June 16, 2023
Electrifying Our World: Impacts on Grid Integrity & Reliability
The House Republican Policy Committee held the second hearing in a series of hearings on PA energy policy, hosted by Rep. Cabell and Rep. Fritz, to learn from experts responsible for building and maintaining Pennsylvania's electric grid, as well as generators that supply energy to the grid. All testifiers expressed deep concerns about the potential implications of Governor Shapiro's proposed energy tax, and the future of the Commonwealth’s energy policy. The hearing shed light on the challenges posed to the grid's reliability and electrification efforts if baseload energy generators are taxed out of the market, which will lead to increased energy prices and potential grid instability.
The testifiers that joined the Policy Committee were as follows:
Grid Capability Panel
Stephen Bennett - Manager of Regulatory/Legislative Affairs, PJM Interconnection
Grid Sustainability Panel
Glen Thomas - President, GT Power Group
Robert Bair - President, Pennsylvania Building & Construction Trades Council
George Stark - Director of External Affairs, Coterra Energy
“If current trends continue, we will be at elevated risk of resource adequacy shortfalls later in this decade.”
Stephen Bennet
Manager of Regulatory/Legislative Affairs, PJM Interconnection |
Stephen Bennett, Manager of Regulatory/Legislative Affairs at PJM Interconnection, spoke on behalf of PJM. PJM manages the flow of energy on a multistate grid, essentially ensuring that adequate amounts of power are always available when needed. The multistate grid is nearly entirely reliant on Pennsylvania, as Pennsylvania is the primary energy producer within the PJM grid. The energy produced in Pennsylvania is almost entirely generated by natural gas, coal, and nuclear power.
Mr. Bennett emphasized that the majority (97%) of new generation projects in the PJM queue rely on intermittent sources such as solar and wind, which cannot reliably replace existing coal or gas generators on a 1:1 basis. Gas, coal, and nuclear energy can adjust to ever-changing demands in energy usage, while solar and wind are reliant on the sun shining and the wind blowing. Further complicating PJM’s management of our electric grid are the frequent delays in permitting for new generation and interconnection projects. Poor permitting in PA by our state agencies has hindered investments and efficiency improvements in the state, and streamlining the existing permitting process would allow for more generation capacity and economic growth. Constantly increasing generation capacity and updating existing generators ensures stability and reliability into the future as we address efforts to “electrify our world”.
PJM's concerns revolve around ensuring adequate supply, accurate forecasting, robust transmission, and reliable operations. With these concerns in mind, state and federal policies like the Regional Greenhouse Gas Initiative (RGGI) pose significant liabilities to PJM's ability to fulfill their commitment to residents and businesses reliant on a stable electric grid. Mr. Bennett stressed the importance of giving equal focus to protecting and enhancing the grid alongside environmental goals and renewable energy initiatives. With that in mind, PJM shared that solar and wind energy cannot compete with existing electricity generators without state and federal subsidies, which have created an uneven playing field for our energy generators. Environmental and social goals associated with “alternative energies” are laudable, but if these energies cannot meet the needs of Pennsylvania encouraging their proliferation is a liability to the Commonwealth as well as to the states reliant on PA produced energy. In short, the people of PA are being forced to pay more for less, all while risking the future of our entire electric grid.
“The most state-of-the-art plants in the world are right here in PA!”
Glen Thomas
President, GT Power Group |
Glen Thomas, President of GT Power Group, emphasized the unique advantages and challenges faced by Pennsylvania's energy landscape. The state's immense energy reserves, investments in leading electricity generators, and the ability of the public to "shop" for energy have contributed to electric energy prices below the national average. However, the increased use of electric home heating has shifted peak electric use from summer to winter, and Pennsylvania's grid has the capacity to handle this change due to reliable coal and gas on-demand generation. If PA were to increase reliance on solar and wind power meeting the changing needs of electricity users as habits and technologies change would be near impossible.
As stated in PJM’s testimony Pennsylvania's generators must compete with subsidized “alternative” energy sources. Mr. Thomas added that these subsidies are not unique to PA, and the impact of these unbalanced subsidies developed via the poor energy policy of our neighboring states incur a negative impact on PA generators. When tax dollars are used to artificially inflate the value of solar and wind energy existing generators are unable to compete, thus creating an unbalanced market and undermining the competitiveness of in-state energy producers.
“Grid reliability is more than just reliability, its JOBS!”
Robert Bair
President, Pennsylvania Building & Construction Trades Council |
Robert Bair, President of the Pennsylvania Building & Construction Trades Council, highlighted the need for a balanced approach in addressing emissions and preserving grid integrity. Mr. Bair shared the concern of the tradesmen and women who build, maintain, and operate natural gas and coal generators throughout the state. Thousands of jobs rely on the continuation of natural gas and coal energy generation, just as thousands of Pennsylvanians rely on the reliable and inexpensive energy they produce.
It is often touted that skilled trade workers can find new employment in “alternative energy” generators. This is far from the case, as the technical knowledge and know-how is not the same between industries. Furthermore, the long-term security of “alternative energy” maintenance and operation careers is far from certain. What is certain, is that PA tradesmen who previously worked in the energy sector are migrating to new opportunities in Ohio and West Virginia, stripping PA of our capable workforce and families. Mr. Bair expressed that the scale of solar fields required to generate the same output as a single coal-powered generator raises concerns about the impact on farmland and potential environmental consequences. Pennsylvanian’s enjoy our rich farmland and lush forests, and thousands of acres sacrificed for fields of glass, carbon fiber, and steel is not a worthwhile trade for more expensive and less predictable energy. Instead of rebuilding our energy generation from the ground up Mr. Bair advocated for carbon capture and investment in capping abandoned wells as alternative means to address emissions without jeopardizing the electric grid.
“We need ALL energy sources, but we must have a baseload…
We need to utilize all of the natural gas we have underfoot to drive our state forward.”
George Stark
Director of External Affairs, Coterra Energy |
George Stark, Director of External Affairs for Coterra Energy, presented crucial insights on the practical implications of renewable energy and the need for a balanced energy policy. While renewable energy projects like wind turbines have been developed, unconventional well pads can generate comparable energy in a fraction of the time and space. For example, BP constructed 90 wind turbines across 9,000 acres to power 47,000 homes per year. In comparison, a single 3-acre unconventional gas well pad can generate that same amount of energy in 48 hours! When space utilization and energy potential is considered traditional energy generators are far superior to the “renewables” or “alternatives” being forced on Pennsylvania through poor energy policy.
Mr. Stark expressed that the barriers on extraction and pipelines imposed by neighboring states like New York preventing Pennsylvania energy from reaching their markets, thus hindering PA's industrial growth and impacting our regional energy reliability. The Commonwealth has ample resources to power ourselves and our neighbors, yet New York has imposed policies that hamstring their own growth as well as the Commonwealth’s potential. Currently, PA natural gas can be harvested in Susquehanna County to be used in Japan within 28 days of leaving the ground. With this being the case, why must it be so difficult to provide our resources to NY? The answer is simple, poor energy policy that negatively impacts grid reliability and sustainability.
The House Republican Policy Committee hearing provided valuable insights from experts in the energy industry, raising significant concerns about the proposed energy tax and its impact on electrification efforts and grid reliability. Stakeholders from PJM Interconnection, GT Power Group, Pennsylvania Building & Construction Trades Council, and Coterra Energy emphasized the need for a balanced energy policy that considers the grid's integrity and the competitiveness of in-state energy producers. We cannot be forced to pay more for less. Less energy, less reliability, and less sustainability.
As Pennsylvania navigates its energy future, a comprehensive approach that addresses environmental goals while preserving the stability and efficiency of the electric grid remains crucial to ensuring a sustainable and prosperous energy landscape. As we continue to electrify our world the House Republican Caucus will work to ensure that sound energy policies that empower our people and make responsible use of our resources guide the future of the Commonwealth.