Will renewable portfolio standards continue to be cobbled together state by state, as has been the case for a number of years? About 30 states now embraced such standards.

Or will a national renewable portfolio standard come out of Congress? Many renewable manufacturers certainly hope so, but there is little sign of movement.

Congress also is not likely to take up any form of carbon cap and trade.

Those are the headline issues. But below the surface, some interesting factors are shaping local, state, regional and national energy initiatives. And progress is being achieved.

This week I moderated a panel, "Local, Regional, and National Perspectives Converge," at the annual Utility Perspectives conference mounted by Quanta Services in Washington.

Marc Spitzer, a member of the Federal Energy Regulatory Commission, and Nicholas Brown, president of the Southwest Power Pool, served on my panel and, at my request, prepared some written comments about the major themes defining the topic.

Spitzer has a unique vantage point on the state versus federal government debate having served as an Arizona state senator and state regulator before becoming a member of FERC.

 "In the past federal and state policies often collided," Spitzer said. "However, in recent years we have seen extraordinary collaborative efforts where retail and wholesale authority intersect, including important FERC and the National Association of Regulatory Utility Commissioners' collaboratives on demand response, smart grid and competitive procurement.   The joint efforts by FERC and NARUC open up a range of possibilities not considered in previous years.  Stakeholder consensus on smart grid standards is but one example of an open and transparent process leading to a successful result.  The smart grid killer apps are potentially revolutionary and will be realized though enlightened state regulation."

Federal and state cooperation on energy is essential, no matter what political divides exist.

"Current circumstances pose numerous challenges to America's energy infrastructure, most notably environmental and economic," Spitzer said. "Building and paying for new electricity generation, transmission and distribution in the face of these challenges requires cooperation between the federal government and the states.  Having served in both capacities, I am optimistic."

So is SPP's Brown.

"SPP's new Highway/Byway cost allocation policy for new transmission infrastructure is a prime example of local, regional and national policies working well together," Brown said.  Commissioners and their staff from each of our states worked diligently within our Regional State Committee and with our members and customers to break the Gordian Knot of how to make regional cost allocation work."

The lack of clear national energy policy demand flexibility.

"Bottom line: we need a transmission network that can enable many different outcomes," Brown said. "It is because we don't know what the future holds that we should invest in a low-risk asset that can improve grid reliability, optimize long-term economic benefits, and help meet public policy goals. SPP has incorporated local and regional policies into our planning process and created scenarios for the unknown national policies."

Progress must be made - and political roadblocks overcome.

"It's time to move away from allowing 7 percent of our industry's asset base - transmission - to constrain 93 percent of our asset base - generation and distribution," Brown said.