Today’s LiveWire Spotlight looks at the DOE’s Staff Report concerning the extent to which government mandates, subsidies, and tax policies adequately incentivize resource owners to take steps that reduce grid risk.  It identifies several critical issues that indicate that the existing regulatory model does not fully account for electric system resiliency and environment-friendly generation mandates.

NERC’s concepts of Essential Reliability Services and Risk-Based operation had a major influence on the DOE’s staff’s findings.  It appears likely that any follow-up actions by the Secretary will be consistent with the ERO’s Strategic Plan.