Stopping Hikes In Electricity from Large Load Demands Act; SHIELD Act
Summary
The SHIELD Act amends the Public Utility Regulatory Policies Act of 1978 (PURPA) to address electricity costs associated with large load facilities (those exceeding 75 megawatts). It classifies these facilities as a distinct class of electric consumers. The Act mandates that utilities fully recover the costs of grid upgrades needed to serve these facilities directly from that consumer class.
Expected Effects
The primary effect will be to shift the cost burden of grid upgrades for large load facilities onto those facilities themselves. This could incentivize these facilities to adopt energy efficiency measures and utilize on-site zero-emission energy generation. State regulatory authorities and nonregulated utilities will be required to consider and determine standards related to large load facilities.
Potential Benefits
- Incentivizes energy efficiency and conservation measures among large load facilities.
- Promotes the use of on-site zero-emission energy generation, potentially reducing overall greenhouse gas emissions.
- May lead to more transparent and equitable cost allocation for electricity infrastructure upgrades.
- Could reduce the burden on other rate payers for the electricity demands of large facilities.
- Prioritizes grid reliability by encouraging demand reduction during peak times.
Potential Disadvantages
- Could increase the cost of electricity for large load facilities, potentially impacting their operations.
- May create disincentives for new large load facilities to locate in areas with existing grid constraints.
- The definition of 'large load facility' may need refinement to avoid unintended consequences.
- The cost recovery mechanism could be complex to implement and monitor.
- Potential for increased costs to be passed on to consumers if large load facilities are essential services.
Constitutional Alignment
The SHIELD Act appears to align with the Commerce Clause (Article I, Section 8, Clause 3) by regulating the interstate transmission and sale of electricity. It also aligns with the General Welfare Clause (Preamble) by aiming to ensure reliable and affordable energy. The Act does not appear to infringe upon any specific individual rights or liberties protected by the Constitution or its amendments.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).