Insights from policy experts: Marc L. Spitzer, Partner at Steptoe LLC and former FERC Commissioner
In this issue, we’re pleased to share a perspective from Marc L. Spitzer, Partner at Steptoe LLC and former FERC Commissioner, on reliable electric service and the regulatory compact.
Over the last few months WIRES has been active on the regulatory front, filing comments with FERC, DOJ, OMB, and the FTC. Our community continues to grow, and we have welcomed several new Associate Members: Atwell, Jacobs Solutions, and Osmose.
Looking ahead, we’re preparing to welcome FERC Commissioner Judy Chang as the keynote speaker at our Summer Member Meeting in early July, at the Woodstock Inn, a picturesque location among the Green Mountains of Woodstock, Vermont.
Reliable Electric Service Requires a Renaissance of the Regulatory Compact
Marc L. Spitzer, Partner at Steptoe LLC and former FERC Commissioner
Delivery of reliable and affordable electricity to U.S. homes and businesses is depicted in the aphorism of French author Alphonse Karr -- “plus ça change plus c’est la même chose” -- unartfully translated as “the more things change the more they stay the same.” Unartfully because Karr’s thesis is not absolute denial of change, the discredited doctrine of stasis. Rather, he proclaimed that while the future is unpredictable, certain immutable principles endure.
The Regulatory Compact, evolved from law and practice, is an immutable principle of electric service. The utility, public or private, assumes the obligation to serve in return for a franchise at judicially determined, just-and-reasonable rates. The durability of the Regulatory Compact through 140 years of dizzying legal and technological transformation to the present day confirms the vitality of “plus ça change.”
In 1882 Edison’s Pearl Street facility presaged the private utility model. Ad hoc, anarchic delivery of electricity succumbed to the Progressive Era and in 1907 legislatures in Wisconsin and New York enacted regulatory regimes enforced by independent, quasi-judicial commissions. The New Deal expansion of federal authority plugged the interstate commerce gap with the Federal Power Act, Public Utility Holding Company Act (1935) and Rural Electrification Act (1936), inter alia.
The Regulatory Compact for electricity, informed by the state integrated resource plan (IRP), produced the marvel that is the U.S. grid. U.S. utilities delivered electricity that powered American industrialization and associated prosperity, including victory in two World Wars. It is essential to modern life.
The Regulatory Compact adapted to dramatic changes in power generation technology and fuel mix. Central station facilities replaced small, inefficient wood-burning plants. Public power constructed dams of Woody Guthrie song and American legend while investor-owned utilities erected transmission lines throughout the U.S. to deliver affordable power to all. The Regulatory Compact proved remarkably resilient in addressing novel conditions, as envisioned by Monsieur Karr.
I vividly recall from childhood the Northeast Blackout of 1965 and high school the 1973-74 oil embargo. The former produced voluntary reliability standards, the latter substitution of fuel oil by coal and nuclear power. Congress expanded the Regulatory Compact with enactment of the Public Utilities Regulatory Policies Act of 1978 (PURPA). The Regulatory Compact grew more complex as federal oversight of power generation’s environmental impacts trespassed upon traditional economic regulation of wholesale and retail prices. The torrent of change continued as gas wellhead decontrol and FERC Orders 636 and 888 unleashed competitive power generation. Industry responded with technological innovation, notably combined cycle gas turbines. By the 21st Century the Regulatory Compact had transformed U.S. electricity in ways unimaginable in 1882.
My government experience witnessed adjustments arising from changed circumstances. As a State Senator in the 1990’s, I saw Arizona transition from coal to gas-fired power to comply with environmental regulations, departing from the “least cost” model. As an Arizona Commissioner amidst the California Energy Crisis, the maelstrom affirmed support for independent power and wholesale competition via IRP, but compelled withdrawal from retail restructuring.
The electric industry commits to reliable and affordable service for truly exponential load growth, mindful of environmental concerns. However, disquieting state actions have impaired the Regulatory Compact in organized markets. I’ve sat in federal and state regulatory chairs. States are not and should not be bound to the FERC stricture of fuel neutrality. States may choose to subsidize preferred resources, refuse to site fossil plants and restrict natural gas supply. Or they may do quite the opposite and limit renewables. IRP allows states to render such decisions transparently and fully bear their consequences. However, absent IRP a jurisdiction may “lean” on its neighbors, shirk accountability for reliability and affordability, export harms, and then blame the RTO.
My recommendation is holistic consideration of resource adequacy. The pristine competitive model is ideal to solve for one variable – price. The present circumstances require solutions for many variables simultaneously. Fuel mix, job creation and data centers are issues best addressed through a process designed to resolve policy as well as economic questions. The Regulatory Compact marries practical politics with keeping the lights on. As past is prologue, plus ça change, plus c’est la même chose.
For additional insights from Marc Spitzer, be sure to read his recent commentary on ROFR: I Voted to Elimate ROFR, and That Was Unwise.
5/12/25 – WIRES OMB Deregulation RFI Comments
4/3/25 – WIRES, EEI and GridWise Alliance Defend FERC’s Transmission Incentives Policy as Demands Increase
See all filings on the WIRES website.
2025 WIRES Summer Member Meeting – July 9-10, 2025
WIRES is looking forward to gathering with our members and invited guests July 9-10 at the Woodstock Inn in historic Woodstock, Vermont, for our Summer Member Meeting. We're honored to welcome FERC Commissioner Judy Chang as our keynote speaker. The program will also feature two dynamic panel sessions focusing on GETS and other advanced transmission technologies, and the significant resilience challenges facing today’s grid.
For more information, visit our Summer Member Meeting event page.
2025 WIRES Spring Member Meeting – April 2-3, 2025 – Colorado Springs, CO
WIRES members and guests praised the stunning scenery and thoughtful dialogue that marked the WIRES Spring Member Meeting at The Broadmoor Hotel in Colorado Springs. Lanny Nickell, CEO of Southwest Power Pool, joined us as the keynote speaker. Members welcomed Lanny’s insights into the planning and priorities behind SPP’s historic Integrated Transmission Plan (ITP). The recently approved $7.7 billion portfolio includes 2,333 miles of new transmission and 495 miles of rebuilds. But, as Lanny emphasized, the more compelling numbers are the projected $88-95 billion of reduced APC (Adjusted Production Cost) savings. Put simply, for every $1 invested, the portfolio is expected to deliver $8-9 in value. We agree with Lanny – “That’s a good deal, a very good deal.”
To hear Lanny speak to these benefits, check out this short clip:
To listen to the entire recording of Lanny’s remarks, visit the event page or WIRES YouTube channel.
WIRES membership continues to grow, and we were delighted to welcome new Associate Members Atwell, Jacobs, and Osmose this quarter:
Atwell’s Power & Energy team delivers comprehensive solutions across the generation, transmission, distribution, and industrial markets, helping clients achieve their project and business goals. Our integrated team specializes in siting, GIS analysis, right-of-way acquisition, environmental permitting and compliance, engineering, and surveying — providing end-to-end support through every project phase. With thousands of successful projects completed, we offer insights that strengthen core operations, streamline project delivery, and address evolving challenges such as renewable energy integration, regulatory complexities, and infrastructure modernization. Atwell’s capabilities also include assessing aging transmission systems, developing stakeholder engagement strategies, and advancing projects with an emphasis on environmental stewardship and optimized land use. Discover the Atwell Difference.
At Jacobs, we challenge today to reinvent tomorrow—delivering solutions for the world’s most complex challenges. Our Energy team helps transform how energy is generated, moved, and used—advancing sustainability, decarbonization, and security in even the hardest-to-change industries. With deep cross-market expertise, we meet clients where they are, solving energy and business challenges in parallel. We don’t just envision the future—we build it.
See how at jacobs.com and connect with us on LinkedIn, Instagram, X and Facebook.
Osmose is the market-leading provider of transmission structure resiliency services, including total structure assessment, advanced data analysis, and solution engineering. We partner with electric utilities and telecommunications companies to provide a practical, cost-effective, and programmatic approach to extend the service life of structures, improve system reliability, and upgrade capacity.
Headquartered in Atlanta, Georgia, the company employs more than 4,000 people across the United States, Canada, Europe, and Australia. Osmose is a portfolio company of EQT Infrastructure. Learn more at www.osmose.com.
Visit our membership page, for more information on WIRES membership and list of members.
A sought-after speaker on transmission issues, Larry Gasteiger is regularly featured at industry and WIRES member events.
WIRES is widely regarded as a leading authority on transmission issues, with trade and business media regularly seeking out Larry’s insights on transmission policy and the latest developments at FERC.
Recent articles:
5/7/25 – E&E News – Nine Eastern states team up to build a bigger grid
5/6/25 – BloombergLaw – FERC member shakeup likely to provoke ripples instead of waves
4/18/25 – T&D World Live Podcast – Inside the future of transmission with Larry Gasteiger
4/8/25 – E&E – Trump to sign executive orders aimed at reviving coal
4/7/25 – RTO Insider – Groups ask FERC to axe languishing proposal to cut transmission incentives
4/7/25 – S&P Global – US transmission owners seek more policy certainty from FERC on grid incentives
4/7/25 – S&P Global – Former DOE, FERC leaders list concerns about agency independence, staff cuts
3/24/25 – RTO Insider – Utilities ask FERC to toss local planning complaint, others support it
2/19/25 – Axios – Trump FERC order could be big test for regulator
For a complete listing of earned media, visit the WIRES In the News page.
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