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GAO-09-944R 1 (2009-08-11)

handle is hein.gao/gaobadwxv0001 and id is 1 raw text is: I im TM WAccountability * Integrity * Reliability United States Government Accountability Office Washington, DC 20548 B-318508 August 11, 2009 The Honorable Jeff Bingaman Chairman The Honorable Lisa Murkowski Ranking Minority Member Committee on Energy and Natural Resources United States Senate The Honorable Henry A. Waxman Chairman The Honorable Joe L. Barton Ranking Minority Member Committee on Energy and Commerce House of Representatives Subject: Federal Energy Regulatory Commission: Smart Grid Policy Pursuant to section 801(a)(2)(A) of title 5, United States Code, this is our report on a major rule promulgated by the Federal Energy Regulatory Commission (Commission), entitled Smart Grid Policy (Docket No. PL09-4-000). We received the rule on July 20, 2009. It was published in the Federal Register as a policy statement on July 27, 2009. 74 Fed. Reg. 37,098. The policy statement provides guidance regarding the development of a smart grid for the nation's electronic transmission system, focusing on the development of key standards to achieve interoperability and functionality of smart grid systems and devices. In the policy statement, the Commission also adopts an Interim Rate Policy for the period until interoperability standards are adopted by the Commission. The Interim Rate Policy provides for smart grid devices and equipment to be used and useful, thus includable in a public utility's rate base, for purposes of cost recovery so long as an applicant makes certain showings. The Interim Rate Policy will require an applicant seeking recovery of smart grid costs to demonstrate that the smart grid facilities will advance the goals of the Energy Independence and Security Act of 2007 (EISA), that the reliability and cybersecurity of the bulk-power system will not be adversely affected by the deployment of the smart grid facilities at issue, and that the applicant has minimized the possibility of stranded investment in smart grid equipment, in light of the fact that such filings will predate adoption of interoperability standards. Also, an applicant must agree to provide feedback useful GAO-09-944R

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