Power plants no longer have to pay to send extra reactive power to the grid

The US energy regulator has decided that power plants cannot be charged for providing a specific type of electrical power called "reactive power" within normal limits. This means transmission companies can no longer include these charges in their rates for connecting to the grid.

Power plants have been paying extra fees for a necessary part of grid stability. This rule change removes a hidden cost for generators, especially smaller ones, who often produce more reactive power than the grid needs at certain times. It could make it cheaper to connect new power sources, particularly renewables, to the existing grid.