging power grid to meet surging demand fueled by huge data centers, electrification of vehicles and buildings, artificial intelligence and other uses.
The increased demand comes as coal-fired power plants continue to be retired amid competition from natural gas, and other energy sources face increasingly strict federal pollution rules, setting up what experts say could be a crisis for electric reliability.
The grid is also being tested by more frequent service disruptions during extreme weather events driven by climate change.
The Federal Energy Regulatory Commission approved the new rule, 2-1, with Chairman Willie Phillips and fellow Democratic commissioner Allison Clements voting in favor. Republican Mark Christie opposed the rule, dismissing it as a gift to solar and wind power operators.
The sprawling, 1,300-page rule, which addresses transmission planning and cost allocations, will enhance the country’s aging grid and ensure U.S. homes and businesses keep the lights on for decades to come, Phillips said.
“This rule cannot come fast enough,’’ he said at a packed commission meeting at the agency’s Washington headquarters. “There is an urgent need to act to ensure the reliability and the affordability of our grid.’’
The U.S. power grid “is at a make-or-break moment’’ and is being tested every day, Phillips said, citing “phenomenal load-growth from a domestic manufacturing boom, unprecedented construction of data centers fueling an AI revolution and ever-expanding electrification” of vehicles and buildings.
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