Should FERC rewrite rules or let states make reforms?
Idaho has a problem with PURPA. So does North Carolina, and other states in between. Utilities have complaints too. Consider industry groups like EEI, representing investor-owned companies, NRECA, representing co-ops, and even NARUC, representing state utility regulators. Each has proposed new rules to fix PURPA, a longtime favorite of enviros. And don’t forget Berkshire Hathaway.
A response to the article by Robert Borlick in our July 2016 Issue
Bob Borlick took to task FERC, Charlie Cicchetti and the Supreme Court in the context of FERC Order 745. Bob’s key point is his view that “Order 745 overcompensates demand response.” Bob’s argument starts from an implicit but false premise.
Many see a higher cap as a windfall for nuclear and coal.
FERC’s new rulemaking proposal would allow generators to tender supply bids higher than $1,000 per megawatt-hour, if it really costs that much to buy fuel to generate power. Some opponents say that may be OK for gas-fired turbines, but it’s not needed for nuclear or coal-fired plants.
Still Beyond the Pale?
Two decades into our grand experiment with wholesale power markets and we’re still debating the need for a cap on prices.
We talked with FERC Commissioner Tony Clark, who has said he will not seek a second term.
Tony Clark, with Pat McMurray
Commissioner Clark is serving his first term at FERC and formerly served as a member of the North Dakota Public Service Commission. He was interviewed by Pat McMurray, who has a long background in the energy business.
Why $3.3 Billion Northeast Energy Direct Pipeline Was Defeated
It’s a David and Goliath story. But instead of a slingshot, David in this case fired off a stiff legal challenge to defeat the giant.
One of the worst orders FERC has ever produced
Order 745 overcompensates demand response, unduly discriminates against wholesale suppliers, sanctions and institutionally enforces the exercise of monopsony market power, and will ultimately raise electricity prices.
New rule would align price settlements with real-time dispatch.
A misalignment of scheduling and price settlement opens the door to mischief.
Why trying to fix mandatory capacity markets is like trying to win a game of Whack-A-Mole (Parts I & II)
Delia D. Patterson and Harvey L. Reiter
FERC has little to show for more than a decade of tinkering with mandatory capacity markets.
Trying to fix mandatory capacity markets like trying to win at Whack-A-Mole, Part II
Delia Patterson and Harvey Reiter
The proposals do not mandate participation in mandatory auction markets, much less try to set artificial floors on seller bids.