State Energy Subsidies and Competitive Wholesale Electricity Markets

On June 10, 2016, Rep. Fred Upton (R-MI), Chairman of the House Energy and Commerce Committee and Rep. Ed Whitfield (R-KY), Energy and Power Subcommittee Chairman, sent a letter to the Federal Energy Regulatory Commission (FERC) regarding the state of organized wholesale electricity markets. This included questions on how federal and state energy subsidies affect organized markets and the jurisdictional “bright line” between state (retail) and federal (wholesale) authority. Deployment of new technologies, regulations, and subsidies are affecting the outcomes and compositions of electricity markets. The Congressmen are exploring whether the Federal Power Act should be altered to help markets… [more]