The Large Public Power Council will have a new face advocating for its policy preferences in D.C.
Sarah Vilms has joined LPPC as senior director of policy and external affairs. She hopes to sway public policy in LPPC members' favor as the nation addresses growing needs for power.
"I'm thrilled to be at LPPC," Vilms said. "It's a great organization with really strong and thoughtful leadership."
Vilms joined LPPC from Solar Energy Industries Association, where she was the vice president of strategic growth initiatives. She also has worked for Squire Patton Boggs in its public policy practice.
"[In] my 26 years at Squire Patton Boggs, I really was exposed to all energy, you know, solar, wind, batteries, battery storage, hydro, hydrogen, geothermal," Vilms said.
"We need every electron we can get on this grid right now, I think that there are lots of different projects being pursued, including nuclear, that are really exciting," she said.
"Sarah is a tremendous addition to LPPC," Tom Falcone, the organization's president, said in a news release. "She brings deep energy policy expertise, seasoned advocacy judgment, and strong relationships across Congress and federal agencies. Her experience will strengthen LPPC's work at a pivotal time for public power, as our members invest to meet rising demand, protect reliability and affordability, and support the future of the U.S. electric grid."
Vilms has already identified the key issues she will focus on as she lobbies the federal government. Underlying all policy discussions is the massive need for more power infrastructure.
"Since 2015, our members have invested $100 billion in infrastructure," Vilms said. "Between now and 2030, they expect to add an additional $160.6 billion."
To start, the LPPC is pushing for updates to the private use policy at the IRS and Treasury department. Utilities can't issue tax-exempt bonds for private use, and the current regulations count many contracts with
"Across the country, there's more than 75 large-load tariffs approved by public utility commissions, approved by local utilities," Falcone said. The contracts "ask those large-load customers that when they come to town, they make a long term commitment, because they need so much power, and you may need to build for them."
The current rules count a contract as private use if it lasts more than three years. Typically, Vilms said, the contracts between power providers and data center developers would be around 15 to 20 years. Private use rules also don't allow for contracts with "maximum demand features," Vilms said. That prohibits power providers from requiring deposits, readiness requirements or withdrawal penalties from data center developers.
"These rules, they're so sort of outdated and esoteric that, if entered into, the large load customer becomes the practical owner of the asset," Vilms said. "These contracts also, in a strange way, could jeopardize all the other prior tax-exempt bonds that were issued even years ago by that entity."
The rules are not part of legislation, Vilms said, so Treasury and the IRS could change them without an act of Congress.
LPPC has already started lobbying. "They've been working extensively with Treasury on these private use updates," Vilms said. "Treasury has been responsive, which is a really good sign."
Vilms also views FEMA and federal disaster relief policy as a pressing matter for LPPC's members.
President Donald Trump has made clear his desire to pare down FEMA or eliminate it altogether. In May, a council assembled by the president
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A reduction in funding would force utilities to rely on private insurance, Vilms said, which doesn't cover much of their costs.
"One of our members had a $700 million FEMA claim, and private insurance covered $80 million dollars of it, so that's not really feasible," Vilms said.
LPPC has voiced support for a bill known as the
Finally, Vilms will advocate for a slate of policies around permitting and transmission.
Congress has proposed permitting reform, including the SPEED Act, the PERMIT Act, and amendments to the Endangered Species Act. Vilms said the LPPC supports those measures, along with changes to a number of policies and regulations.
But Vilms wants to stress to lawmakers that increased transmission is not the only way to lower energy costs.
"It's really important to compare alternatives, to decide what would be the most bang for your buck, right?" Vilms said. "Is that generation, is that adding storage, is that doing some more demand side resources, is that green enhancing technology?"
