Post: Trump  seeks to expand federal role in resource adequacy

Trump  seeks to expand federal role in resource adequacy

President Trump has issued an Executive Order directing the Department of Energy to take steps to expand the use of its emergency authority to require the retention of generation resources deemed necessary to maintain resource adequacy.

The Executive Order, issued on April 8, underscores the importance of a dependable electric grid to support technological innovation and economic growth. It mandates the utilization of all available power generation resources, emphasizing those with secure and redundant fuel supplies capable of extended operations.

To address potential electricity supply interruptions, the Secretary of Energy is directed to expedite processes under Section 202(c) of the Federal Power Act. This includes reviewing and approving applications from electric generation resources seeking to operate at maximum capacity during emergencies. Within 30 days of the order, the Secretary of Energy must develop a standardized methodology to analyze current and anticipated reserve margins across regions regulated by the Federal Energy Regulatory Commission. This analysis will identify areas with reserve margins below acceptable thresholds, considering various grid conditions and historical performance data. A process will be established to regularly assess the methodology and its results. Additionally, a protocol will identify generation resources critical to system reliability within at-risk regions, ensuring their availability through mechanisms permitted by law.

The Order was issued on the same day as three other energy-focused executive orders—including one focused on the continued use of coal to produce electricity and one that seeks to “take all appropriate action to stop the enforcement of State laws and continuation of civil actions” that are deemed “fundamentally irreconcilable with [the] Administration’s objective to unleash American energy”.  

They also follow a string of executive orders issued in early January focused on expanding the production of fossil fuels and undermining the prior administration’s efforts to support the growth of renewable and zero-carbon resources.