With many utilities already moving ahead to deploy smart grid technologies, FERC is also proposing an interim rate policy for such efforts. FERC proposes to allow utilities to recover their costs for smart grid efforts, so long as the systems do not adversely affect the reliability and security of the grid. However, such systems should have the ability to be upgraded to meet future standards. FERC would also require the utilities to share information on their projects with the DOE Smart Grid Clearinghouse, which was authorized by the American Recovery and Reinvestment Act but has not yet been established. FERC will accept comments on its proposed policy statement and action plan for 45 days after their publication in the Federal Register. See the proposed policy statement and action plan (PDF 103 KB).
Insurance Regulators Require Disclosures of Climate Change Risks
Insurance companies will need to educate themselves and their policyholders about the risks of climate change under a new mandatory requirement of the National Association of Insurance Commissioners (NAIC). The new requirement, adopted last week, mandates that large insurance companies disclose to regulators the financial risks they face from climate change, as well as actions the companies are taking to respond to those risks. The scope of issues covered by the new disclosure requirement is broad, reflecting the many ways in which climate change will impact the insurance industry. In addition to reporting on how they are altering their risk-management and catastrophe-risk modeling in light of the challenges posed by climate change, insurers will also need to report on steps they are taking to engage and educate policymakers and policyholders on the risks of climate change, as well as whether and how they are changing their investment strategies. See the NAIC press release.
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Kevin Eber is the Editor of EREE Network News, a weekly publication of the U.S. Department of Energy's Office of Energy Efficiency and Renewable Energy (EERE).
