Federal Energy Regulatory Commission (FERC) Acting Chairman Neil Chatterjee, who has mentioned he’s “sympathetic” to a rule that may assist prop up struggling U.S. coal and nuclear energy crops, apparently is able to transfer ahead with an interim plan to maintain financially troubled crops working whereas his company continues to contemplate a market-changing price proposal from the Department of Energy (DOE).
Utility Dive on November 15 reported that Chatterjee is “contemplating regulatory motion,” saying FERC may challenge a “present trigger” order directing regional transmission organizations (RTOs) and impartial system operators (ISOs) to replace market tariffs to maintain baseload crops, or these with “obligatory resilience attributes,” working or present why these crops shouldn’t proceed to stay on-line. That would offer time for FERC to institute guidelines relating to electrical energy grid resilience and market compensation.
Chatterjee, who mentioned he has not detailed his plan with different FERC employees, instructed Utility Dive his proposal can be “messy” and “uncomfortable.” He mentioned his interim step may dovetail with a broader rule on grid resilience to “speed up” the method. Chatterjee final week broached the notion of an interim step in feedback on the S&P Global Platts Energy Podium occasion in Washington, D.C., the place he mentioned “What I don’t need to have is crops shut down whereas we’re doing this longer-term evaluation, so we want an interim step to maintain them afloat.”
Chatterjee additionally had mentioned a short-term answer in a latest interview with Bloomberg, saying “It’s vital to solid that interim lifeline. The worst-case state of affairs is we do the long-term evaluation, we determine we truly did want these crops, however they’re gone, they’re offline and we are able to’t get them again.”
DOE officers this week have defended their company’s discover of proposed rulemaking (NOPR) that may permit energy crops to completely get well their prices of energy era, supplied they maintain a 90-day provide of gas available–a rule designed particularly to assist coal and nuclear crops. The “Grid Resiliency Pricing Rule” was proposed in late September, directing FERC to mandate energy market guidelines to precisely worth what it calls “fuel-secure” era.
Sean Cunningham, who leads the DOE’s Office of Energy Policy and Systems Analysis, in his keynote tackle this week on the National Association of Regulatory Utility Commissioners assembly in Baltimore mentioned he’s assured FERC will “dutifully take into account and undertake a rule that can tackle worth formation within the electrical markets.”
Other FERC officers have considerations in regards to the DOE proposal. Commissioners Robert Powelson and Cheryl LaFleur every have mentioned the NOPR isn’t correct in its characterization of pure fuel’ position in grid stability. Some teams have questioned the DOE’s grid stability examine from earlier this yr, saying it was too supportive of fossil fuel-generated energy on the expense of renewables.
Several teams have been vocal of their opposition to the DOE’s proposed plan, which faces a Dec. 11 deadline. Several states weighed in through the remark interval for the NOPR, many urging FERC to not undertake the rule.
—Darrell Proctor is a POWER affiliate editor (@DarrellProctor1, @POWERmagazine).
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