Dive Brief:
- Duke Energy is considering going a step beyond subscribing to new emergency services provided by startup Grid Assurance, and may also be taking an equity position in the new company through an unregulated subsidiary.
- Eight energy companies last month announced their intention to stockpile power transformers, which can be difficult to design, acquire and replace, and provide them to subscribers in the event of an emergency.
- According to Charlotte Business Journal, Duke has indicated to North Carolina regulators that it would likely have regulated, affiliated customers of the business it also owns.
Dive Insight:
Duke Energy Carolinas and Duke Energy Progress would likely subscribe to a new emergency services venture, but the utilities' parent company also wants to be an investor.
That would not be unheard of, Charlotte Business Journal points out – the company will be the largest customer on the proposed Atlantic Coast Pipeline, of which it will also own a portion. But the arrangement would draw additional scrutiny from regulators, though the company stressed no formal agreements have been signed.
Along with seven other companies, Duke last month filed with FERC that the new services provided by Grid Assurance would be one way companies could address reliability concerns. Subscribers would be able to call on equipment when they experience "certain events, such as physical attacks, electromagnetic pulses, solar storms, cyberattacks, earthquakes and severe weather events," the new company said in a statement.
In addition to Duke, Grid Assurance is primarily led by American Electric Power, with Berkshire Hathaway Energy, Edison International, Eversource Energy, Exelon, Great Plains Energy and Southern Co. also on board.
Grid Assurance will not be regulated by FERC, but petitioned federal regulators to clarify that its service "can be part of a transmission-owning entity’s strategy to effectively address grid resiliency mandates."
Duke made its filing with North Carolina regulators because it intends to file a petition in support of the new venture, and is required to inform the state's commission when it will make filings with FERC.
