Senator Hoeven was one of 22 U.S. Senators who recently sent a letter to chairman Chatterjee of the Federal Energy Regulatory Commission (FERC). The letter outlined the need to amend FERC’s proposal to allow local control over third-parties' aggregation distributed energy resources (DER), such as solar and battery panels, and sell electricity on the wholesale market. “While allowing DERs into the wholesale market can encourage innovation, the aggregation of these resources should be determined at the local and state level to ensure that there is no adverse impact on reliability or higher costs for consumers,” said Senator Hoeven. “This local control helps to better ensure that consumers have access to safe, reliable and affordable energy.”

The senators commented that FERC’s proposal could lead to disruptions and the overloading of distribution lines that were not designed for independent DER aggregations. It could also result in increased costs for consumers should distribution systems require adaptations to accommodate DER aggregations. Further, the senators warn that the proposal could lead to increased administrative costs due to implementation of new rate structures in order to allocate increased capital and operating costs among utility consumers.