Energy Secretary Rick Perry has granted a 30-day extension sought by Federal Energy Regulatory Commission (FERC) Kevin McIntyre final week to present the regulatory company extra time earlier than it acts on the controversial proposed Grid Resiliency Pricing Rule. In a strongly worded letter, nonetheless, he advised FERC to behave expeditiously to allay reliability threats to the nation’s electrical energy grid.
FERC was required to take remaining motion on the Department of Energy’s (DOE’s) September 28-issued discover of proposed rulemaking (NOPR) inside 60 days following publication within the Federal Register, which occurred on October 10. Under that timetable, FERC’s vote on the rule would have been required by December 11.
In a letter dated December 7—the identical day McIntyre was sworn in as FERC’s chair to switch interim chair Neil Chatterjee—McIntyre stated that FERC had obtained greater than 1,500 solicited feedback and reply feedback on the controversial NOPR. FERC had additionally sworn in two new members inside the previous two weeks, returning to its full complement of 5 members on Thursday for the primary time since October 2015, he famous.
“The proposed extension is vital to afford sufficient time for the brand new Commissioners to contemplate the voluminous report and interact totally in deliberations,” McIntyre stated.
In a letter to McIntyre on December eight, Perry gave FERC—an impartial regulatory authorities company that’s formally organized as a part of the DOE—till January 10, 2018, to behave on the proposed rule. “The Commission is however approved to behave at any time previous to this deadline, and I urge the Commission to behave expeditiously,” Perry wrote.
Perry repeatedly careworn the urgency of the measure, and in robust language, advised FERC the rule was mandatory “in gentle of significant threats to the nation’s electrical energy grid.”
The DOE’s proposed “Grid Resiliency Pricing Rule” directs FERC to train its authority beneath sections 205 and 206 of the Federal Power Act and require that impartial system operators and regional transmission organizations “set up simply and cheap charges for wholesale electrical energy gross sales” for energy crops that present “reliability and resiliency attributes.”
In his letter, Perry wrote that FERC’s “rapid duty” is to “take motion to make sure that era sources with onsite gasoline provides and the power to offer important vitality and ancillary reliability companies together with voltage help, frequency companies, working reserves, and reactive energy are totally valued and, particularly, to train its authority to develop new market guidelines that may obtain this pressing goal.”
Failure to behave expeditiously can be “unjust, unreasonable, and opposite to the general public curiosity,” Perry added.
The overwhelming majority of the quite a few feedback and reply feedback submitted by a broad swath of energy sector stakeholders—from utilities, business teams, and state businesses to impartial analysts, teachers, and environmental organizations—in FERC’s Docket RM18-1 lambasted the DOE’s brief timetable to implement a rule many stated might alter the nation’s markets considerably. Others contested the rule’s legality and vagueness.
For Perry, nonetheless, the sheer variety of feedback was “substantial proof of, and in any other case verify, the menace to the nation’s electrical energy grid and the pressing want for [FERC] motion to reform market guidelines to protect fuel-secure era sources.”
During the 30-day extension, the DOE will in the meantime “look at all choices inside my authority beneath the Department of Energy Organization Act, the Federal Power Act, and another authorities to take remedial motion as mandatory to make sure the safety of the nation’s electrical grid,” Perry stated.
—Sonal Patel is a POWER affiliate editor (@sonalcpatel, @POWERmagazine)
The publish Perry Grants FERC’s Request to Delay Grid Resiliency NOPR, But Calls for Urgent Action appeared first on POWER Magazine.
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