Utilities and the Grid

Utility policy plays a pivotal role in the pursuit of climate goals and the transition from a fossil fuel-based economy to a clean energy economy. The utility sector is a primary source of greenhouse gas emissions, with the power sector contributing 25% to total U.S. emissions. Currently, about 60% of electricity generation is still derived from fossil fuels such as coal, natural gas, petroleum, and other gasses. By creating and implementing effective utility policies, legislators can help steer the energy industry away from fossil fuels and towards cleaner, more sustainable practices. The benefits from the transition to a clean energy economy cannot be achieved without investing in an efficient, optimized, and modern grid that can effectively utilize new technologies and resources, while also responding to customer needs and decreasing customer costs. The electrical grid plays a pivotal role in the clean energy future by enabling the reliable integration, distribution, and utilization of clean energy resources on a large scale.

Utility policy to decarbonize the power sector is fundamental to addressing the climate crisis, because so much of reducing greenhouse gasses requires electrifying other sectors, like transportation and buildings. Outdated utility regulations are keeping fossil fuels online and energy costs high. Fortunately, there are many ways to modernize the grid and utility management.

This briefing book seeks to provide a pool of successful climate and clean energy policies for state legislators to reference as they are looking forward to next sessions.

As the grid ages and extreme weather events like wildfires become more prominent, the relationship between them grows increasingly strained. Grid failures can trigger wildfires, while wildfires and the increased fire risk can, in turn, cause more grid failures, creating a vicious cycle. To reduce wildfire risk, some utilities are adopting strategies such as adjusting grid control settings, implementing public safety power shut-offs during high-risk weather, vegetation management, and worker protocols for dry conditions. State legislators can encourage utility adoption of these wildfire mitigation risk strategies and plan for future wildfire risk.