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E&E News: FERC Urged to Make Way for Carbon Pricing

Posted by Arianna Skibell on Oct 1, 2020

E&E News reported on FERC's Carbon Pricing technical conference, quoting AEE's Jeff Dennis. Read excerpts below and the full piece here (sub. req.).

Carbon pricing in regional wholesale power markets is a good if not necessary step to combat climate change and ensure reasonable rates for electricity customers. That was the consensus yesterday among 30 energy sector panelists who discussed the pricing mechanism before the Federal Energy Regulatory Commission.


In an all-day, long-anticipated virtual conference, an array of academics, grid operators and utility executives discussed FERC's legal authority, various designs for adding a carbon price in regional markets — and potential pitfalls.

"Far from a debate about whether the Commission has any authority in this area at all, there was remarkable consensus that the Federal Power Act does not restrict FERC from incorporating state carbon pricing into wholesale markets," Jeff Dennis, general counsel and managing director at Advanced Energy Economy, said in an email. "In fact, there was substantial agreement that the statute obligates FERC to consider how state carbon policies" can fit into the market, he added.

That could send a signal to states that they can develop carbon pricing programs without fear that FERC would reject those proposals, Dennis said.

Read the entire E&E News piece here (sub. req.).

Topics: AEE In The News