Regulatory Compliance Complexity and Policy Uncertainty
Definition
The electric power sector faces increasing regulatory complexity from federal, state, and ISO levels with conflicting or rapidly changing requirements. The 2025 reconciliation bill rolled back clean energy incentives, expanded foreign entity of concern (FEOC) restrictions affecting supply chain, and narrowed safe-harbor provisions for tax benefits. CFOs must navigate tax credit recapture risk, investment tax credit limitations, and production tax credit phase-out uncertainty. Utilities investing in renewable energy, battery storage, and transmission face mid-project regulatory changes that alter project economics retroactively. FERC Order 1920 affirmed states' role in transmission planning, creating multiple conflicting planning authorities and permitting requirements. PJM, MISO, CAISO, and SPP are each undertaking different market reforms with different timelines, forcing utilities operating in multiple regions to maintain separate compliance and hedging strategies. Compliance staff costs are rising, and legal/regulatory uncertainty is increasing cost of capital for major projects.
Key Findings
- Financial Impact: $5M-$50M
- Frequency: annual
Why This Matters
Regulatory monitoring and compliance automation platforms, FERC tariff and order tracking systems, tax credit and incentive optimization consulting, federal/state regulatory strategy advisory, permitting timeline management and risk analytics
Affected Stakeholders
Chief Financial Officer / Finance Manager, General Manager / Operations Director
Deep Analysis (Premium)
Financial Impact
Data available with full access.
Current Workarounds
Data available with full access.
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Related Business Risks
Massive Generation Interconnection Queue Backlog
Grid Reliability Crisis from Demand Surge
Electricity Price Escalation Pressures Affordability
Transmission Infrastructure Age and Capacity Constraints
Project Delays from Supply Chain and Management Failures
Capacity Market Design Dysfunction and Price Volatility
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