Full Title: CONSUMER IMPACTS OF FERC INTERFERENCE WITH STATE POLICIES
Author(s): MICHAEL GOGGIN and ROB GRAMLICH
Publisher(s): Grid Strategies Llc
Publication Date: August 28, 2019
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The U.S. Federal Energy Regulatory Commission (FERC) has begun a major policy shift that it says is necessary to protect wholesale electricity markets from the impacts of state policies. More states are enacting policies with increasingly ambitious targets for carbon-free resources, in part due to the lack of federal action on greenhouse gas emissions. The new FERC policy, a broad application of the Minimum Offer Price Rule (MOPR), would raise the electricity capacity bids of resources that are deemed to benefit from state policies, increasing costs for consumers and hindering states from achieving their energy policy objectives. A major decision is before the FERC, and more will be coming in the months and years ahead if FERC continues down this road.