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1 1 (May 31, 2022)

handle is hein.crs/govefww0001 and id is 1 raw text is: Congressional ____ 'aResearch Service U.S. Electricity Sector: Summer 2022 Outlook May 31, 2022 Ahead of summer 2022, federal officials have released several warnings about anticipated reliability risks and higher electricity prices compared to 2021. This analysis summarizes these warnings and provides additional information, should Congress consider oversight or other actions in response to these warnings. Demand for electricity peaks in much of the country during the summer, as air conditioning use increases. Losing access to electricity-either from power outages or affordability challenges-may be especially impactful (and potentially life threatening) during the hotter times of the year. In part, officials' warnings stem from ongoing trends, such as energy commodity price increases, retirement of coal-fired power plants, increased use of natural gas and renewable energy sources, and drought conditions in the West. Other contributing factors are relatively new, including Russia's war in Ukraine. Electric reliability of the bulk power system (i.e., electric generators and high-voltage transmission lines) in the contiguous United States is primarily overseen by the Federal Energy Regulatory Commission (FERC) in conjunction with the North American Electric Reliability Corporation (NERC). On May 18, 2022, NERC released its 2022 Summer Reliability Assessment (SRA). The report identified high and elevated reliability risks for much of the country (see Figure 1). For the Midcontinent Independent System Operator (MISO) region, NERC warns that grid operators may struggle to meet electricity demand during normal conditions, and that more extreme temperatures, higher generation outages, or low wind conditions could result in higher risk of temporary (rolling) blackouts. NERC attributes the risk in MISO to a combination of multi-year trends of generator retirements (in excess of new additions) and increased electricity demand from 2021 levels as pandemic impacts lessen. MISO identifies utility and state policies to reduce carbon emissions as drivers for these multi-year trends. For the regions viewed as at elevated risk, NERC attributes much of the risk to the ongoing drought in much of the western United States. Drought increases reliability risks in multiple ways, including (1) reducing the availability of hydropower; (2) potentially limiting the use of thermal power plants that use river water for cooling; and (3) contributing to high temperatures which increase demand for electricity. High temperatures in mid-May in Texas prompted some to raise concerns about summer electric reliability there, in light of the February 2021 outages that affected much of the state. During the May high temperatures, some power plants shut down, but without widespread power outages. Congressional Research Service https://crsreports.congress.gov IN11943 CRS INSIGHT Prepared for Members and Committees of Congress

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