The U.S. electric utility sector is entering a period of pronounced ideological divergence. At the federal level, new appointments suggest a pivot back toward top-down deregulation and centralized market control. In contrast, states like Oregon are charting a course centered on local autonomy, grid resilience, and distributed energy innovation.
The recent nomination of David LaCerte to the Federal Energy Regulatory Commission (FERC) highlights this federal shift. LaCerte, known for his ties to conservative policy circles, contributed to Project 2025, a Heritage Foundation framework aimed at overhauling federal oversight institutions. His appointment could signal an effort to reshape FERC’s posture—potentially weakening regulatory mechanisms that currently govern interstate power markets and large-scale infrastructure approvals.
FERC oversees wholesale electricity transactions and transmission lines that span multiple jurisdictions. Its decisions can override state preferences, particularly when large transmission or gas pipeline projects are involved.
With LaCerte’s background in energy litigation and deregulation, industry observers anticipate a recalibration of FERC’s approach—one that may prioritize market liberalization and fossil infrastructure expansion.
Yet while federal policy drifts in one direction, several states are heading in another.
Local Power, Local Control: Oregon’s Microgrid Milestone
Oregon has taken a pioneering step by passing the country’s first comprehensive legislative framework supporting microgrid deployment. These systems—small, self-sustaining networks capable of operating independently from the broader grid—can integrate various generation sources such as rooftop solar, battery banks, wind turbines, and backup generators.
More than a technical evolution, microgrids represent a shift in governance. They allow municipalities, tribal governments, campuses, military installations, hospitals, and even residential neighborhoods to regain agency over energy planning. Rather than relying on unidirectional energy flows from distant generation, microgrids enable dynamic, two-way energy management at the community level.
This decentralized architecture enhances system redundancy. During extreme weather, wildfires, or cyber events, microgrids can isolate and maintain critical services even if the broader transmission network falters. For rural cooperatives, tribal energy authorities, and municipal utilities, microgrids offer a path to locally tailored, risk-responsive energy solutions.
In Oregon, the bipartisan passage of House Bills 2065 and 2066 positions the state as a national leader in enabling this transition. The legislation streamlines the permitting, financing, and interconnection process for microgrid projects—removing long-standing barriers that have hampered adoption elsewhere.
The Political Economy of Grid Reform
While the emergence of microgrids is tied to advances in energy storage, software, and distributed generation, it’s also a response to market structure and regulation. Investor-owned utilities (IOUs) have long resisted localized energy platforms due to their disruptive effect on centralized cost recovery models. Regulatory constructs that favor large-scale capital projects often leave distributed systems struggling to gain traction.
But that resistance is becoming harder to sustain. Wildfire-prone regions, aging infrastructure, and heightened climate volatility have pushed the limits of traditional grid models. Even regulators are now confronting the vulnerabilities embedded in sprawling, high-voltage networks.
Where IOUs may see stranded assets, local governments see opportunities for self-reliance. Where utilities propose billion-dollar transmission upgrades, microgrids offer modular, lower-cost alternatives that can be deployed incrementally and maintained locally.
Historically, FERC has supported centralized generation and high-voltage infrastructure, largely through its regulatory relationship with Regional Transmission Organizations (RTOs) and Independent System Operators (ISOs). While these entities were designed to ensure open, efficient access to power markets, they can inadvertently create hurdles for distributed energy systems.
Retail electricity remains under state jurisdiction. However, FERC’s decisions regarding interconnection rules, market access, and transmission cost allocation have profound implications for the viability of decentralized approaches. Whether microgrids can scale to meet broader system needs will hinge, in part, on whether federal rules evolve to reflect the realities of a decentralized, climate-stressed grid or continue to reinforce legacy institutions.
From Wildfire Shutdowns to Local Energy Security
Nowhere is this dynamic more visible than in wildfire-prone areas. Public Safety Power Shutoffs (PSPS) have become a common risk management tool for utilities of all sizes—investor-owned and public-owned alike. Microgrids offer a way to limit the geographic and temporal footprint of PSPS events by creating power islands that can remain energized while the broader system is de-energized for safety.
Utilities leveraging wildfire intelligence tools, such as those offered by Athena Intelligence, can make PSPS implementation more precise—reducing unnecessary outages while improving fire safety. These tools also support broader resilience planning, asset risk profiling, and capital investment prioritization.
State Innovation Meets Federal Recalibration
Against this backdrop, the nomination of David LaCerte—and the possible appointment of Laura Swett as FERC Chair—creates a notable contrast. If the federal agenda shifts toward deregulation and fossil fuel expansion, states like Oregon may increasingly act as counterweights, building parallel structures that reflect community needs and climate realities.
This trend underscores a core truth in today’s utility sector: while federal policy remains influential, the most forward-looking energy reforms are taking root at the state and local levels.
The idea of states as energy laboratories isn’t new—but the urgency is. With infrastructure aging and extreme events becoming the norm, utilities and communities can no longer afford to wait for Washington. Oregon has offered a legislative model. Others are likely to follow.
The Path Forward
As the utility landscape continues to evolve, the future will be shaped as much by local leadership as by federal appointments. Whether you're a general manager at a rural co-op, a board member for a municipal utility, or part of a IOU, this is the moment to rethink your resilience strategy.
Athena Intelligence is helping POUs and IOUs build that future with precision wildfire risk modeling and geospatial profiling tools. Our platform delivers actionable intelligence that supports both distributed energy planning and utility-grade wildfire mitigation strategies.
If your community is investing in resilience or exploring microgrids, we encourage you to take proactive steps: become a certified Firewise Community and connect with the Wildfire Insurance Solutions Hub (WISH) to learn how neighborhood-level wildfire assessments can reduce exposure and improve insurability.
Without a data-informed plan, wildfire liabilities may quickly outpace your organization’s financial capacity.