Daily Energy Insider covered energy industry groups' ask that FERC consider carbon pricing policies in wholesale markets, quoting AEE's Jeff Dennis. Read excerpts below and the entire Daily Energy Insider piece here.
A coalition of energy industry groups recently urged the Federal Energy Regulatory Commission (FERC) to examine the implications of carbon pricing policies in wholesale electricity markets. The request — submitted by electric power generators, trade associations, and think tank experts — comes at a time when many states are already considering policies that reduce carbon emissions in the electric sector.
“The unique features of organized wholesale electricity markets create an opportunity for integrating policies that directly price carbon emissions into energy market operations. The coalition highlight that a number of organized markets such as the New York Independent System Operator have supported or are considering how to incorporate a price on carbon,” the signatories wrote in a letter to FERC officials.
The signatories include officials from the Advanced Energy Economy, the American Council on Renewable Energy, the American Wind Energy Association, Calpine Corporation, Competitive Power Ventures, the Electric Power Supply Association, PJM Power Providers Group, the Independent Power Producers of New York, the Natural Gas Supply Association, LS Power, NextEra Energy, the R Street Institute, and Vistra Energy...
“Two overwhelming factors are impacting wholesale energy markets today,” Jeff Dennis, general counsel and managing director at Advanced Energy Economy, said. “Low- and zero-carbon advanced energy technologies have become the most cost-effective options for meeting consumer needs. And state policymakers are enacting policies, and large corporate customers are making commitments to 100 percent clean energy. Pricing carbon emissions is one of the tools, along with complementary policies, that states are considering to make this transition quickly and cost-effectively. FERC convening a dialogue on carbon pricing would be a good first step toward a much-needed conversation about how the entire suite of state policies can be better integrated into the competitive wholesale electricity markets...”
Read the entire Daily Energy Insider piece here.