Research Article
The Political Complexity of Regional Electricity
Policy Formation
Kyungjin Yoo
1
and Seth Blumsack
1,2
1
John and Willie Leone Family Department of Energy and Mineral Engineering, Pennsylvania State University, USA
2
Santa Fe Institute, Santa Fe, New Mexico, USA
Correspondence should be addressed to Seth Blumsack; sab51@psu.edu
Received 18 May 2018; Revised 9 October 2018; Accepted 8 November 2018; Published 5 December 2018
Guest Editor: Miguel Fuentes
Copyright © 2018 Kyungjin Yoo and Seth Blumsack. Tis is an open access article distributed under the Creative Commons
Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is
properly cited.
Te integration of renewable power supplies into existing electrical grids, or other major technology transitions in electric power, is
a complex sociotechnical process. While the technical challenges are well-understood, the process of adapting electricity policy and
market rules to these new technologies is understudied. Planning and market rules are a critical determinant of the technical success
of renewable energy integration eforts and the fnancial viability of renewable energy investments. Organizational adaptation can
be particularly complex in electric power, where transmission grids cross multiple political boundaries and decisions are made not
by central authorities or governments, but in cooperative regional frameworks that must accommodate many divergent interests.
We add to a recently emerging literature on the governance of regional organizations that plan and operate electric power grids by
developing and illustrating a novel approach to the study of political power in multistakeholder electricity organizations. We use
semistructured interviews with participants in a specifc regional electric grid authority, the PJM Regional Transmission Operator
in the Mid-Atlantic United States, to elicit perceptions of where tensions arise in stakeholder-driven processes for changing PJM’s
rules and perceptions of those groups of stakeholders that possess political power. We treat these perceptions as hypotheses that
can be evaluated empirically using fve years of data from PJM on how stakeholders voted on a wide variety of regional electricity
policy issues. Representing voting behavior as a network, we use a community detection method to identify strong coalitions of
stakeholders in PJM that provide support for some stakeholder perceptions of political power and refute other perceptions. Te
degree distribution of the voting network exhibits a fat tail relative to those in other canonical graph models. We show, using
relatively simple network metrics including degree, betweenness, and the mixing parameter, that the reason for this fat tail in the
degree distribution is the existence of “swing” voters in RTO stakeholder networks. Tese voters are identifable in the tail of the
degree distribution of the voting network and are infuential in pushing highly contentious rule change proposals towards passage or
failure. Te method we develop is generalizable to other contexts and provides a new framework for the study of regional electricity
policy formation.
1. Introduction
As large-scale electric power systems undergo various types
of technological transition, including the integration of large
amounts of renewable power generation and an increase in
adoption of distributed power generation and electrifcation
of transportation, the rules that govern markets, planning,
and operations of the power grid need to adapt along with
technology [1–6]. Tese rules are important for determining
the value of technology options that explicitly or implicitly
compete to provide electric generation and transmission
services [7]. Te challenges in integrating weather-dependent
wind and solar power into regional electric grids have
provided some recent examples of how grid operators have
needed to adapt their rules, especially when those grid
operators span multiple political jurisdictions (e.g., regional
grid operators covering all or parts of several states in the
United States or coalitions of national grid operators in
Europe). In the United States, grid operators have adapted
to rapid growth in wind energy by changing market and
Hindawi
Complexity
Volume 2018, Article ID 3493492, 18 pages
https://doi.org/10.1155/2018/3493492