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Major Corporate Buyers Weigh in on FERC Action

Posted by Advanced Energy Buyers Group on Jan 9, 2018

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Advanced Energy Buyers Group Responds to FERC order on “Grid Resilience Pricing Rule”

Large energy consumers reiterate support for competitive wholesale markets and commend FERC’s rejection of Secretary Perry’s “Grid Resilience Pricing” proposal and its decision to instead pursue a holistic review of grid resilience.

Washington, D.C., January 9, 2018 – A group of large energy users commended a decision yesterday by the Federal Energy Regulatory Commission (FERC) to reject the “Grid Resilience Pricing Rule” proposed in October by the Department of Energy (DOE). FERC instead opened a new proceeding to receive input from regional grid operators on a number of questions related to grid resilience. The Advanced Energy Buyers Group—a coalition of large energy purchasers engaging on policies to expand their opportunities to procure energy that is secure, clean, and affordable—weighed in against DOE’s proposal, and today came out in support of FERC’s more measured and holistic approach to consider and respond to any resilience and reliability needs identified by grid operators.

In October, DOE issued a Notice of Proposed Rulemaking (NOPR) that would provide full cost recovery to “fuel secure” generators in FERC-jurisdictional wholesale markets. The proposal was predicated on what DOE described as urgent threats to the reliability and resilience of the nation’s electric grid. The Advanced Energy Buyers Group previously submitted comments to FERC noting the vital importance of reliable electricity, but urging against finalizing the NOPR, saying the proposal would “undermine the competitive market environment… directly harming our businesses.” Instead, the Group requested that any future action by the Commission provide “ample time and opportunity for meaningful analysis, input, and engagement.”

“DOE’s proposal would have undermined competitive markets and imposed huge costs on consumers without providing tangible benefits,” said Malcolm Woolf, senior vice president for policy for Advanced Energy Economy (AEE), a national business organization that facilitates the Advanced Energy Buyers Group. “The Advanced Energy Buyers Group is pleased that FERC has rejected DOE’s proposal to subsidize coal and nuclear facilities with onsite fuel storage in favor of a more measured process to identify and address any gaps in grid resilience.”

The Advanced Energy Buyers Group’s Oct. 23 comments and Nov. 7 reply comments to FERC are available here and here, respectively.

About the Advanced Energy Buyers Group
The Advanced Energy Buyers Group is a business-led coalition of large energy users engaging on policies to expand their opportunities to procure energy that is secure, clean, and affordable. Members of the Advanced Energy Buyers Group are leading companies and organizations spanning a range of market sectors, including technology, retail, education, and manufacturing. AE Buyers Group members share a common interest in expanding their use of advanced energy, with the goal of becoming more competitive, resilient, and sustainable enterprises far into the future. The Advanced Energy Buyers Group is convened and facilitated by Advanced Energy Economy (AEE), a national business association of advanced energy companies.

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