The 50 States of Grid Modernization Q2 2023: States and Utilities Move Ahead on Performance-Based Regulation during Q2 2023

Raleigh, NC – (July 27, 2023) The N.C. Clean Energy Technology Center (NCCETC) released its Q2 2023 edition of The 50 States of Grid Modernization. The quarterly series provides insights on state regulatory and legislative discussions and actions on grid modernization, utility business model and rate reforms, energy storage, microgrids, and demand response.

The report finds that all 50 states, as well as the District of Columbia and Puerto Rico, took actions related to grid modernization during Q2 2023 (see figure below), with the greatest number of actions relating to energy storage deployment (50), utility business model reforms (47), distribution system planning (34), interconnection rules (33), integrated resource planning (25), and wholesale market rules (22).

A total of 539 grid modernization actions were taken during Q2 2023. California, Texas, Maine, New York, Massachusetts, Minnesota, and New Jersey took the greatest number of actions during the quarter, followed by Connecticut, North Carolina, and Michigan.

Q2 2023 Legislative and Regulatory Action on Grid Modernization

The report discusses three trends in grid modernization actions taken in Q2 2023: (1) states and utilities moving forward on performance-based regulation; (2) growing interest in long-duration battery storage; and (3) utilities including storage capacity additions in integrated resource plans.

“Both legislators and regulators showed a continued interest in integrated resource planning (IRP). Policymakers in several states, including Nevada, Virginia, and Washington considered revisions to the IRP process,” noted Emily Apadula, Policy Analyst at NCCETC. “Meanwhile, policymakers in North Carolina and Oregon considered including other required plans within the IRP itself.”

The report notes the top five policy developments of Q2 2023 were:

  • The release of South Carolina’s energy market reform study;
  • Maryland lawmakers adopting an energy storage target;
  • Connecticut regulators approving a performance-based regulation framework;
  • Maine legislators initiating a distribution system operator design study; and
  • The Louisiana Public Service Commission Staff proposing rules for utility grid resilience plans.

“This quarter, the potential prospects of a Southeast regional transmission organization (RTO) saw additional support thanks to a South Carolina study released earlier in the quarter recommending the state — and others in the region — develop a Southeast RTO; or join an existing RTO, among other potential reforms,” observed Justin Lindemann, Policy Analyst at NCCETC. “This comes months before an early July federal court ruling this year vacated FERC approval of the Southeast Energy Exchange Market — a proposed regional platform to buy and sell power close to energy consumption, supported by utilities representing more than 36 million retail customers.”

View the 50 States of Grid Modernization 2023 Q2 Quarterly Report Executive Summary

View and Purchase the 50 States of Grid Modernization 2023 Q2 Update FULL Report

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The N.C. Clean Energy Technology Center, as part of the College of Engineering at North Carolina State University, advances a sustainable energy economy by educating, demonstrating and providing support for clean energy technologies, practices and policies. It serves as a resource for innovative, sustainable energy technologies through technology demonstration, technical assistance, outreach and training. For more information about the  Center, visit: Twitter: @NCCleanTech

Media Contact, Shannon Helm, NCCETC,