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Joint filing says DOE proposal would “prop up uneconomic generation that is unable to compete and not otherwise needed for reliability”

WASHINGTON, D.C. October 23, 2017 – A diverse group of 12 energy industry associations representing oil, natural gas, wind, solar, efficiency, and other energy technologies today submitted comments to the Federal Energy Regulatory Commission (FERC) in response to the Department of Energy’s (DOE) proposed rulemaking on grid resiliency pricing. In joint comments, this broad group of energy industry associations urged FERC not to adopt DOE’s proposed rule to provide out-of-market financial support to uneconomic coal and nuclear power plants in the wholesale electricity markets overseen by FERC.

 

Specifically, the energy industry associations’ comments state that: 

  • DOE’s request for a rule that provides discriminatory compensation to certain coal and nuclear resources is based on a “justification for the proposed payments – resiliency – [which] is not well defined, nor is it demonstrated to be lacking” in the regions that would be affected by the rule;
  • The DOE request “fails to provide substantial evidence” for its claim that “RTO/ISO markets do not adequately value fuel security,” and fails to justify its conclusion that “full cost of service payments are therefore needed to prevent ‘early retirement’ of resources with 90 days of on-site fuel supply”;
  • Rather, “there is substantial evidence showing that electric systems that lack, or are transitioning to lesser reliance on, coal and nuclear resources are nonetheless operated in a manner that is both reliable and resilient,” and that “outages caused by disruptions of fuel supply to generators appear to be virtually nonexistent.”
  • Therefore, the proposed DOE rule would “prop up uneconomic generation that is unable to compete … and that is not otherwise needed for reliability.”
  • “Accordingly, the proposed rule has not been shown to be just and reasonable and cannot be adopted by the Commission.”

Separately, ACORE submitted individual comments to FERC, was a signatory on joint-comments with the “Advanced, Renewable and Storage Energy Industry Associations” and published a new issue brief on the NOPR. Our paper outlines the significant negative impacts associated with the proposal and also includes a set recommendations that would better promote electric power system reliability, resilience and affordability.

The following energy industry associations submitted the comments jointly:

  • American Council on Renewable Energy
  • Advanced Energy Economy
  • American Biogas Council
  • American Petroleum Institute
  • American Wind Energy Association
  • Electric Power Supply Association
  • Electricity Consumers Resource Council
  • Energy Storage Association
  • Independent Petroleum Association of America
  • Interstate Natural Gas Association of America
  • Natural Gas Supply Association
  • Solar Energy Industries Association

Several other groups and individual energy companies signed the joint comments as well. Representatives of energy industry associations joining in this filing will be available to speak about their opposition to DOE’s proposed rule and take questions in a press briefing:

WHEN: Tues., Oct. 24, at 10 am EDT

WHERE: K&L Gates LLP, Conference Room 1-B
1601 K Street, NW (entrance on 16th St.), Washington, D.C. 20006

CALL-IN: (202) 753-8326 (no PIN required)

LEARN MORE ABOUT THE INDUSTRY GROUPS:
American Council on Renewable Energy at www.acore.org
Advanced Energy Economy at www.aee.net
American Biogas Council at www.americanbiogascouncil.org
American Petroleum Institute at www.api.org
American Wind Energy Association at www.awea.org/DOEresiliencyrule
Electric Power Supply Association at https://epsa.org
Electricity Consumers Resource Council at https://elcon.org
Energy Storage Association at http://energystorage.org/
Independent Petroleum Association of America at www.ipaa.org
Interstate Natural Gas Association of America at www.ingaa.org
Natural Gas Supply Association at www.ngsa.org
Solar Energy Industries Association at www.seia.org

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About ACORE
The American Council on Renewable Energy (ACORE) is a national non-profit organization leading the transition to a renewable energy economy. With hundreds of member companies from across the spectrum of renewable energy technologies, consumers and investors, ACORE is uniquely positioned to promote the policies and financial structures essential to growth in the renewable energy sector. Our annual forums in Washington, D.C., New York and San Francisco set the industry standard in providing important venues for key leaders to meet, discuss recent developments, and hear the latest from senior government officials and seasoned experts. For more information, visit the ACORE website and follow @ACORE on Twitter.

Media Contact:
Gil Jenkins
Vice President of Communications
jenkins@acore.org | 202.777.7584

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