This Act mandates that electric utilities update their long-term planning to ensure a minimum of ten years of reliable power generation capacity, defined by strict fuel and operational standards.
Gabe Evans
Representative
CO-8
The State Planning for Reliability and Affordability Act mandates that electric utilities must update their long-term energy plans to guarantee a minimum of ten years of reliable power availability. This reliability is defined by requiring power sources to generate electricity continuously for at least 30 days, supported by sufficient on-site or contracted fuel supplies. State regulators must review and adopt this new reliability standard within two years, though prior consideration of the standard may exempt them from these deadlines.
The new State Planning for Reliability and Affordability Act is a big move to overhaul how electric utilities plan for the future, specifically focusing on keeping the lights on during emergencies. In short, the bill forces utilities that use long-term planning (called integrated resource planning) to prove they can maintain reliable power for the next decade. The key detail here is the new definition of “reliable generation”: any power plant used for this purpose must be able to run continuously for at least 30 days and must have either the fuel stored on site or a guaranteed contract for that 30-day supply. This is a significant change aimed at preventing blackouts during extended crises.
This bill is trying to solve the very real problem of grid vulnerability, where a bad storm or a fuel supply disruption can knock out power for days. By mandating a 30-day supply buffer for power generation facilities, the bill sets a high bar for reliability. Think of it like this: your utility can’t just plan to use a power source; they must show they have the gas in the tank—or the contract for the gas—to keep that source running for an entire month, no matter what’s happening outside. This also requires those facilities to have operational features that allow them to run during emergencies and provide essential grid services like voltage support.
While the goal—a more resilient grid—is excellent, the cost of this extreme reliability standard is the question everyone needs to ask. Generating facilities, particularly those that rely on intermittent sources like wind or solar, will face a massive challenge meeting that 30-day continuous supply requirement. To qualify, they would likely need to pair their generation with massive, expensive battery storage systems or alternative fuel sources, which could significantly increase the cost of those projects. For utilities relying on traditional sources like natural gas, the cost comes from purchasing and storing 30 days’ worth of fuel, which is a considerable upfront investment.
Ultimately, these added planning and operational costs will likely be passed down to the consumer. For the average family or small business owner already juggling rising expenses, this means potentially higher electricity rates in exchange for a much more stable grid. It’s a trade-off between guaranteed reliability and affordability.
The bill also puts state regulatory authorities and nonregulated utilities on the clock. They must review this new reliability standard and decide whether to adopt it within two years of the bill becoming law. That means the conversation about how to implement the 30-day rule, and who pays for it, is coming to your state capitol soon. However, there’s a loophole: if a state already considered or adopted this specific reliability standard within the last three years, they can skip these new deadlines. This acknowledges that some states were already focused on hardening their grids, but for many others, the clock is ticking to figure out how to meet this new, strict definition of reliable power.