FERC commissioner talks industry challenges, praises SPP

A member of the Federal Energy Regulatory Commission (FERC) said watching how SPP does business is refreshing, especially given intense clashes ongoing in other areas of the country over electricity cost and transmission.

“I want to congratulate you on a really robust set of proposals at FERC,” Commissioner David LaCerte said at the Energy Synergy Summit in Dallas. He spoke during a “fireside chat” with SPP CEO Lanny Nickell on March 2.

Commissioner David LaCerte (left) and SPP President and CEO, Lanny Nickell (right) at SPP Energy Synergy Summit.

LaCerte of Louisiana was nominated last year by President Donald Trump for the position at FERC. He previously held senior roles in both state and federal government, including at the U.S. Office of Personnel Management, the U.S. Chemical Safety and Hazard Investigation Board, and as secretary of Veterans Affairs in Louisiana.

He described the energy challenges facing the country as a “dynamic environment and it’s hard to regulate our way out.” He said it’s imperative to first work within the system to see what can be achieved.

“Collaboration,” LaCerte said. “You do this probably better at SPP than anywhere in the country. You don’t see the level of infighting we see in other areas. So, congratulations on that.”

SPP’s Energy Synergy Summit featured multiple panels with industry leaders talking about  top energy issues, including transmission planning, AI, innovation, and pricing reform.

“The bigger risk is moving too slow in such a fast-paced environment,” LaCerte of what’s facing the industry. “Winning the AI race is such a key moment for the world. We need to be identifying the risks of today. They aren’t the same risks as six months ago. Everyone in the energy world historically has been concerned with what’s good in their particular area. We’ve got to break that logjam.”

LaCerte addressed multiple topics. They included:

Generation Interconnection. “We’re definitely having conversations now. I don’t want Washington to dictate a one size-fits all. What works in the West probably won’t fit with New England. With SPP, show us you’re doing a good job. Show us what works and what doesn’t work, so we can adopt best practices.”

FERC Order 1920, issued during the Biden Administration, that requires certain long-range planning. “Long-term planning looks different now. Planning has such a large deviation it’s almost impossible to get it right. FERC is used to doing business differently than what needs to be done today.”

Grid-enhancing technologies. “We have to get a lot more efficient with how we handle the existing grid. You’ll probably see us at FERC look at what we can do with any incentives we can tweak. If the grid is more efficient, it lowers the need for more transmission.”

Ensuring the reliability and affordability of the grid. “Reliability and affordability are on the same side. We have to do everything we can do to meet the growing energy demand. We can’t put this on the back of people who can’t afford to have those costs thrust upon them.”

Regional transmission organizations. “RTOs have been indispensable in producing policies and proposals and showing us what works and what doesn’t. Feedback from the RTOs is vitally important to everything we do. We need more collaboration and communication among RTOs.”