Power system in the northeast and mid atlantic due to increasing Winter Weather events, including the bomb cyclone. I would like to start by calling on the Ranking Member to give her opening statement. Thank you, chair, and good morning to everyone. Im sure that senator murkowski will be here shortly. As some people may know, a 7. 9 magnitude earthquake hit off the coast of alaska, impacting co kodiak and parts of the Pacific Northwest with tsunami warnings that were issued for activities that were expected, and those warnings for tsunami waves have been recalled but no doubt im sure the senator is dealing with lots of things this morning related to that and other issues. So, impa want to thank our witnesses, chairman mcintyre and mr. Walker, for being here and many of the staffs that people have here that were glad were back in operation. So we look forward to hearing from all our witnesses on the subject of the reliability of the grid. And its performance. Last year, secretary perry and his staff reviewed the liability of the electricity grid in the light of the changing fuel mix, and i was relieved when the saw the staff report in august, which i thought was very balanced. It carefully distinguished between the terms reliability and resilience and described emerging techniques to integrate more renewable resources, and it also recommended grid operators adopt resell yailience metrics needed to be developed. Unfortunately, when secretary perry filed his report as a proposal to ferc, i was a little more alarmed. The proposal ignored the conclusion of the departments own staff. It was a transparent attempt, in my opinion, to prop up the administrations favorite kinds of energy. There were many problems with this proposal. And never defined resilience. It picked a single attribute of power plants fuel stored on site and elevated it above all other factors. It promised full recovery for coal in some states that had promised to follow a market model years ago but the biggest problem was that it would hit consumers with additional cost to multiple independent assessments. Bailing out coal plants just isnt bad policy, it was breathtaking raid on the consumers pocketbooks. The pgm market monitor found the secretarys proposal could nearly double the wholesale cost of electricity so i want to applaud chairman mcintyre and the whole commission for unanimously rejecting the secretarys proposal. At the heart of that rejection, i believe, are consumers. I think the commission wisely reviewed the federal power acts just and reasonable standard for electricity rates and found the secretary had not met this burden in proving the current rules are unjust and unreasonable. Consumers couldnt have asked for a better defense. Given some of the troubling stories about coal interests and lobbying the department, it has never been more important for ferc to maintain its tradition of independence. I hope the secretarys proposal hasnt given resilience a bad name. The difference between the grids recovery from hurricanes in florida and texas versus puerto rico shows that resilience really does affect the lives and quality. It deserves more attention. So im pleased that we have allison testifying today, along with our other witnesses. She serves on the National Academys committee that wrote an excellent report last summer on Grid Resilience and id like to submit that report for the record. It also has a series of concrete recommendations to congress, to ferc, and the department of energy that i hope we can explore today. So again, madam chair, thanks to all the witnesses for being here and calling this hearing. Thank you, senator cantwell. My apologies to our witnesses as well as committee members. Weve had a busy morning in alaska this morning, so im told all is well, but i appreciate more than ever the value of things like the earthquake and tsunami Early Warning systems. So, its important that theyre there, and that they were actually operating now that the government is back to order. Last week, i outlined the busy agenda that well have this year and we will maintain our focus on legislation and nominations oversight is also very critical part of our role. Were obligated to examine the performance of agencies under our jurisdiction. Todays an opportunity to gauge whether federal policy is helping or hindering improvements in Energy System performance. While it may not have been up to alaskas standards, the cold snow and ice endured by many in the lower 48, especially along the eastern seaboard, was quite notable over the holidays and into the new year. While the worst of it occurred over and on the shoulders of a holiday period, and we didnt reach the extremes felt in the 2014 polar vortex, we did experience a socalled bomb cyclone event. I understand that a bomb cyclone is a cyclone storm system in which the Pressure Drops precipitously in a short period of time. Apparently these happen relatively off the northeast coast but this recent storm was a record breaker with the largest Pressure Drop in a 24hour period since 1976. As such, it presented a kind of informative stress test for the electric power system. Now, ive often said that federal law and policy must enable energy to be affordable, clean, diverse, and secure. With this hearing, we return to a subject ive been following keenly since at least 2010 about how changes in the nations electric grid and the mix of primary electricity sources are stressing system reliability and what federal changes may be necessary to address those stresses. The secretary of energys notice of proposed rule making issued in september and the recent ferc order in response were focused on these same issues. In 2014, following the polar vortex, we held a similar hearing to examine challenges to the electric system. I said then that we needed to redouble a properly scaled and continuously improving approach to grid reliability and security. Im pleased to say to see that todays testimony shows that there were many Lessons Learned from that extreme weather event. For example, there now appears to be improved coordination between the electric and the gas systems. The rtos and ferc have reformed market rules and improved business practices. Nerc has updated its approaches and thats all good news. The bad news is that weve not addressed the more difficult and fundamental challenges for electric and Gas Infrastructure. For example, gas Pipeline Infrastructure remains too constrained. Broader policy changes are not sufficiently taking into account increasing risks that in future years system operators may have to turn to intentional service interruptions, otherwise known as load shedding or rolling brownouts or blackouts, to manage certain peak periods. One of our witnesses will speak about the situation in new england, which in some respects could serve as a harbinger of challenges in other parts of our nation. We must ensure that our nations natural gas supply, which is a boon to our economy and to our National Security, can be reliably delivered to a changing marketplace. At the same time, its not clear what the reliability and Economic Impacts will be of a grid whose primary electricity resources are less diverse over time as base load nuclear and coal units continue to retire. Meeting all of these challenges will also strengthen in competition for the betterment of Energy Customers should be a shared priority. After all, promoting competition has been a tenet that has enjoyed wide bipartisan support for more than two decades. This morning, we will hear from two agencies under our jurisdiction, ferc and the department of energy. Well hear from the heads of three regulated entities with quasiregulato quasiregulatory responsibilities, nerc and the two Regional Transmission Organizations, pjm and iso new england. We also have a member of the committee of the National Academy of science, engineering, and medicine with us. I welcome each of you to the committee this morning. Look forward to your testimony. I would ask that you try to limit your testimony this morning to about five minutes. Your full statements will be included as part of the record. This morning, we are joined by the honorable Kevin Mcintyre, whos the chairman of the federal Energy Regulatory commission. This is the first time that you have appeared before the committee in your capacity as chairman. We welcome you. The honorable bruce walker is also with us as the assistant secretary for the office of electricity delivery and Energy Reliability at the u. S. D. O. E. Good to see you again, bruce. Mr. Charles barridesco is the ceo for nerc, we welcome you. Ms. Allison clements is the president of good rid, llc. Senator cantwell has mentioned your contributions. We thank you. Mr. Andrew ott is the president and ceo for pjm and mr. Gordon van welie is the president and ceo of iso new england. Welcome to each of you. Chairman mcintyre, if you would like to begin with your comments this morning. Yes, senator. Chairman murkowski, Ranking Member cantwell and members of the committee, thank you for the opportunity to appear before you today to discuss the performance of the electric system during the recent weather events. I am honored to serve as the chairman of the ferc. Our Commission Takes seriously the responsibilities that congress has entrusted to us, concerning the reliability of the bulk power system in this country. We are still receiving and reviewing the data related to the performance of the bulk power system during the cold weather event that has taken place over the past month. Based on what we know to date, it appears that notwithstanding stress and several regions, overall, the bulk power system performed relatively well amid challenging circumstances. Looking forward, we must both learn from this experience and remain vigilant with respect to challenges to the reliability and resilience of the bulk power system. The performance of the bulk power system during the 2014 winter event you have referred to, now commonly known as the polar vortex, did provide useful context for understanding the performance of the bulk power system under the more recent winter events of the past month. During the 2014 polar vortex, much of the u. S. Experienced sustained and at times extreme cold weather. The challenges presented by these conditions and high electric demand were compounded by unplanned generator shutdowns. Of various fuel types. These combined circumstances tested grid reliability and Power Supplies and contributed to high electricity prices. Drawing on that experience, ferc took numerous actions, as you have referenced, to address reliability and resource performance issues. For example, the commission directed Regional Transmission Organizations and independent system operators or rtos and isos, as we usually call them, to report on fuel assurance issues, and the Commission Revised its regulations to enhance coordination between the natural gas and the electric industries in light of the increasing use of natural gas as fuel for electric generation. For certain regions, the Commission Approved capacity market reforms that are intended to increase financial incentives for improved resource performance and to penalize nonperformance or poor performance. The Commission Also approved temporary winter reliability programs in new england. Turning to the winter event, Winter Weather events of the past month, it is useful to consider the impact of the recent weather events on both the provision of service and the associated costs of that service. Importantly, there were no significant customer outages that resulted from failures of the bulk power system, generators, or transmission lines. While there were no significant reliability problems during this recent cold weather event, wholesale Energy Prices were high, reflecting the stress on the system. Higher wholesale Energy Prices that accurately reflect fuel costs and Current System conditions can be beneficial, sending important signals that drive operational and Investment Decisions for both utilities and consumers. We also recognize that higher wholesale Energy Prices are ultimately born by retail customers. And so the commission is attentive to the potential for behavior that takes advantage of extreme weather events. Just as the commission and the rtos and isos drew lessons from the polar vortex in 2014 and applied them in ways that better prepared us for this recent cold weather event, we will examine these more recent events very carefully and seek to learn from them. I would like to emphasize a few points that the commission made in an order issued a couple of weeks ago on the issue of resilience, more generally. Referred to by Ranking Member cantwell in her opening remarks. On january 8th, the commission responded to the proposed rule on grid reliability and resilience pricing, submitted to the commission by the secretary of energy. And we initiated a new proceeding to further explore resilience issues beginning with the rtos and the isos. As we stated in our order, we appreciate the secretary reinforcing the importance of the resilience of our bulk power system. Its an issue that warrants further attention, and as we said in our order, prompt attention. The goals of our new proceeding are, first, to develop a common understanding among the commission and industry and others as to what resilience of the bulk power system actually means and requires. Second, to understand how each rto and iso assesses resilience within its geographic footprint. And third, to use this information to evaluate whether Additional Commission action regarding resilience is appropriate at this time. Commission directed each rto and iso to submit within 60 days of our order specific information regarding resilience of the bulk power system within those respective regions, and we invited other interested entities to file areply comment within 30 days after the rtos and isos submit their comments. We expect to review the additional material and promptly decide whether Additional Commission action is warranted to address grade resilience. In our january 8th order, the Commission Also recognized that the concept of resilience necessarily involves issues that extend beyond our commissions jurisdiction, such as Distribution System reliability and modernization. For that reason, we encouraged rtos and isos and other interested entities to engage with state regulators and other stakeholders to adjust resilience at the distribution level and more broadly. I assure you that reliability and the resilience of the bulk power system will remain a priority of the ferc. I look forward to answering your questions. Thank you, chairman mcintyre. Assistant secretary walker, welcome. Thank you. Chairman murkowski, Ranking Member cantwell, and distinguished members of the committee, thank you for the opportunity to discuss the issue of Grid Resilience during the recent cold weather affecting the northeast United States. Just two months ago, i testified before this Committee Regarding the responsive Recovery Efforts in puerto rico and the u. S. Virgin islands. Secretary perry and the administration remain committed to this restoration. The topic of todays hearing is timely. The resilience and reliability of the Energy Sector are Top Priorities of the secretary and a major focus of the department of energy. In fact, the first study requested by the secretary was the staff report to the secretary on electricity markets and reliability. The report examined the evolution of the wholesale electric markets, the effect on grid reliability and resilience as it relates to capacity, the connection between regulatory burdens and the retirement of base load power plants. Many of the findings were borne out of the recent Severe Weather event across the nation. The last several months have been quite demanding on the Energy Sector. From an extremely active Hurricane Season to the 2018 deep freeze, we have confronted challenges that tested the resilience and reliability of our Energy Infrastructure in different ways. During the recent cold snap from late december 2017 to early january, the northeast saw a record low temperatures for several days. However, customer outages were minimal. What was apparent during this weather event was the continued reliance on base lode and a Diverse Energy portfolio. Without action, we cannot guarantee the resilience of the electric grid. The grids integrity is maint n maintained by an abundant and diverse supply of fuel. Resilience for our electric infrastructure has become more important than ever as major parts of our economy are now totally dependent on electricity. Even momentary disruptions in power quality can result in Major Economic losses. At the same time, we are in the early stages of large transformation of our electric supply system with this process of change likely to continue for man