Energy expansion: An economic opportunity. Here is why

It’s a rare circumstance that a federal government action could effectively drive more local investments in high-value energy infrastructure. But a new rulemaking expected this month from the Federal Energy Regulatory Commission could deliver real benefits for Mississippi businesses and electricity ratepayers.

If carefully crafted, FERC’s new rule could ensure that state utility regulators and the utilities serving our state and neighboring states work together to proactively identify, plan and build the infrastructure necessary to deliver the low-cost energy needed to attract new business. This expected rule — which could help define how high-voltage, long-distance transmission lines are planned for generations — is particularly important, as America’s energy production and consumption is roaring to life.

Several projects announced this year highlight that trend. A $115 million solar project in George County is expected to employ hundreds of construction workers.

A $1.9 billion advanced battery cell production facility — marking the state’s largest project payroll commitment — is coming to Marshall County. Steel Dynamics will produce biocarbon in Lowndes County to reduce emissions from its steelmaking operations, creating dozens of high-paying jobs. Marking the single-largest capital investment in Mississippi’s history, Amazon recently announced it will build two data centers in Madison County.

Amazon, which has set aggressive clean energy targets, is expanding its renewable footprint in the region and will purchase power from the state’s first utility-scale wind farm and area solar farms.

All told, these projects are expected to create several thousand jobs, investing multiple billions into local communities. American energy production continues to change rapidly, and it’s driving big business for Mississippians.

But big business requires big infrastructure. New economic developments will need significant amounts of electricity and power lines to transport it. Mississippi currently has about 16 gigawatts of proposed generation projects in the interconnection queue, but they will likely require greater transmission capacity to connect to the system.

FERC’s rulemaking could help spur the development of needed transmission lines across the region. These transmission lines would ensure stronger connections to neighboring states and improve grid resilience, allowing Mississippi to import or export available electricity to meet high demand levels or during extreme weather emergencies.

Extended power outages can be dangerous for vulnerable residents left without air conditioning in the summer or heat in the winter. Stronger ties to neighboring states would carry available electricity from unaffected areas to help meet demand.

Notably, studies have shown that the mid-South region is not building the transmission capacity needed to meet projected demand growth. Further, retirements of legacy power plants across the region in the coming years could result in capacity shortfalls without additional generation coming online. Regional transmission lines would provide needed access to more generation, helping ensure resource adequacy.

Mississippi and local economic development officials have an incredible opportunity to bring new industries to the state and deliver new investments to our rural communities. Smart, proactive investments in the regional power grid will help ensure the system is ready to facilitate the addition of new businesses and affordable energy sources, keeping bills stable for Mississippi families.

Let’s hope that FERC delivers on a rule that will allow the flexibility and collaborative planning needed to build a more efficient, resilient grid to power Mississippi for decades of growth to come.

— Brent Bailey represented the Central District on the Mississippi Public Service Commission from 2020 to 2024 and is now Vice President of Efficient Power & Light LLC.

This article originally appeared on Mississippi Clarion Ledger: Energy expansion: An economic opportunity for MS Brent Bailey