Pricing Grid Resiliency: A Lifeline for Coal and Nuclear?

In late September, the Department of Energy (DOE) issued a Notice of Proposed Rulemaking (NOPR) for consideration by the Federal Energy Regulatory Commission (FERC). Using §403, a little-used provision in the DOE Organization Act of 1977, Secretary Perry proposed that FERC, an independent agency, exercise its authority to establish just and reasonable rates for wholesale electricity sales in the name of grid resiliency. Specifically, the NOPR requires ISO’s and RTO’s create special cost of service compensation for certain types of generation that DOE alleges are essential to protecting grid reliability and resiliency. Facilities would be eligible for this special, non-market… [more]