Explainer: As power demand grows, the GRID Act offers a practical solution to strengthen reliability by ensuring dispatchable resources can connect when most needed. Here’s what the GRID Act does — and does not — do.
Rising Demand and the Reliability Challenge
If numerous demand growth forecasts are to be believed, the challenges facing the United States electric grid are significant. Many believe that our power system will experience robust demand growth in the coming years – a prospect that will require sizable investment across the entire electric grid. But Rome wasn’t built in a day, and no single legislative or regulatory action can stand on its own as the silver bullet or magic elixir to achieve reliability, affordability, and sustainability if U.S. electricity demands grows at 1-2% annually.
A Targeted Solution: The GRID Act
Congressman Troy Balderson’s (R-OH) Guaranteeing Reliability through the Interconnection of Dispatchable Power (GRID) Act (H.R. 1047) is an example of thoughtful and targeted legislation that can help buttress grid reliability during the expected rapid demand growth without disrupting the way that capacity is studied and ultimately provided a green light for interconnection.
The Electric Power Supply Association (EPSA) remains outspoken on the importance of interconnection queue reform. The GRID Act takes the world as it is and recognizes that we must deal with the queue process that we have, even as the industry strives to make improvements. EPSA is pleased to support the GRID Act, and I was grateful for the opportunity to testify before the U.S. House Energy & Commerce Committee’s Energy Subcommittee earlier this year in support.
The Role of Dispatchable Resources
The GRID Act also recognizes the immutable fact that different capacity resources offer grid operators different attributes and characteristics. Some capacity assets are able to respond to dispatch instructions and can operate between an economic minimum and economic maximum levels for a defined period. Other types of capacity may not be as operationally flexible as other assets – assets that are dependent on appropriate weather conditions to produce electricity are distinct from generation that can run regardless of the weather. This is not a criticism – simply a recognition that not all capacity operates the same – and all resources have a role to play in the triad of reliability, affordability, and sustainability. However, “dispatchable” assets provide a heightened level of flexibility for grid operators, and ensuring a sufficient quantity of dispatchable assets is critical to maintaining reliability. When appropriate to meet reliability needs, investment in dispatchable assets should be prioritized in limited quantities to speed their interconnection.
How the GRID Act Works
The GRID Act is thoughtful about the potential for initiating a process to modify the interconnection queue. The bill ensures “a demonstration of need for prioritization of the relevant projects.” The process can’t be triggered without the reliability need being demonstrated and articulating how the queue prioritization would address that need, and a stakeholder process would be convened for examination. Finally, the proposal would have to be approved by FERC to ensure that the federal regulator agrees to the reliability need and appropriateness of the proposal.
Addressing Concerns and Misconceptions
It has been surprising to hear that opponents of the GRID Act believe that this process will become chronic or habit-forming for grid operators or somehow represents a permanent barrier or level of discrimination against non-dispatchable projects. The GRID Act is straightforward – if the immediate reliability need doesn’t exist or can’t be explained, and FERC isn’t convinced both to the urgency and efficiency of the proposal, then queue prioritization doesn’t take place. The bill also directs a periodic review to ensure that the process remains appropriate as technologies mature and may have reliability attributes in the future that they don’t currently possess.
Learning from Recent Experience: PJM’s Reliability Resource Initiative
Of course, the industry has seen a similar process take place in the PJM Interconnection already in 2025 – the Reliability Resource Initiative. A pair of Democratic FERC Commissioners – current Chairman David Rosner and former Commissioner Willie Phillips – emphasized that their support for the RRI was (in part) predicated on the ad hoc basis of these reforms, stating that “PJM is clear that RRI is a one-time solution to a problem caused by its ongoing transition to reformed interconnection procedures.” The Commissioners continued that “RRI is a one-time emergency measure only, not a substitute for a well-functioning interconnection process that allows all resources to connect to the grid quickly and efficiently. If RRI were not a one-time emergency request, we would not find PJM’s proposal to be just and reasonable.” (emphasis added) PJM selected 51 projects totaling 9,300 MW through the RRI.
Competitive Markets and Meeting Reliability Needs
EPSA continues to be the industry’s leading voice advocating for the benefits of competitive wholesale markets. Well-designed and efficient competitive markets can drive innovation and competition and meet the nation’s reliability needs at the lowest cost, without shackling a captive rate base with backstopping potentially inefficient or unnecessary investment. We strive every day to improve market efficiency; however, demand growth won’t wait as stakeholder and regulatory processes grind along.
EPSA hopes that reliability needs never arise requiring the use of the queue process created by the GRID Act. But we applaud Congressman Balderson for recognizing that real world reliability needs must be met, and we hope that the House of Representatives will follow Congressman Balderson’s lead by approving the GRID Act.
What the GRID Act Does — and Does Not Do
The GRID Act Does:
- Allow limited prioritization of dispatchable generation projects only when a clear reliability need is demonstrated.
- Require a transparent stakeholder process and review before any queue prioritization is approved.
- Place final authority with FERC to confirm both the urgency and appropriateness of proposed actions.
- Ensure periodic review so the process adapts as technologies evolve and new reliability attributes emerge.
The GRID Act Does Not:
- Serve as a silver bullet — it is a targeted backstop tool to be used sparingly.
- Permanently alter the interconnection process or create an ongoing bias against non-dispatchable resources.
- Provide a “blank check” for queue prioritization without proof of reliability need.
- Replace or undermine ongoing interconnection queue reform efforts.
