The "Reliable Power Act" aims to bolster the reliability of the nation's bulk-power system by introducing new requirements for assessing and responding to potential generation shortfalls. It amends the Federal Power Act to mandate that the Electric Reliability Organization (ERO) conduct an annual long-term assessment of the bulk-power system's ability to supply sufficient electric energy. This assessment must analyze the generation resource mix, transmission development, and demand trends, as well as the risk of future supply shortfalls under various weather conditions across different regions. The ERO is also required to determine if additional generation resources are necessary to maintain an adequate level of reliability.

Should the ERO's assessment reveal a risk of generation inadequacy, it must publicly notify the Federal Energy Regulatory Commission (FERC). Upon receiving such notification, FERC is then required to inform other relevant Federal agencies, including the Department of Energy and the Environmental Protection Agency. These Federal agencies must subsequently submit any "covered agency action"—defined as a regulation affecting bulk-power system generation resources—to FERC for review and comment.

FERC, in consultation with the ERO and transmission organizations, will provide comments and recommendations on these proposed regulations, including an assessment of their potential impact on rates and reliability. Critically, a Federal agency cannot finalize a covered agency action until it has responded in writing to FERC's comments and FERC has determined that the action will not likely have a significant negative impact on the bulk-power system's ability to maintain reliability. This process ensures that potential regulatory impacts on power generation are thoroughly vetted for their effects on grid stability.