On Oct. 13, 2017, the Environmental and Energy Law Program welcomed a group of consumer advocates, former state regulators, environmental advocates, economic analysts, wholesale electricity market participants, and law professors to discuss the future of wholesale electricity markets. Ari Peskoe and Kate Konschnik of EELP facilitated the workshop which focused on how regulatory models may inhibit or foster the development of a cleaner electric grid.
To frame the workshop, participants explored three paths forward for market reform identified by FERC Commissioner Cheryl LaFleur for the eastern regional electricity markets: 1) redesign markets to account for state renewable energy and carbon reduction policies; 2) require that states, rather than FERC-regulated markets, have primary responsibility for ensuring sufficient capacity on the grid, to return the responsibility to states; and 3) maintain the status quo and resolve state/FERC tensions through litigation.
Participants also discussed the recent Department of Energy proposed rule on “resiliency pricing” in electricity markets (which would assure that coal and nuclear units operate profitably in wholesale electricity markets), and what role FERC might play in addressing the “resiliency” of the electric grid. To learn more about resiliency pricing and the Grid Study being used to justify it, click here.