    [Senate Hearing 119-366]
    [From the U.S. Government Publishing Office]

                                                           S. Hrg. 119-366

                              PENDING LEGISLATION
    =======================================================================

                                    HEARING

                                   BEFORE THE

                             SUBCOMMITTEE ON ENERGY

                                     OF THE

                                  COMMITTEE ON
                          ENERGY AND NATURAL RESOURCES
                              UNITED STATES SENATE

                        ONE HUNDRED NINETEENTH CONGRESS

                                 SECOND SESSION

                                       on

                                    S. 465
                                    S. 1327
                                    S. 3034
                                    S. 3192
                                    S. 3269
                                    S. 3947

                                   __________

                                 APRIL 15, 2026

                                   __________

                           Printed for the use of the
                   Committee on Energy and Natural Resources

    [GRAPHIC NOT AVAILABLE IN TIFF FORMAT]

            Available via the World Wide Web: http://www.govinfo.gov

                                    __________

                          U.S. GOVERNMENT PUBLISHING OFFICE
    63-445                       WASHINGTON : 2026
    =======================================================================

                   COMMITTEE ON ENERGY AND NATURAL RESOURCES

                            MIKE LEE, Utah, Chairman
    JOHN BARRASSO, Wyoming               MARTIN HEINRICH, New Mexico
    JAMES E. RISCH, Idaho                RON WYDEN, Oregon
    STEVE DAINES, Montana                MARIA CANTWELL, Washington
    TOM COTTON, Arkansas                 MAZIE K. HIRONO, Hawaii
    DAVID McCORMICK, Pennsylvania        ANGUS S. KING, JR., Maine
    JAMES C. JUSTICE, West Virginia      CATHERINE CORTEZ MASTO, Nevada
    BILL CASSIDY, Louisiana              JOHN W. HICKENLOOPER, Colorado
    CINDY HYDE-SMITH, Mississippi        ALEX PADILLA, California
    LISA MURKOWSKI, Alaska               RUBEN GALLEGO, Arizona
    JOHN HOEVEN, North Dakota
                                     ------

                             Subcommittee on Energy

                             DAVID McCORMICK, Chair

    JOHN BARRASSO                        RUBEN GALLEGO
    JAMES E. RISCH                       RON WYDEN
    TOM COTTON                           MAZIE K. HIRONO
    JAMES C. JUSTICE                     ANGUS S. KING, JR.
    BILL CASSIDY                         CATHERINE CORTEZ MASTO
    CINDY HYDE-SMITH                     JOHN W. HICKENLOOPER
    JOHN HOEVEN                          ALEX PADILLA

                      Wendy Baig, Majority Staff Director
        Chris Prandoni, Majority Deputy Staff Director and Chief Counsel
               Jake McCurdy, Majority Policy Director for Energy
                     Jasmine Hunt, Minority Staff Director
                     Sam E. Fowler, Minority Chief Counsel
                  Anais Borja, Minority Energy Policy Director

                               C O N T E N T S

                                  ----------

                               OPENING STATEMENTS

                                                                       Page
    McCormick, Hon. David, Subcommittee Chair and a U.S. Senator from
      Pennsylvania...................................................     1
    Gallego, Hon. Ruben, Subcommittee Ranking Member and U.S. Senator
      from Arizona...................................................     2
    Welch, Hon. Peter, a U.S. Senator from Vermont...................     4

                                   WITNESSES

    Morenoff, David L., Deputy General Counsel, Federal Energy
      Regulatory Commission..........................................     4
    Ayoub, Kal, Director, Office of Electric Reliability, Federal
      Energy Regulatory Commission...................................     9

              ALPHABETICAL LISTING AND APPENDIX MATERIAL SUBMITTED

    Ayoub, Kal:
        Opening Statement............................................     9
        Written Testimony............................................    11
        Responses to Questions for the Record........................    26
    Digital Power Network:
        Letter for the Record........................................    30
    Gallego, Hon. Ruben:
        Opening Statement............................................     2
    King, Jr., Hon. Angus S.:
        Photograph of a carbon fiber-based conductor next to a
          conventional high-tension conductor........................    15
    McCormick, Hon. David:
        Opening Statement............................................     1
    Morenoff, David L.:
        Opening Statement............................................     4
        Written Testimony............................................     7
        Responses to Questions for the Record........................    24
    Welch, Hon. Peter:
        Opening Statement............................................     4

    ----------
    The text for each of the bills addressed in this hearing can be found
    on the Committee's website at: https://www.energy.senate.gov/hearings/
    2026/4/subcommittee-on-energy-to-receive-testimony-on-pending-
    legislation

                              PENDING LEGISLATION

                                  ----------

                           WEDNESDAY, APRIL 15, 2026

                                   U.S. Senate,
                                Subcommittee on Energy,
                     Committee on Energy and Natural Resources,
                                                        Washington, DC.
        The Subcommittee met, pursuant to notice, at 2:30 p.m. in
    Room SD-366, Dirksen Senate Office Building, Hon. David
    McCormick, Chair of the Subcommittee, presiding.

              OPENING STATEMENT OF HON. DAVID MCCORMICK,
                     U.S. SENATOR FROM PENNSYLVANIA

        Senator McCormick. The Subcommittee will come to order.
    Thank you all for being here. Thank you to my fellow Senators.
    This is our first Energy Subcommittee hearing of this Congress,
    and I would like to thank Senator Gallego for helping me put
    this together. He will be here momentarily. And for other
    members who are here today who have introduced legislation, the
    focus of this hearing is on pending legislation. We have two
    expert witnesses from FERC. Thank you, gentlemen, for being
    here, and we look forward to being able to ask you some
    questions.
        I just want to say in advance, in the event that there is
    any outburst or disruption, I am going to stop the hearing and
    ask for those folks to be removed--we have Capitol Police
    here--and allow us to continue on to the business of the day,
    but that may take a minute, if that occurs.
        Today's hearing is focused on improving our nation's grid
    to ensure the energy we are producing, but also delivering
    electricity to end users in the most efficient and affordable
    way possible. And today, we are in the midst of something
    really extraordinary--this AI revolution and the
    reindustrialization that goes hand-in-hand. These two forces
    are driving a projected 25 percent increase in demand for
    electricity by 2030, which really is antithetical to the kind
    of affordability and opportunity for Americans that we want.
    That's why I view AI and energy as two sides of the same coin.
    They go hand-in-hand in today's world. And in this global AI
    race, we really have two choices--either we win and lead, or we
    follow. And in order to help win the AI race against China, our
    primary adversary, we need energy to power this new technology,
    to power the necessary compute. Today, speed-to-power is the
    name of the game.
        In my home State of Pennsylvania, the energy we are
    producing is critical to protecting and advancing U.S. economic
    and national security. And Pennsylvania is the nation's second-
    largest producer of natural gas, we are the third largest
    electricity producer in the country, and the second largest
    producer of nuclear power. Pennsylvania is providing not only
    the power for new manufacturing and electricity generation, but
    also for well-paying, family-sustaining jobs, which are
    obviously so critical. Pennsylvania is also at the cutting edge
    of a radical transformation. We saw this last year at the
    Energy and Innovation Summit that I hosted in Pittsburgh, where
    $92 billion of investment in new data centers and energy and
    power was pledged by the CEOs around the table. At the time,
    many of them public companies making these commitments, very
    significant and very certain. But we know that we need to get
    these electrons from their generation source to their end
    users. And we know that Pennsylvanians should not see higher
    power bills because of data centers or other large-load
    projects.
        The bills we will examine today look to address speed-to-
    power challenges, including unlocking more capacity from our
    existing grid and avoiding long lead times. I am proud to have
    authored two of the bills we will consider today. There will be
    others, of course. The first is the Liquid Cooling for AI Act,
    which I introduced with Senator Chris Coons. This legislation
    is designed to help ensure American AI infrastructure is the
    most efficient, resilient, secure, and advanced in the world.
        There he is. Senator Gallego, how are you?
        I said great words and words of gratitude for you putting
    this together.
        Senator Gallego. Of course.
        [Laughter.]
        Senator McCormick. Liquid Cooling technology can better
    accommodate advanced chips and AI infrastructure, like data
    centers, while better managing energy consumption and strain on
    utilities.
        The second bill is the Reconductoring Existing Wires for
    Infrastructure Reliability and Expansion Act. That's a
    mouthful, but it's important. It's something I introduced with
    Senator Welch, who I think is here as well. There he is, yes.
    We look forward to hearing from him in a minute. This bill will
    cut permitting delays and accelerate the deployment of
    innovative grid technologies through reconductoring.
        Both of these bills are meaningful steps forward in
    reducing permitting delays and helping us to win the AI race,
    but there is still so much work to be done. With that, I look
    forward to hearing from our witnesses today. But first, I would
    like to turn to Ranking Member Gallego for his opening
    statement.

               OPENING STATEMENT OF HON. RUBEN GALLEGO,
                       U.S. SENATOR FROM ARIZONA

        Senator Gallego. Thank you, Chair McCormick, for holding
    today's hearing. We are here today to consider a handful of
    bills dealing with our energy system, a system that is seeing a
    lot of significant pressure.
        Energy demand is rising faster than we have seen in
    decades, and it is not slowing down any time soon. The U.S. is
    projected to see a 25 percent increase in electricity demand by
    2030, driven by the growth of data centers, manufacturing
    reshoring, and building transportation electrification. In some
    ways, these are good problems to have because they are signs of
    a growing economy. They are also challenges we have to get
    right. At the same time that we have seen increased demand,
    energy is becoming more and more unaffordable. Energy prices
    rose twice as fast as overall inflation last year, and one in
    three Americans reported cutting back on food or medicine to
    cover their utility bills.
        To make matters worse, gas prices have skyrocketed all over
    the country because of Trump's war in Iran. As demand continues
    to rise, so will costs. If we want to meet this demand without
    making costs even worse, we need to build more and become more
    efficient. We need permitting reform to build new lines and
    increase energy production and generation. And as generation
    increases, our transmission systems will need to be ready to
    move energy from where it is generated to where it will be used
    because at the end of the day, it doesn't matter how many
    electrons we produce--if we can't get them where they need to
    go, it makes zero difference.
        Right now, our grid system is not going to meet those
    demands. According to the DOE, 70 percent of U.S. transmission
    lines are over 25 years old, which is more than halfway through
    their operational life spans, and 55 percent of transformers
    are much older than that. Studies estimate that the national
    transmission system will need to at least double in size by
    2050 in order to maintain reliability and keep costs low. One
    study found that in 2023, insufficient capacity on the grid
    cost customers $11.5 billion. The grid we have is simply not
    the grid we need.
        This isn't just about cost, it's also a public safety
    issue. An outdated and strained grid makes us more vulnerable
    to widespread blackouts, and in hot weather states like
    Arizona--you guys may have heard, it gets hot there once in a
    while--a blackout in 115-degree weather is a matter of life and
    death for thousands of people. That's why, when I released an
    energy plan last year outlining how we can make energy more
    feasible, affordable, and reliable for Americans, I made
    transmission a key pillar because a reliable grid is impossible
    unless we get energy where it needs to go quickly and when it
    is needed.
        All this to say there is strong consensus, among the
    challenges we face, that what we are here to do today is to
    work on solutions that are feasible, productive, and effective
    in growing our grid and meeting demand significantly. There are
    some strong bills in today's markup to do that. One that I will
    be proud to support is the Chairman's Liquid Cooling for AI
    Act, which would make sure we have cooling systems capable of
    supporting the advanced chips manufacturing production, which
    is a big deal in Arizona, in a way that won't drive up costs
    for consumers. Another promising bill is the Advancing GETs
    Act, which would incentivize developers to bring new grid
    efficiency tools online and increase our transmission capacity.
        There are other bills that I have questions about how they
    will be implemented, which I will get to during questioning.
    And that tells me what our goal is here today--figuring out how
    to move forward and ensure that the best ideas are being put
    forward and pressure-tested by experts, so that when Congress
    has the opportunity to act, we are ready to do so. Thank you,
    and I yield back, Mr. Chairman.
        Senator McCormick. Thank you, Senator Gallego.
        I see Senator Welch is here, which is great, to speak on
    one of his bills which we are considering today. So, I turn to
    the great Senator from Vermont.

                OPENING STATEMENT OF HON. PETER WELCH,
                       U.S. SENATOR FROM VERMONT

        Senator Welch. Well, thank you very much, and I am going to
    violate protocol here by saying something nice about the
    Chairman. It's terrific to work with you on this. And here is
    the serious thing, it's not just the term bipartisan, but the
    reality is, and this is what Senator McCormick and I realized--
    you are getting significantly higher rates in Pennsylvania. We
    are getting higher rates in Vermont. And a lot of the
    challenges that we face affect the people we represent. It's
    not a red state/blue state deal. It's like, high electricity
    bills are tough on whoever it is we represent. And Senator
    Gallego, you were talking about how we really have to modernize
    our transmission system.
        But the bill that Senator McCormick and I are promoting
    says let's take the system we have and enhance it through
    technology. There are a lot more electrons that can flow
    through what we have. That is such a less expensive way to
    increase the access to the electrons that we need. So, you
    know, we use the term common sense, but what it is really
    grounded in, and Senator McCormick, I so appreciate you being
    willing to work with me, and we share the view that working
    together we can make more progress. But it's because the
    identical challenges that those ratepayers in Pennsylvania face
    are the identical challenges of ratepayers in Vermont. And this
    is a real Maine kind of thing--take what you have and get more
    out of it--use it, and use it more efficiently.
        So, I so appreciate this Committee, partnering with you,
    Senator McCormick, and thank you so much for the opportunity to
    be here and promote this legislation.
        Senator McCormick. Thank you, Senator Welch. I share that
    sentiment. Thank you so much for being a great partner on this.
        I would also like to thank the two witnesses that we have
    here today. First, we have David Morenoff, the Deputy General
    Counsel of the Federal Energy Regulatory Commission (FERC). And
    the second is Mr. Kal Ayoub, the Director of the Office of
    Electric Reliability, also at FERC.
        So, what I would like to do is, ask the witnesses to come
    forward, and we will ask you to each have five minutes and then
    we will turn to questions. And for my fellow Senators who are
    here, Senator King and Senator Padilla, I am happy to cede my
    questions, my time, to each of you after Senator Gallego, and
    you can ask your questions, and I will wrap up in the end.
    Okay?
        All right, Mr. Morenoff, the floor is yours for five
    minutes to give your opening statement.

    STATEMENT OF DAVID L. MORENOFF, DEPUTY GENERAL COUNSEL, FEDERAL
                      ENERGY REGULATORY COMMISSION

        Mr. Morenoff. Chairman McCormick, Ranking Member Gallego,
    and Members of the Subcommittee, my name is David Morenoff. I
    appreciate the opportunity to appear before you today as a
    member of the staff of the Federal Energy Regulatory
    Commission. I currently serve as the Commission's Deputy
    General Counsel. The views I express today are my own and are
    not necessarily those of the Commission or of any individual
    Commissioner. The Commission's jurisdiction covers a range of
    vital energy-related responsibilities. For example, it is the
    Commission's responsibility to ensure that rates for the
    wholesale sale and transmission of electricity, as well as the
    transportation of natural gas by pipeline in interstate
    commerce, are just and reasonable. The Commission is also
    responsible for overseeing the reliability of the nation's bulk
    power system. In addition, the Commission is responsible for
    siting needed energy infrastructure, including interstate
    natural gas pipelines, liquefied natural gas, and hydroelectric
    facilities. By fulfilling these responsibilities, the
    Commission helps to ensure that our country has a reliable and
    affordable supply of energy.
        With these responsibilities in mind, Commission Chairman
    Laura Swett has recognized that our country is at a historic
    crossroads and has highlighted three priorities for the
    Commission: (1) keeping the lights on and the pipelines flowing
    at just and reasonable rates, (2) doing everything within the
    Commission's power to facilitate the connection of large loads
    and data centers, while also ensuring that the resulting costs
    are fairly allocated, and (3) maximizing the Commission's
    ability to encourage and facilitate infrastructure development,
    which is critical to reliability, safety, and our economy.
        These responsibilities and priorities both drive the
    Commission's actions and align with the themes of the proposed
    bills that are the subject of today's hearing. Spurred in part
    by the demands of emerging large loads, such as data centers,
    our country is experiencing rapid growth of electric load
    unlike anything seen in at least several decades. To not only
    meet that growth, but also to do so in an affordable manner, it
    is important to interconnect new generation resources
    expeditiously. The Commission has approved proposals from the
    grid operators for several large regions of the country to
    expedite interconnection for generation resources that are more
    likely to be constructed and that will meet those regions'
    respective needs. The Commission also has acted on filings made
    by all jurisdictional transmission providers in compliance with
    the Commission's Order No. 2023, a unanimous Commission final
    rule on the interconnection of new generation resources.
        Addressing a related issue, the Commission, in December,
    directed the nation's largest grid operator to establish
    transparent rules to serve data centers and other large loads
    that are co-located with generation. Those rules will safeguard
    reliability and protect consumers, impacting over 67 million
    Americans. The Commission has also approved innovative
    proposals from other grid operators to expedite interconnection
    of large-load additions and associated generation in a manner
    that accommodates the unique operational demands of large loads
    while also facilitating reliable interconnection and protecting
    other transmission customers. The bills that are the subject of
    today's hearing sound similar themes of reliability and
    affordability. Some of the bills identify potential reliability
    challenges, such as what too often have been frustratingly slow
    processes for the interconnection of new generation resources.
    Others of the bills underscore the importance of making full
    use of existing electric infrastructure in support of
    affordability, including through appropriate application of
    grid-enhancing technologies.
        If Congress determines that these important issues warrant
    providing further direction to the Commission and authorizing
    further tools for the Commission's use, the Commission stands
    ready to take on those additional responsibilities. Thank you
    for the invitation to testify before the Subcommittee today. I
    would be happy to answer any questions you may have.
        [The prepared statement of Mr. Morenoff follows:]
        [GRAPHICS NOT AVAILABLE IN TIFF FORMAT]

        Senator McCormick. Thank you.
        Mr. Ayoub.

         STATEMENT OF KAL AYOUB, DIRECTOR, OFFICE OF ELECTRIC
           RELIABILITY, FEDERAL ENERGY REGULATORY COMMISSION

        Mr. Ayoub. Chairman McCormick, Ranking Member Gallego, and
    members of the Subcommittee, thank you for the opportunity to
    testify today. My name is Kal Ayoub, and I am the Director of
    the Office of Electric Reliability at the Federal Energy
    Regulatory Commission. The Office is responsible for leading
    the Commission's responsibilities in protecting, improving, and
    overseeing the reliability and security of the nation's bulk
    power system through effective regulatory oversight established
    in the Energy Policy Act of 2005. I am here today as a
    Commission staff witness. My remarks do not necessarily
    represent those of the Commission or any individual
    Commissioner. My testimony summarizes the Commission's
    oversight of the reliability of the bulk power system and
    recent Commission activity implementing that authority.
        The Energy Policy Act of 2005 added Section 215 to the
    Federal Power Act, giving the Commission authority over
    mandatory, enforceable reliability standards for the nation's
    bulk power system, which includes the interconnected U.S. grid,
    but excludes Alaska, Hawaii, and local distribution systems.
    Under this provision, the Commission certified NERC as the
    electric reliability organization responsible for the
    development of reliability standards for Commission review,
    approval, and subsequent enforcement by NERC and its regional
    entities, subject to Commission oversight. The Commission may
    approve or remand a reliability standard based on statutory
    criteria, but cannot write or modify the standard itself.
    Instead, it may direct NERC to develop new or revised standards
    to address identified reliability gaps.
        Reliability today is shaped by factors that test
    resilience. Those include rapid load growth from large loads,
    such as data centers, a more diverse resource mix that requires
    accurate modeling and consistent performance expectations, and
    the increasing frequency of extreme weather events. On top of
    this is the ever-present and constantly evolving threat
    landscape related to cybersecurity and physical security.
    Protecting the grid from malicious actors, whether through
    cyber intrusions, physical attacks on critical facilities, or
    exploitations in the supply chain, remains fundamental to
    maintaining reliability. The Commission has taken extensive
    actions over the years to ensure reliability. Since adopting
    the critical infrastructure standards in 2008, it has expanded
    protections against cyber and physical threats, including
    supply chain risks, network monitoring, and incident response.
    To address extreme weather, the Commission approved new
    standards, directed improvements to cold weather preparedness,
    and required vulnerability assessments. It also directed NERC
    to develop new standards for inverter-based resources, which
    the Commission has since approved.
        Currently, the Commission is closely following the
    emergence of large loads. This includes ongoing NERC activity
    to identify and register large loads for compliance with
    reliability standards and develop new reliability standards
    that address their associated reliability risks. Once
    completed, NERC will submit their reliability standards for
    Commission review and approval. The Commission's core mission,
    as Chairman Swett emphasizes, is to ensure reliable, secure,
    and affordable energy. Her focus on regulatory certainty is
    essential for timely infrastructure investment and for enabling
    large loads to connect to the grid predictably, while
    maintaining reliability is reflected in the work that is
    highlighted today. The legislation under consideration reflects
    these challenges, highlighting the need for clear planning
    processes, accurate risk assessments, timely infrastructure
    development, and strong coordination across stakeholders. The
    Commission remains committed to working with Congress, NERC,
    and industry to uphold a reliable, resilient, and secure bulk
    power system.
        Thank you, and I look forward to your questions.
        [The prepared statement of Mr. Ayoub follows:]
        [GRAPHICS NOT AVAILABLE IN TIFF FORMAT]

        Senator McCormick. Thank you, Mr. Ayoub.
        Senator Gallego, do you want to go ahead with your
    questions?
        Senator Gallego. I will defer to Senator King, in case he
    wants to ask questions and head out since I will be here the
    whole time.
        Senator King.
        Senator King. Thank you very much. Perhaps AI could do a
    better job of scheduling the Senate.
        [Laughter.]
        Senator King. I have three hearings at the very same time
    this afternoon, so I appreciate that, both of you.
        I just wanted to mention two bills that I think are
    particularly important. One is the Advancing GETs Act, which
    would basically not mandate grid-enhancing technologies, but
    provide an incentive to developers to counteract the current
    incentive, which is to build things in the old way. And Mr.
    Ayoub, my study indicates that GETs can really have a
    significant--up to 30 percent--increase in the throughput of
    the grid at a much lower cost than an entire rebuild. Is that
    your judgment?
        Mr. Ayoub. Thank you for the question, Senator.
        So, from a reliability perspective, grid-enhancing
    technologies provide tremendous value to the grid, such as
    reconductoring, optimization, and dynamic line ratings. So,
    from a reliability perspective, I think, any more electrons
    that we can get on the grid is a positive, specifically when
    there are short-term solutions in terms of building new
    transmission lines.
        Senator King. Well, one of the advantages is time.
        Mr. Ayoub. Correct.
        Senator King. This is something that would be done almost
    immediately with no permitting and no delays. Secondly, it's
    much cheaper. And one of the problems that we face is that this
    gigantic expansion of the grid is going to be expensive. And we
    are now seeing transmission and distribution costs that exceed
    the cost of generating electricity. So, that's why I think this
    is an important initiative. And again, what it does is
    basically provide an incentive to the developer of the
    transmission.
        The second bill is one that I am proud to co-sponsor with
    the Chairman, and that is the REWIRE Act, which is about
    conductors. This is a conventional conductor, and this is a
    carbon-based conductor.
        [Photograph of the two conductors follows:]
        [GRAPHIC NOT AVAILABLE IN TIFF FORMAT]

        Senator King. As you can see, it's smaller and lighter. It
    will carry twice the electricity. And so, this is another way
    of significantly increasing the grid capacity without new
    poles, without new rights-of-way, without the huge expense. And
    the REWIRE Act, under the Chairman's leadership, would
    basically say, you don't have to go through a long permitting
    process because there's no environmental impact of this, except
    for the good, but it's also a way of considerably cutting the
    cost of the expansion that we all agree is necessary. So, you
    mentioned reconductoring. Expand on that--and you are welcome
    to say that I am right.
        [Laughter.]
        Mr. Ayoub. Senator King, thank you for the question. I
    would agree that grid-enhancing technologies, which include
    reconductoring, provide tremendous value because, as you
    mention, they are improvements to existing lines on existing
    rights-of-way. Imagine having a two-lane road, and you are
    getting congestion over the years, and you ask yourself, rather
    than build a new highway, which is important, can we expand
    that two-lane road to a four-lane road temporarily until we
    address the other issue? So, absolutely, it's all of the above.
    From a reliability standpoint, I will always say getting
    electrons through the transmission lines is a positive for all
    of us.
        Senator King. But I do think that we have to be thinking
    about cost because electric rates are already going up and are
    too high in many regions of the country--in New England. And
    the expansion of the grid, if we don't watch it, is going to
    substantially increase. I remember the day when T&D was 30
    percent of the bill. Now it's over 50 percent, approaching 60
    percent, and it's going to be even more than that unless we
    adopt the technologies that will enable us to do this expansion
    without burdening the ratepayers. And that's your mission at
    FERC, is it not?
        Mr. Morenoff. Senator, thank you. Yes, I agree entirely.
    The Commission's mission is to ensure just and reasonable rates
    for consumers, and that goes directly to the issues that you
    have raised.
        Senator King. Thank you.
        Thank you, Mr. Chairman. I appreciate it. I appreciate your
    allowing me to go forward.
        Senator McCormick. Senator Padilla.
        Senator Padilla. Thank you, Mr. Chairman. Likewise, I
    appreciate the accommodation, the flexibility, I appreciate you
    and the Ranking Member calling for today's hearing and want to
    register my support for two of the bills included in this
    hearing today--Senator King's Advancing GETs Act, and of
    course, Mr. Chairman, your REWIRE Act. Now, these bills, I
    think, take crucial steps toward modernizing our grid--which is
    needed, and in many places overdue--with the advanced
    transmission conductors and grid-enhancing technologies that
    Senator King and I talk so frequently about. As you can tell,
    he is a big fan. They also represent key pieces of what needs
    to be done to build out a reliable transmission system in this
    country, particularly as the population grows, our economy
    grows, and the need for electrons continues to grow.
        But separately, I wanted to highlight the discussion draft
    on transmission that I, along with four of my colleagues on
    this Committee, have been circulating to address the
    transmission system more holistically. The package includes
    provisions from both of the bills on the agenda today, and I
    want to thank the Chair, again, for his focus on this topic.
        Now, getting to my first question, Mr. Ayoub, I know you
    have been responding to Senator King's questions about the
    benefits of these new technologies. I wanted to hear from Mr.
    Morenoff on any identified barriers from a legal and/or
    administrative perspective to the deployment of reconductoring
    or grid-enhancing technologies at scale, right? If we are
    convinced this is the direction to go, how do we go as quickly
    as possible? What needs to change to let us do so?
        Mr. Morenoff. Senator, thank you for that question. I think
    it's currently less an issue of legal barriers and more about,
    as Senator King was saying, establishing proper incentives
    because there may be reasons why individual utilities in a
    particular situation may choose to make a different investment
    rather than utilizing a grid-enhancing technology. And I think
    that some of the bills on today's agenda seek to address that
    challenge, to say, are there more incentives that we can
    provide to try to make those technologies more appealing, and
    therefore be able to provide those benefits to ratepayers?
        Senator Padilla. Okay.
        And what specifically may come from Congress/the federal
    level versus what states may provide, or in rate cases that
    utilities have to go through to be able to, again, take these
    leaps forward?
        Mr. Morenoff. Thank you, Senator. That's true that many
    utilities would have matters both before FERC as well as before
    the commission at the state level. I suspect that there is a
    common interest across those levels-- certainly the case at
    FERC, and I know here at the Committee--on doing everything we
    can to ensure that rates are just and reasonable. And if this
    is one of the steps that we can take to promote that result,
    hopefully the incentives that we are discussing can drive more
    effort in that direction, as well as in the type of new
    investment we need.
        Senator Padilla. Okay.
        Moving on to a related topic, FERC spent the last five
    years working to accelerate generator interconnection queues
    through its work on Order No. 2023. I know you are both very
    familiar with that. I see the heads nodding. In the last year,
    FERC also approved regional-specific accelerated programs to
    get new generation connected to the grid quickly. All of these
    programs included battery storage. I know this is a
    Subcommittee. I will repeat it at the next opportunity for the
    full Committee. I think the Chairman would appreciate hearing
    this. All of these programs included battery storage. All were
    fuel-neutral and all prioritized projects that are commercially
    available and ready to break ground.
        Mr. Morenoff, is further action to reorder interconnection
    queues really going to help move the ball forward when so much
    has already been accomplished?
        Mr. Morenoff. Senator, thank you. As you noted, the
    Commission has taken many steps in recent years to accelerate
    interconnection, both with respect to establishing generic
    rules for all jurisdictional transmission providers in Order
    No. 2023, as well as in responding to the individual filings we
    have received from individual regions highlighting their needs.
    Whether there are additional steps to prioritize additional
    types of resources, we would, of course, defer to Congress and
    be available to implement whatever Congress may determine is
    appropriate.
        Senator Padilla. Yes, obviously, the concern would be when
    we get to be too prescriptive on the types of projects and we
    are no longer neutral on that front, that could undermine the
    implementation of work that has been underway already and
    moving us in the right direction. So, thank you for your
    participation today.
        Senator McCormick. Senator Gallego.
        Senator Gallego. Thank you, Chairman.
        It took the Commission more than two years to issue its
    landmark interconnection order, Order No. 2023. Conversely, the
    GRID Power Act would require final regulations issued on the
    bill within 180 days of enactment. Could you explain how the
    Commission could benefit from having more than six months to
    implement this type of rule?
        Mr. Morenoff. Thank you, Senator, for that question.
        As you noted, large-scale rulemakings, like the
    Commission's Order No. 2023, involve a series of steps, usually
    including at least the issuance of a notice of proposed
    rulemaking. We often then receive extensive comments back,
    which we take seriously in developing anything that would be a
    final rule. It has been the case, typically, that we have
    needed longer than that six-month period in order to reach a
    final rule. We also recognize the importance of the types of
    issues that are being addressed, and that when Congress sets a
    timeline, FERC takes those timelines very seriously and has a
    very good track record of meeting the deadlines that Congress
    establishes.
        Senator Gallego. And then, Mr. Ayoub, does FERC currently
    have the expertise and data to review proposed agency actions
    for reliability concerns? And how helpful is it to have NERC's
    expertise as part of the reliability assessment process?
        Mr. Ayoub. Thank you, Senator.
        As the Director of the Office of Electric Reliability, of
    course, we do have expertise, and our priorities right now are
    focused on managing reliability as a resource amidst changes,
    responding to extreme weather, and protecting the grid from
    physical and cyber-attacks. In terms of cross-agency expertise,
    I think I would, if it's okay with you, Senator, I may defer to
    Mr. Morenoff, the Deputy General Counsel.
        Mr. Morenoff. Thank you.
        Both with respect to our interaction with other agencies
    and our interaction with NERC, for some of the depth of
    studies, it is particularly beneficial to have that type of
    draw on the expertise, and in particular, the computing power
    that may be available. Some of the studies that were described
    in the bill that you are referencing, we believe that NERC
    would have the capability of doing, and perhaps the national
    labs would have the capability of doing. FERC would very much
    benefit from that information, but would not currently have the
    capability of doing those studies ourselves.
        Senator Gallego. Okay.
        Mr. Morenoff, FERC's Chairman is named by the President,
    potentially inputting a more political process into these grid
    reliability determinations, as FERC approval appears necessary
    for certain agency actions to become final. Members of both
    parties have spoken about the importance of consistency in
    permitting across agencies for the stability of both the grid
    and private business. Would adding the risk of more political
    process hurt certainty and stability for the grid?
        Mr. Morenoff. Thank you, Senator.
        I would agree that the more certainty that we can provide
    with respect to permitting--and in fact, Chairman Swett has
    spoken more generally about the benefits of providing greater
    regulatory certainty at a time when investment is so greatly
    needed.
        Senator Gallego. Mr. Ayoub, turning back to the GRID Power
    Act, can you explain whether prioritizing certain forms of
    generation over others could impact grid reliability or energy
    affordability in the long run?
        Mr. Ayoub. Thank you, Senator.
        Again, as the Director of the Office of Electric
    Reliability, focusing strictly on cyber and physical security,
    inverter-based resources, extreme weather, I just want to
    clarify, Senator, is your question specific to generator
    interconnection reform?
        Senator Gallego. No, prioritizing certain forms of
    generation to incent in terms of generation when it comes to
    renewables versus carbon-based versus nuclear, you know, in
    terms of, I believe personally that the government should be
    agnostic about it, right? Try to figure out how to get as many
    electrons on the grid as fast as possible and move them from
    everywhere. And I want to hear your assertion whether you agree
    that there should be an agnostic approach to power generation.
        Mr. Ayoub. Thank you for the clarification, Senator.
    Absolutely, the Commission is technology-neutral, has always
    been, and the Commission doesn't pick winners or losers or
    which specific technologies should be considered under any act.
        Senator Gallego. Okay, and the reason I bring that up is
    because we have seen this administration decide that carbon-
    based energy is quote/unquote ``better'' than renewables, and I
    think at some point, you know, when it comes to being able to
    generate and then move it, sometimes it might actually be
    better and cheaper for us to be using renewables, and sometimes
    it is good to use carbon. And I would be fine for that, too,
    but I want to make sure that it's being decided on an agnostic
    basis. That is going to be the most important thing, I think,
    to bring down the cost for the consumer.
        And I yield back.
        Senator McCormick. Thank you.
        Mr. Morenoff, let me begin by asking about the REWIRE Act
    that we talked about a few minutes ago. As we know,
    reconductoring allows us to increase capacity using the
    existing transmission lines or rights-of-way. Based on FERC's
    experience, how much additional capacity can reconductoring
    make available on the existing system, and to what extent are
    existing utilities already using this approach?
        Mr. Morenoff. Thank you, Senator. I can talk about that
    broadly and then my colleague, Mr. Ayoub, may have some
    additional, more technical thoughts.
        Senator McCormick. Great.
        Mr. Morenoff. But I think the observation is correct that
    there is great potential from the application of reconductoring
    and other advanced technologies in order to get more out of our
    existing system. Although I don't have a particular percentage
    in mind, I do think that we have seen, as some utilities have
    started to take steps----
        Senator McCormick. But rare, or common at this point?
        Mr. Morenoff. I don't have a number to offer, I'm sorry.
        Senator McCormick. Okay.
        Mr. Ayoub.
        Mr. Ayoub. Thank you, Senator.
        I don't have a percentage of how many utilities are
    adopting them, but I know they are becoming more popular
    amongst--for the obvious reason, Senator, where we are pushing
    more electrons through the transmission lines without building
    new lines.
        Senator McCormick. Great.
        And this question goes to both of you, I think. We are
    seeing renewed growth, as I mentioned in my opening statement,
    across a number of sectors in terms of electricity demand. How
    is FERC assessing the implications of that growth for grid
    reliability, and what trends are you seeing in the
    interconnection queue today?
        Mr. Ayoub. I can speak from the reliability side and I will
    turn it over to my colleague.
        Senator McCormick. Great.
        Mr. Ayoub. So, thank you, Senator, for the question.
        We work, as you are aware, with NERC--the North American
    Electric Reliability Corporation--which issues a long-term
    reliability assessment every year that looks ten years ahead
    and sort of looks at the entire continent, and through that
    assessment, really looks at where there are generation
    deficiencies, transmission issues, and they come up with a map
    every year as a snapshot. So, we work very closely with NERC as
    we are looking at the long-term reliability assessment, and
    through that, before my colleague picks up, the Commission has
    approved some processes, for which Mr. Morenoff would go into
    detail, but from our standpoint, working with NERC, we do
    identify through studies, et cetera, where those reliability
    gaps are.
        Mr. Morenoff. Thank you, Senator.
        And with respect to interconnection, in particular, I think
    that the slow pace of interconnections, which sometimes takes
    seven or eight years for a proposed project to move through the
    interconnection queue, always was a problem for drawing the
    investment that was needed. As the pace of load growth has
    increased so dramatically, that has become not just a
    frustration, but a really dramatic problem in terms of having
    the adequate generation resources available. I think the
    Commission's actions over the past several years reflect
    several steps to address that, both in terms of establishing
    more effective baseline rules through Order No. 2023, and then
    also, recognizing that individual regions face different
    challenges. And looking at the proposals they have brought to
    FERC to say, what are the resources they need, what are those
    resources' characteristics, and trying to look for ways in the
    short term to further expedite the processing of those
    generating resources.
        One other observation in that respect is that, above and
    beyond what the Commission has already improved, there are some
    transmission providers that are also looking for ways to adopt
    other advanced technologies into their interconnection queue
    processing. And there seems to be great potential to further
    expedite that processing through the use of those technologies.
        Senator McCormick. Very good. Thank you.
        Mr. Ayoub, I want to ask you about the legislation I
    introduced with Senator Coons, the Liquid Cooling for AI Act.
    As we know, data centers are crucial to winning the AI race
    with China. Data centers' annual energy use could grow from 4.4
    percent of the country's total annual electricity consumption
    to 12 percent by 2028, just around the corner. What changes has
    FERC observed in the scale and pace of large-load
    interconnection requests, and is the current system keeping
    pace with that demand, or do you see strains emerging?
        Mr. Ayoub. Thank you for your question, Senator.
        So, I will start with you first, with the legislation. I
    understand it's directed at the DOE, but I did want to comment
    that while the Commission is technology-neutral, any technology
    that can lower the consumption and use from data centers would
    be a good thing for the grid. In terms of large-load
    connections and application to the Commission, as my colleague
    Mr. Morenoff has said, you know, there have been some orders
    that the Commission has issued, specifically the show cause
    orders, but I can turn it over to Mr. Morenoff for details on
    the orders themselves. I want to make sure I am careful with
    what is ex parte and what is not yet.
        Mr. Morenoff. Thank you, Senator.
        The Commission has already taken some steps, recognizing
    that the issues about exactly what will be FERC-jurisdictional
    and what will be state-jurisdictional are not entirely clear.
    But the Commission has taken actions within our jurisdiction to
    ensure that there is greater clarity about the rules as to at
    least the context of large loads and the context of co-location
    with generation. And I think that clarity will help to provide
    greater investment incentives as well.
        Senator McCormick. Very good.
        Gentlemen, is there anything either of you would like to
    offer in addition to the questions you were asked or your
    initial statements?
        Mr. Morenoff. Senator, just, again, to thank you for the
    opportunity and for the leadership that this Committee is
    demonstrating on these really important issues. FERC very much
    values the opportunity to be part of that continuing discussion
    with you and with the Committee.
        Senator McCormick. Okay.
        Senator Gallego, do you have any more questions or
    anything?
        Mr. Ayoub. And I will say thank you so much, Senator. It is
    a privilege to be here. My family is here with me to come
    watch. And in terms of offering our office, I am sure I speak
    for David as well, always available for technical assistance on
    future bills as well.
        Senator Gallego. Thank you for your time.
        Senator McCormick. Yes, very good.
        I just want to thank you both, thank you to your families
    for being here to support you. I want to recognize each member
    in attendance and have them noted by the clerk. And I really
    want to thank you for coming. We are trying to get a lot done
    in this area, and your expertise is very helpful.
        Official questions for the record--I don't think we had any
    questions for the record--but those questions are due by 6:00
    p.m. today. Statements for the official record are due on
    Wednesday, April 22, 2026.
        And with that, the hearing is adjourned. Thank you.
        [Whereupon, at 3:22 p.m., the hearing was adjourned.]

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