Clean Energy Backlog Eases with Groundbreaking New Rule: Kiplinger Economic Forecasts
The Federal Energy Regulatory Commission is opening up the pathway to the electric grid.
To help you understand what is going on in the energy sector and what we expect to happen in the future, our highly-experienced Kiplinger Letter team will keep you abreast of the latest developments and forecasts (Get a free issue of The Kiplinger Letter or subscribe). You'll get all the latest news first by subscribing, but we will publish many (but not all) of the forecasts a few days afterward online. Here’s the latest...
Federal regulators want to connect new projects to the electric grid faster. A new rule shifts the approach of the Federal Energy Regulatory Commission from “first come, first served” to “first ready, first served” when the agency decides what grid upgrades to prioritize to bring new generation and storage projects online.
The rule is FERC’s first update to interconnection requirements in two decades. Wait times to connect projects to the grid have escalated in recent years. A typical power plant or storage project built in 2022 took roughly five years to proceed from its interconnection request to commercial operation, up from three in 2015.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Meanwhile, interconnection queues increased by 40% last year, bringing the total backlog of projects awaiting grid connection to 2,000 gigawatts. Experts say the move is a step in the right direction, but more is needed to reduce interconnection backlogs, as well as the cost of completing upgrades.
FERC is preparing another rule intended to spur transmission development via improved planning and cost allocation, to be released in the coming months.
With odds of a bipartisan deal to reform energy permitting starting to fade, the agency’s regulatory moves will play an outsize role in the promotion of new and improved grid infrastructure. Congressional Democrats have started to petition FERC — now evenly split between two Democrats and two Republicans, with one vacancy — on possible changes to proposed regulations. Willie Phillips, acting FERC chairman, has committed to advancing rules in a bipartisan manner.
The question now is who will fill FERC’s lone vacancy, as well as when, tipping the agency’s balance of power back in favor of the Democrats. The White House has yet to name a nominee for consideration by the Senate, despite much speculation.
This forecast first appeared in The Kiplinger Letter, which has been running since 1923 and is a collection of concise weekly forecasts on business and economic trends, as well as what to expect from Washington, to help you understand what’s coming up to make the most of your investments and your money. Subscribe to The Kiplinger Letter.
Related Content
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
-
A Modern Guide to Money Etiquette: Gifts, Tips, Splitting Bills and More
What is modern money etiquette? The customs for splitting a restaurant check, purchasing a wedding gift, tipping and more have evolved. These guidelines can help.
By Emma Patch Published
-
Want to Give Money to Your Adult Children? 10 Things You Should Know
It’s less taxing to give money to your adult children than you might think. A good plan can help you avoid certain pitfalls — and drama.
By Jeremy Greenfield Published
-
The Big Questions for AR’s Future
The Letter As Meta shows off a flashy AR prototype, Microsoft quietly stops supporting its own AR headset. The two companies highlight the promise and peril of AR.
By John Miley Published
-
China's Economy Faces Darkening Outlook
The Letter What the slowdown in China means for U.S. businesses.
By Rodrigo Sermeño Published
-
The Key Presidential Campaign Issues of 2024
The Letter Donald Trump and Kamala Harris stake out their positions on trade, immigration, and taxes.
By Matthew Housiaux Published
-
Changes to Estate Tax Are Coming... Six Options Congress Could Take
The Tax Letter An important estate tax change is looming. Here are six ways that Congress might address estate taxes in 2025.
By Joy Taylor Published
-
Should We Worry About the Slowing U.S. Economy
The Letter With the labor market cooling off and financial markets turning jittery, just how healthy is the economy right now?
By David Payne Published
-
A Look at Kamala Harris's Tax Plans Ahead of the Election
The Tax Letter Under Harris's tax proposals, upper-income individuals would pay more taxes, while the middle class and lower-income people would pay less.
By Joy Taylor Last updated
-
A Look at Donald Trump's Tax Plans Ahead of the Election
The Tax Letter We take a look at Donald Trump's tax plans and what they could mean for you. Here's what you need to know.
By Joy Taylor Last updated
-
An Early Look at the 2024 Presidential Race
The Kiplinger Letter Two months out, presidential candidates, Harris and Trump are neck and neck. An early look at the election picture.
By Matthew Housiaux Published