How and Why Local Governments Should Shape the Energy Systems of the Future
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Local governments face increasing challenges in meeting their community’s clean energy goals while supporting affordable electricity and a reliable electric grid. Now more than ever, it is important for local governments to engage in the decision-making that establishes how our energy systems look in the future. The story across the United States is one of the increasing challenges of delivering clean, affordable, and reliable electricity. These challenges include significant forecasted load growth, an aging electric grid, a transition to carbon-free generation sources, the introduction of new and digital technologies, an unclear and ever-changing federal policy landscape, and an inconsistent patchwork of state policies and electric utility regulations. State electric utility regulators are fundamental to the decision-making process that determines electricity prices, generation sources, and grid upgrades. Unfortunately, electricity is at risk of becoming less clean, less affordable, and less reliable. Local governments have a critical role and responsibility to engage with their state electric utility regulators to shape the future of energy policy in their region. Local government voices can help ensure an equitable clean energy transition as a part of the evolution of the future electricity grid.
How and Why Local Governments Should Shape the Energy Systems of the Future
- 1. The Time is Now: How and Why Local Governments Should Shape the Energy Systems of the Future 8/13/2025
- 2. WRI is a global research organization working to improve people’s lives, protect nature and halt climate change.
- 3. Agenda 1 Why now? 2 Why local governments must get involved in state and regional energy system decisions 3 Perspectives from Boise, ID & Charlotte, NC 4 Q&A 5 Wrap up & how to get involved
- 4. 4 Today’s speakers Heather Bolick Chief Sustainability & Resilience Officer City of Charlotte, NC Katie O'Neil Energy Program Manager City of Boise, ID Lacey Shaver Director, US City Clean Energy Transition World Resources Institute Bill Eger Founder & Principal ETHOS Sustainability
- 5. Why now? 01
- 6. 6 Load growth, federal policy changes, geopolitical conflict dynamics, tariffs and market cycles are creating a highly uncertain future for the electricity system. Comparison of US Data Center Load Growth Estimates Source: BNEF Helen Kou, LinkedIn.
- 7. Expected rapid load growth is creating challenges for an aging grid and consumers 7 Load growth is placing new demands on our energy system not seen since early 2000s. The main drivers of this new demand era are large, energy-intensive commercial and industrial loads, namely data centers and re- shored manufacturing. Virginia, Georgia, Texas, and the Southwest are experiencing massive growth in data centers. Ohio, Michigan, and the Carolinas are seeing new re- shored manufacturing raising demand. Residential and transportation electrification are also playing a role in markets like California, New York, and New England. Source: NERC 2025 State of Reliability
- 8. 8 Electricity prices are also rising rapidly Increased load threatens to push market prices higher and require costly new infrastructure. A recent study from PJM's Market Monitor found that forecast load growth from data centers contributed to a $9.4 billion increase in capacity market revenue in 2024, which will be passed on to ratepayers. 77 million American households reduced or forwent basic necessities such as medicine or food in order to pay an energy bill at least once last year. Source: Electricity Data Browser, US Energy Information Administration
- 9. 9 Shifting policy landscape for renewables has implications for future grid Renewable energy like solar and wind are the quickest and more affordable to deploy to meet growing load. Policy barriers to renewables deployment include permitting barriers, federal funding reductions, incentives reduced. Princeton finds the One Big Beautiful Bill Act will cut cumulative clean energy investment by $500 billion between 2025 and 2035. Rhodium analysis shows new clean power generating capacity reduced by 53-59% by 2035 from federal tax cuts. Nearly 29 gigawatts less solar; 43 gigawatts less wind by 2030. Princeton University REPEAT Project: https://zenodo.org/records/15801701
- 10. 10 Decisions made today by utilities, public utility commissioners, state policymakers, and wholesale market operators will impact local governments and communities far into the future. Utility Planning Processes Utility Procurement Requirements Utility Performance Incentive Mechanisms (PIMs) Utility Cost Recovery and Rate Mechanisms Clean Energy Access for Large Buyers Clean Energy Access for Communities Structure & Function of Existing Power Markets Transmission Planning
- 11. 11 Local government voices are needed to ensure that energy systems decisions reflect community needs and priorities. Reliability How do policymakers manage growing energy demand while ensuring consistent and reliable electric service? Affordability How can policymakers ensure that new load growth does not lead to higher energy bills for ratepayers? Clean Energy How do policymakers ensure that new energy demand is being met by clean energy and is contributing to overall GHG emissions reduction? Economic Growth How do regions attract new energy demand investments that stimulate economic growth and provide good paying jobs? Equity How do policymakers ensure that load growth is not adversely impacting disadvantaged communities? Transparency How can policymakers make sure regulators, stakeholders, and the public have the information and ability to comment on and make decisions about load growth?
- 13. Why local governments should get involved in state and regional energy system decisions 02
- 14. 14 Local governments have a stake Large Energy Users Represent Diverse Community Needs and Interests Local Policymaking o Land Use Decisions o Economic Development Opportunities Thriving Community & Wellbeing o Affordability o Public Health o Lighting and Experiences Public Safety o Emergency Response o Critical Infrastructure Resiliency Host Utility Infrastructure Sustainability and Climate Action o Clean and Renewable Energy o Green and High-performance Building Policies / Electrification o Transportation Electrification
- 15. Decisions are happening without critical local government perspectives 15 • Missed opportunities to represent local government or community interests • Overlooked or inadequately addressed local needs and interests • Insufficient planning for clean energy transition, electrification, load growth • Missed opportunities to hold utilities accountable
- 16. Many engagement opportunities 16 Rate Cases Integrated Resource / Integrated Distribution Plans Special Tariffs or Programs (ex. Energy Efficiency, Green Tariffs, Large Loads) Transmission Planning Resource Procurement Performance and Reporting Rulemakings Workshops and Conferences: Technical or Policy Generation and Transmission Siting and Development / Certificate of Public Convenience and Necessity (CPCN) Capital Planning and Reliability Climate Resiliency Wildfire Management Planning Resource Adequacy Market Design and Operation Utility Relationship Management State Policy
- 17. 17 What holds local governments back? • Uncertainties of direct benefit to the city or community • Other priorities and goals • Complexity of the issues and need for capacity building • Challenges distilling highly technical concepts to non-experts • Levels of time and resource intensity • Role and authority for local government's authority to engage • Fears of political risks or utility backlash • Hesitations to engage without aligned partners • Volume of dockets, issues, information
- 18. Audience poll #2 & #3 18
- 19. 19 Precedent for engagement 19 • Local governments have a long history of engaging dating back to the emergence of modern energy systems into the expansion and modernization of cities and communities • Growing number of local governments across the US engaging in rate cases, integrated resource planning, green tariff development, reliability, transmission planning, energy efficiency, data center loads, wildfire management, etc. • Growing number of local government coalitions collectively approaching state regulatory and policy, and regional markets engagement • Increasing levels of resources to draw upon: WRI, Regulatory Assistance Project, Sustainable FERC, Powerlines, RMI, and many more
- 20. Perspectives from Boise, ID & Charlotte, NC 03
- 21. 21 Panelists Katie O'Neil Heather Bolick Energy Program Manager City of Boise, ID Chief Sustainability & Resilience Officer City of Charlotte, NC
- 22. Q&A 04
- 23. Wrap-Up 05
- 24. 24 Join us for the next webinar in the series Save the date! Power Moves: Local Government Strategy for Utility & PUC Collaboration Tuesday, October 7 3:00 – 4:00 pm ET Details and registration will be available soon and will be sent to attendees of this webinar.
- 25. 25 WRI is helping local governments and communities to engage in energy systems decisions Over the coming years, we will be offering education, developing resources, and providing technical assistance for local governments to engage with electric utilities, public utilities commissioners, and state energy offices and policymakers to shape an affordable, resilient, clean energy future. Utility Planning Processes Utility Procurement Requirements Utility Performance Incentive Mechanisms (PIMs) Utility Cost Recovery and Rate Mechanisms Clean Energy Access for Large Buyers Clean Energy Access for Communities Structure & Function of Existing Power Markets Transmission Planning
- 26. 26 Get in touch 26 If you have any questions, please reach out to Lacey Shaver at [email protected] and Bill Eger at [email protected]. Sign up for WRI's U.S. Clean Energy Pulse Newsletter, a quarterly round-up of research, news and policy updates on accelerating clean energy deployment, transportation electrification, and the transition to a low-carbon grid in the United States. https://www.wri.org/subscribe-us-clean-e nergy-pulse-newsletter Footer
- 28. Thank you!
Editor's Notes
- #1: Photo: Minnesota Solar Challenge https://www.flickr.com/photos/minnesotasolarchallenge/
- #6: In particular, energy load is growing rapidly. The exact scale and impact of this growth are a major source of uncertainty. This chart on the left comes from BNEF, and it shows the various estimates of load growth from data centers alone by 2030. You can see that the estimates vary widely.