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Proactive Regulatory Approaches to Electrification and Load Growth: Workshop Report

On July 10 and 11, 2024, Pacific Northwest National Laboratory and RMI led a workshop in Aurora, Colorado, to explore novel and proactive approaches to electrification and load growth while minimizing risks and costs to customers. Over the next decade, a unique opportunity exists to invest strategically in the electricity system to enable electrification across the transportation, industrial, and building sectors and respond to data and technology-based load growth. However, current utility and regulatory planning practices are insufficient to identify and enable the right investments, and work must be done to reduce the risk and decisional uncertainty faced by utility regulatory commissions and utilities. Ensuring timely electrification investments may require new approaches to address risk, uncertainty, prudence, and cost recovery. Understanding the decision-making process and information needs of utilities and regulators is critical. New policies (or application of policies), financial tools, systems analysis, regulatory mechanisms, and enhanced process transparency may be required. The workshop's goal was to identify proactive regulatory approaches for electrification and load growth that minimize costs and risks to customers. Our intention was that the conversations and the resulting solutions and takeaways would be specific and tactical rather than general and theoretical and that together we would create actionable next steps for key actors in the system, including utilities, regulators, thought leaders, researchers, and the U.S. Department of Energy (DOE). This report is intended to provide workshop attendees with a record and summary of the discussion and proposals raised at the workshop and to provide interested entities who did not attend, such as other regulators, policymakers, utilities, and U.S. DOE offices, with an understanding of what was discussed and with ideas to explore in their organizations.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Unlocking load growth at the grid edge: Practices for managing, recovering, and allocating distribution system investments

Utilities and utility regulators are preparing to make significant investments in the electricity distribution system driven by expected load growth in coming years and decades. Regulators will be tasked with vetting investment proposals and implementing cost recovery and allocation mechanisms. In particular, state regulators are anticipating the need to make proactive distribution system investments, building the capability to serve new load in advance of demand. This report focuses on load growth from homes and businesses that adopt electric vehicles and heat pump heating technologies. Through a review of legislation and regulatory dockets in a subset of states, we provide insights into emerging utility and regulatory practices to recover and allocate costs of electrification-driven distribution system investments necessary to accommodate these technologies. Our review focused on utility electrification programs, line extension policies, and proactive investments. Our report is largely descriptive, offering detailed information about approaches different state commissions and utilities have implemented to inform future decision-making.

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Quantifying the Effect of Economic Development Zones on Electrical Load Growth in Kentucky [Slides]

The Kentucky Energy and Environment Cabinet has recently undertaken a comprehensive effort to map and catalog potential economic development sites across the state. The purpose of this technical assistance is to quantify the potential impact of developing designated sites on Kentucky's electricity load growth, providing insights at both state and county level considering the next 10 years. This analysis should explicitly incorporate and address key project uncertainties by developing various load growth scenarios that account for development scale, site specificity, and sector variability. The need for a site-specific analysis comes from the understanding that conventional econometric (top-down) load forecasting models cannot sufficiently isolate or predict the discrete load increases resulting from the development of these unique and targeted economic sites.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Proactive Regulatory Approaches to Electrification and Load Growth: Pre-read Document to Support the July 10-11 th Workshop

This document summarizes objectives and context related to a DOE-funded workshop on proactive regulatory approaches to electrification and load growth. It briefly summarizes some of the regulatory barriers to pursuing a proactive approach and some of the risks associated with such an approach. It then summarizes a selection of recent utility proposals and public utility commission actions related to proactive approaches.

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Digital Assurance for Grid Reliability in the Era of Large Load Growth

The rapid expansion of large electric loads is reshaping the operational and regulatory landscape of the U.S. electric grid. These facilities are reaching new scales of expansion, now exceeding a gigawatt per site, and their highly sensitive, digitally driven behaviors introduce new reliability risks. Recent grid events, including large load losses following routine transmission disturbances, highlight the consequences of limited ride-through capability, inconsistent protection settings, inadequate modeling, and lack of behind-the-meter visibility. Parallels to earlier integration challenges of new grid technologies suggest that the grid’s existing processes, standards, and interconnection frameworks are no longer adequate for emerging large loads. This brief synthesizes lessons from the evolution of inverter-based resource regulation and applies them to large-load integration. It identifies critical gaps in modeling accuracy, interconnection processes, performance standards, and compliance mechanisms. Technical recommendations emphasize advanced monitoring, improved modeling, coordinated communication protocols, modernized substations, and structured behind-the-meter control schemes. Collectively, these measures provide a roadmap to maintain bulk power system reliability while enabling the continued growth of large, electrified digital infrastructure.

24 - POWER TRANSMISSION AND DISTRIBUTION↗

Data Privacy for the Grid: Toward a Data Privacy Standard for Inverter-Based and Distributed Energy Resources

The traditional approach to planning the distribution grid has focused on reliability in the context of gradual and reasonably predictable load growth. Forecasts of load growth, combined with asset management practices, were used by system planners to identify upgrades to the system to maintain or improve reliability. The decisions, typically based within load flow analysis tools, included considerations about contingency scenarios and corporate forecasts (i.e., top-down predictions at a summary level of what would happen in a particular area that could impact load growth and behavior). As a result, today, this traditional approach no longer fits all purposes.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

U.S. Distribution Transformer Demand Phase III - Key Drivers and Managing Demand [Slides]

This presentation demonstrates a significant analysis, on forecasting the demand for distribution transformers. The analysis is conducted for the United States, estimating the initial in-service capacity of these assets, and forecasting demand for these assets through 2050 with several sensitivities conducted. It examines not only demand for these assets, but importantly, how utility planning practices can impact the demand for theses assets in time. Under load growth scenarios, whether utilities practice like-for-like replacement strategies as failures occur, or whether they practice proactive up-sizing, anticipating electric load growth, can have major impacts on future demand. It also examines several other growth factors, such as the increasing demand for step-up transformers, which share many of the same characteristics as distribution transformers, and the demand for specific transformers for large project growth from data centers.

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Storing Affordability: Battery Storage as an Asset to Reduce Data Center Cost Shifts

This report examines how battery energy storage systems (BESS) can help utilities accommodate large load growth while protecting affordability for existing ratepayers. Rapid growth in electricity demand from artificial intelligence (AI) data centers is straining the U.S. grid. Furthermore, many new data centers are entering rural markets, which could offer economic benefits but may also pose implementation challenges for smaller utilities. At the same time, retail electricity prices are increasing faster than inflation, elevating customer affordability as a key challenge. While data centers have not been the primary driver of increases in residential prices to date, they have pushed wholesale energy and capacity prices higher in several markets. Fundamental utility cost-allocation principles show that data center growth can be rate-positive for existing customers only if new peak demand grows faster than the costs a utility must incur to serve it. Several factors, including a utility’s degree of wholesale market exposure, forecast uncertainty and stranded-asset risk, and tariff design can determine the outcome of load growth on retail rates. Energy storage can make several affordability contributions in the face of this landscape of uncertainty and market volatility, including deferral of higher-cost grid investments through improved utilization of existing assets and flexibility of new large loads, insulation from volatile wholesale prices through peak shaving, and reliability support to address grid risks stemming from the behavior of AI data center loads. Different potential BESS deployment pathways—utility-scale front-of-the-meter systems, aggregated small-scale storage installations, and data center-sited behind-the-meter storage—are compared against each other and against conventional capacity alternatives. This framework is intended as a conceptual resource to utilities, particularly smaller public utilities with rural service territories, who may be considering the role that energy storage can play in insulating existing ratepayers from data center cost shifts.

25 ENERGY STORAGE↗

Securing the Modern Grid: Federal Investments, Digitization, and Supply Chain Strategy

Across the United States (U.S.) grid expansion and modernization is underway, paving the way for accelerated load growth and intelligent resource management. Digitization of the grid is supported by several state and federal programs, providing support for utilities installing advanced metering infrastructure (AMI), AI-powered analytics systems, battery energy storage systems (BESS), and distributed energy resource management systems (DERMS) to transform the grid from a one-way power delivery system into an intelligent, responsive network that will enable faster load growth and power expansion of data centers for advanced artificial intelligence (AI) applications. The digital transformation of America's grid presents opportunity for increased efficiency and resiliency but also introduces new digital risks that require careful management. Digital equipment often contains several vulnerabilities such as unencrypted communication protocols, and persistent remote access capabilities that could be exploited to manipulate device settings, coordinate service disruptions, or inject false data into grid operations. These digital risks become particularly important as the grid must rapidly scale to support AI-driven data centers, which the administration has identified as essential for maintaining U.S. technological leadership and economic competitiveness. These vulnerabilities are compounded by supply chain realities: Chinese manufacturers currently produce 70-90% of essential grid components including inverters, batteries, and control systems, with the U.S. lacking domestic manufacturing capacity for critical assets like extra-high voltage transformers. Recent federal legislation has established Foreign Entity of Concern (FEOC) restrictions to address these risks, requiring projects to achieve escalating thresholds of non-FEOC content to receive tax credits while utilities work to expand sourcing channels for their supply chains and strengthen security measures. These restrictions arrive precisely when utilities face unprecedented electricity demand growth driven by the rapid growth in data centers, creating a considerable challenge: rapidly expanding infrastructure while navigating complex compliance requirements while lacking viable alternatives for many critical components. Idaho National Laboratory (INL) and its partners have developed practical approaches to help utilities navigate these intersecting challenges as they leverage federal investment to strengthen and grow the grid. These solutions include Cyber-Informed Engineering (CIE) principles that build resilience directly into systems, the Cirrus tool for secure cloud migration, and enhanced procurement guidance that embeds security requirements throughout equipment lifecycles. Federal initiatives, such as the Technical Assistance for Digital Assurance (TADA) project, provide direct support to utilities implementing these approaches while facilitating knowledge sharing across the industry. While these tools and frameworks cannot eliminate all risks inherent in foreign supply chain dependencies, they offer pragmatic pathways for strengthening security posture without sacrificing the deployment momentum essential to meeting surging electricity demand. Ultimately, securing America's digital energy infrastructure demands dedicated coordination across multiple fronts: building domestic supply chains, implementing robust digital assurance practices, and maintaining the aggressive modernization timeline necessary for reliability, resilience, and energy independence.

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Models of SIV rebound after treatment interruption that involve multiple reactivation events

In order to assess the efficacy of novel HIV-1 treatments leading to a functional cure, the time to viral rebound is frequently used as a surrogate endpoint. The longer the time to viral rebound, the more efficacious the therapy. In support of such an approach, mathematical models serve as a connection between the size of the latent reservoir and the time to HIV-1 rebound after treatment interruption. The simplest of such models assumes that a single successful latent cell reactivation event leads to observable viremia after a period of exponential viral growth. Here we consider a generalization developed by Pinkevych et al. and Hill et al. of this simple model in which multiple reactivation events can occur, each contributing to the exponential growth of the viral load. We formalize and improve the previous derivation of the dynamics predicted by this model, and use the model to estimate relevant biological parameters from SIV rebound data. We confirm a previously described effect of very early antiretroviral therapy (ART) initiation on the rate of recrudescence and the viral load growth rate after treatment interruption. We find that every day ART initiation is delayed results in a 39% increase in the recrudescence rate (95% credible interval: [18%, 62%]), and a 11% decrease of the viral growth rate (95% credible interval: [4%, 20%]). We show that when viral rebound occurs early relative to the viral load doubling time, a model with multiple successful reactivation events fits the data better than a model with only a single successful reactivation event.

59 BASIC BIOLOGICAL SCIENCES↗

Evaluating Impacts of the Inflation Reduction Act and Bipartisan Infrastructure Law on the U.S. Power System

The Inflation Reduction Act of 2022 (IRA) and the Infrastructure Investment and Jobs Act of 2021, commonly referred to as the 'Bipartisan Infrastructure Law (BIL),' collectively represent the largest commitment of the U.S. Federal Government to invest in the modernization and decarbonization of the U.S. energy system. The Congressional Budget Office (CBO) estimates that total support for the broad range of climate and clean energy programs, tax credits, and other incentives authorized through the two laws will exceed $430 billion from 2022 through 2031 (CRS 2022; CBO 2021, 2022). While the climate and clean energy provisions are numerous and have the potential to impact all aspects of the U.S. energy system from fuel and electricity production to final consumption in industry, transportation, and buildings, the provisions relevant to the electricity sector - in particular the suite of tax credits for clean generation, storage, and carbon dioxide ( CO 2 ) capture and storage - are expected to be some of the most consequential in terms of emissions reduction and clean energy deployment (Larsen et al. 2022; Jenkins, Mayfield, et al. 2022; Mahajan et al. 2022; Zhao et al. 2022). In this report, we detail the methods and results of a study estimating the potential impacts of key provisions of IRA and BIL on the contiguous U.S. power sector from present day through 2030. The analysis employs an advanced power system planning model, the Regional Energy Deployment System (ReEDS), to evaluate how major provisions from both laws impact investment in and operation of utility-scale generation, storage, and transmission, and, in turn, how those changes impact power system costs, emissions, and climate and health damages. While not exhaustive in capturing every provision, the analysis estimates the possible scale of power-sector impacts that could result from the modeled provisions in IRA and BIL. The study is structured around two scenarios to evaluate the potential impacts of both laws on the power sector: 1) No New Policy: A counter-factual scenario that reflects all Federal and state policies enacted as of September 2022, with exception to IRA and BIL, and assumes load growth consistent with the Energy Information Administration's Annual Energy Outlook 2022 (AEO22) Reference case (EIA 2022a); 2) IRA-BIL: A scenario reflecting all Federal and state policies enacted as of September 2022, including key IRA and BIL provisions, most notably the investment and production tax credits for zero-carbon emitting electricity generation and storage (ITC and PTC), the tax credit for CO 2 capture and storage (45Q), and the tax credit for existing nuclear plants (described further in Section 2.3). To account for the impacts of IRA and BIL on electrification, assumes increased load growth consistent with a scaled version of the Medium Electrification scenario from the Electrification Futures Study (Mai et al. 2018). These scenarios are simulated across seven sets of assumptions with varying projected future electricity market conditions, including technology costs and performance, natural gas prices, and the degree of availability, feasibility, and cost of development of renewable resources, electricity transmission, and CO 2 pipeline, injection, and storage infrastructure. In addition, we simulate two sensitivities on the 'policy' treatment in which we vary key assumptions pertaining to the realized value of the clean electricity ITC and PTC: 1) the cost of monetization of tax credits, and 2) the level of bonus crediting realized by project developers. We demonstrate that IRA and BIL have the collective potential to drive substantial growth in clean electricity by 2030, while reducing costs for consumers, mitigating climate change, and decreasing the human health impacts of power sector emissions. However, we also demonstrate that if expected cost improvements of clean technologies are not realized and/or constraints on deployment driven by factors such as supply-chain challenges, regulatory hurdles, and the social acceptability of energy infrastructure development limit the rate of clean energy and associated infrastructure deployment (such as transmission), then the share of clean generation achieved and the associated emissions benefits realized may be substantively reduced.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Packages of Distributed Energy Technologies Demonstrating Demand Flexibility at Community Scale

The combination of increased electric load growth across all sectors, deferred electrical infrastructure investment, and other factors resulting in variable electric power supply, has created technical challenges to maintaining a resilient and reliable grid. Many federal, regional, and local efforts are in play to modernize the electric grid, including advancing building technologies and distributed energy resources (DERs) that are utilizing smarter controls to become responsive to both occupant and grid needs. This report reviews ten pilot projects demonstrating how groups of buildings combined with behind-the-meter (BTM) DERs such as electric vehicle (EV) charging, battery storage, flexible HVAC and domestic hot water systems, and photovoltaic systems can reliably and cost effectively provide grid services. Each of the ten pilot projects aim to deliver both energy efficiency and demand flexibility (DF) while supporting load growth. The ten demonstration teams are piloting flexible DER packages across diverse communities of residential and commercial buildings to address a variety of regional grid needs. The outcomes of these pilot projects will be used to inform future scaling through utility program development. This paper characterizes the ten teams, showcasing the decision-making process used by each group to develop their packages (Section 2), the grid services they plan to deliver (Section 3), the types of DER packages selected for deployment within building sectors (Section 4) and trends between building sector, DER types, and grid services In order to achieve community scale benefits, the pilot projects must utilize aggregated control mechanisms for coordinating buildings and DERs together. Several types of coordinated control architectures have evolved amongst the teams, influenced by use type, existing market conditions, and integration type. Three coordinated controls architectures have been characterized, highlighting their use cases, benefits, challenges, and tradeoffs in their design. These insights can aid utilities, control vendors, and developers in scaling community-level energy systems (Paul, 2024). Ultimately, the technology packages selected by the ten teams will be coordinated to provide power system services, also known as grid services. Insights from these demonstrations will be useful for grid operators, regulators, aggregators and other stakeholders as they look to deploy demand flexible resources as grid services in the future. The grid services that each team is targeting for demonstration are described in Section 3 and Section 4. Methods for evaluating the grid services have been described in the paper Metrics for Evaluating Grid Service Provision from Communities of Grid-interactive and Efficient Buildings and other DER (MacDonald, 2023). To identify technology packages for demonstration, Section 2 shows that project teams used a range of analysis approaches, including building energy modeling, AMI data analysis, cost-benefit frameworks, and utility pilot data. Some teams emphasized technical modeling to quantify grid impacts and demand reduction potential, while others prioritized economic evaluations, stakeholder input, or exploratory pilots to inform deployment decisions. This diversity reflects the need to tailor selection methods to project goals, available data, and organizational context. Section 5 discusses trends between the DER technologies deployed and the grid service provisions from each team. Residential buildings (multifamily and single family) lean towards technologies that enhance energy efficiency (e.g. weatherization upgrades, smart thermostats) and onsite power generation integration (e.g. solar PV). Commercial building demonstrations prioritize technologies that ensure operational reliability (e.g. battery storage) and centralized energy management systems and optimization solutions. Teams that are deploying controllable storage-based technologies are more likely to provide grid services that require a near real-time response. Teams incorporating load shifting technologies like smart thermostats with HEMs are likely to include energy markets participation and customer bill management offerings. Campus demonstrations are adopting diverse sets of DERs to emphasize renewable generation, paired with centralized control. This section also describes technologies that were considered during project planning but ultimately excluded from final deployment. These demonstrations reveal that effective DER package design should be tailored to building type, customer segment, and construction vintage. Multifamily buildings benefit from centralized HVAC upgrades and supervisory controls, while single-family homes are well-suited for individualized technologies like solar, storage, and smart home energy monitors. Commercial and campus settings prioritize EMIS integration and load optimization. New construction enables cost-effective integration of DER-ready infrastructure, whereas retrofits require deployments aligned with owner and tenant value streams. For utility program planners, early coordination with developers and building owners, paired with segmented and modular program offerings, can improve adoption, scalability, and grid impact.

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Policy and Cost Allocation Considerations for Large Electric Load Interconnections: Emerging Policy Trends in Rate Structures, Interconnection, and Cost Impacts on Other System Users

Load growth in the United States is rapidly increasing: load from data centers alone has tripled over the past decade, and this growth is forecasted to continue accelerating. These and other large electric loads (LELs) promise economic benefits at the state and local level, but their deployment has also led to increasing concerns about grid impacts and potential cost shifts onto other ratepayers. Legislators, regulators, and other stakeholders are increasingly proposing and enacting policies in effort to balance these and other considerations. This white paper reviews state-level legislation, selected utility rate cases, and relevant federal orders in an effort to describe and categorize relevant trends in policies related to LEL cost allocation, interconnection, and deployment. Policy categories identified through this review include tax incentives, rate actions, and requirements related to interconnection, permitting, and reporting. By offering a taxonomy of policies, this white paper aims to offer a resource to policymakers and other stakeholders navigating this transformative moment for the grid.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Forecasting EV Charging Demand on the Distribution System

The U.S. transportation and electricity sectors have historically operated independently, but the growth of electric vehicles (EVs) is driving their convergence. After decades of stagnant demand, utilities must prepare for rising load growth, driven in part by transportation electrification. Utilities must anticipate when and where these new loads will materialize to effectively manage EV growth and maintain grid reliability. This presentation outlines NREL's approach to developing high-resolution EV load datasets for distribution planning, with insights from the Multi-State Transportation Electrification Impact Study on EV and load forecasting, infrastructure requirements, and managed charging strategies.

25 ENERGY STORAGE↗

Managing Increased Electric Vehicle Shares on Decarbonized Bulk Power Systems

Transportation electrification and power sector decarbonization - the convergence of these two trends present a complex planning problem requiring realistic, region-specific modeling and analysis to ensure that both can happen rapidly and cost effectively. This project, funded through the U.S. Department of Energy's Vehicle Technologies Office, models the evolution of the U.S. bulk power system (through 2050) in response to large-scale EV charging across all on-road vehicle segments. We will assess the opportunity and value of demand-side flexibility (i.e., "smart" charging) for reducing energy costs, increasing renewable generation shares, and managing future EV loads on the bulk power system. Overall, this study aims to provide an improved understanding of least-cost solutions for managing EV load growth on the grid and will make high-resolution EV load data sets publicly available for further analysis.

ADVANCED PROPULSION SYSTEMS,ENERGY PLANNING, POLIC↗

The impact of wind, solar, and other factors on the decline in wholesale power prices in the United States

Across multiple organized wholesale power markets in the United States, annual average prices declined by 19–64 dollars per MWh between 2008 and 2017 while retirements of thermal power plants accelerated. Several prominent changes over the last decade are often discussed as contributors to this decline in prices. These include growth in wind and solar, a reduction in the price of natural gas, and weakened load growth. Here we construct a fundamental supply curve model for each of seven organized wholesale market regions and use counterfactual simulations to assess the degree to which wind and solar—among other factors—have influenced wholesale electricity prices. We find that growth in wind and solar since 2008 reduced average annual wholesale electricity prices by less than 3 dollars per MWh. In contrast the decline in natural gas prices reduced wholesale prices by 7–53 dollars per MWh, depending on the region. This suggests that recent thermal-plant retirements in the U.S. are primarily due to low natural gas prices, not growth in wind and solar. Fully isolating the impact of individual factors, however, is limited by non-linear interactions between factors.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Large Load Management and Grid Planning

This presentation will cover these topics, followed by a discussion and Q&A: Grid impacts of load growth of the current bulk power system, a review of recent trends and events related to large load integration, what might these new large loads look like, what are options for reducing costs and timelines of integration, and working toward a framework for identifying hot spots for efficiently interconnecting large loads.

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