Electric Resilience Toolkit

By the Sabin Center for Climate Change Law, the Environmental Defense Fund, and the Initiative on Climate Risk and Resilience Law

The Initiative on Climate Risk & Resilience Law has published an Electric Resilience Toolkit, a compilation of reports describing how electric companies can “engage in the process of climate resilience planning” and how resilience planning can be legally enforced to ensure “reliable service at just and reasonable rates.” Electricity infrastructure is at high risk from the impacts of climate change, which has significant implications for utilities and customers alike. Resilience planning involves assessing these risks and developing plans to “reduce vulnerabilities.” Preparing for future climate impacts is vital to ensure our lights stay on and to keep electric and gas rates affordable; utilities are legally obligated to take all measures necessary to achieve this.

Key Findings:

• What Is Resilience? A resilient electric grid is one that can withstand and quickly bounce back from disruptions.
• What Does It Look Like? Utilities should regularly take ‘inventory’ of all their facilities, assets, and potential new investments, and determine individual risks posed to each based on future climate patterns, which can be measured through localized climate modeling (downscaling). This provides information on how utilities can most effectively reduce system vulnerabilities (e.g., hardening or relocating assets).
• Why Does It Matter? When utilities do not conduct resilience planning, and their assets suffer damage from the impacts of climate change, it is not uncommon for the utility to attempt to pass recovery costs onto customers by raising rates in ratemaking proceedings.
• How Is It Enforced? Certain legal and regulatory cases have set a precedent that allows intervenors to point to several ratemaking principles “to support the argument that electric utilities must engage in climate resilience planning.” If there is evidence that a utility failed to adequately prepare for known climate risks, they may not be allowed to pass costs onto customers’ bills.

Ratemaking and resilience planning proceedings take place at the Louisiana Public Service Commission (LPSC), and anyone can monitor and get involved.