Full Committee Hearing to Examine the State of the Bulk Power System

“Congress should enact a reform that would retain the benefits of the public grid while allowing fast-moving consumers to take advantage of entrepreneurial speed. One such policy is Consumer Regulated Electricity (CRE), which would enable speed to power for the customers who value it most while not burdening the existing grid.

As laid out in more detail in a Cato briefing paper, CRE “is a reform that would allow privately financed, off-grid electric utilities to serve new customers under voluntary contracts. These utilities would be physically ‘islanded’ from the regulated grid and would not be subject to economic regulation at the state or federal level. Because they would not interconnect with incumbent systems, CRE utilities would impose no costs, reliability risks, or stranded-asset exposure on existing customers. CRE is thus a policy proposal that offers a practical and simple tool for policymakers.“

https://www.cato.org/testimony/full-committee-hearing-examine-state-bulk-power-system#v-conclusion