What Hath FERC Wrought?

by Daniel Farber | July 12, 2018

At the end of June, in a vote divided along partisan lines, the Federal Energy Regulatory Commission (FERC) handed down a sweeping order that will impact electricity markets in a wide swath of the country – likely at the expense of renewable energy and nuclear power. Unfortunately, like Trump's power plant bailout, the result may be to delay the closing of coal-fired power plants. That's a serious problem. A new study by researchers at Resources for the Future shows that a two-year delay in plant closings would cause 353-815 deaths and release 22 million extra tons of carbon. A two-year delay would cause one death for every four or five coal mining jobs it saved for those two years.

The FERC order applies to PJM, which operates a vast part of the national grid encompassing much of the mid-Atlantic, upper South, and Midwest. My first thought was that the order was basically a different version of Trump's bailout plan for coal, but that's unclear to me on closer examination. For one thing, besides taking a swipe at renewables, the FERC order targets nuclear plants that receive state subsidies of the very kind that Trump wants to mandate. But it's clear that both Trump and the GOP majority on FERC look with disfavor on renewable energy.

The FERC order involved what are called capacity markets, which I've discussed at length in an earlier post. As ...

Let a Hundred (Municipal) Flowers Bloom

by Daniel Farber | May 17, 2018
In the era of Trump, one bright spot remains what's happening in cities across the nation. Here are some numbers: 402 U.S. mayors have endorsed the Paris Agreement and announced their intention of meeting its goals, while 118 have endorsed the goal of making their cities 100 percent renewable. A bit of quick research provides a sample of what some major cities are already up to: Atlanta. Atlanta's city council has set ambitious goals: 100 percent renewable energy for city ...

A Win-Win Energy Law in Illinois

by Daniel Farber | January 11, 2017
It went pretty much unheralded by the national media, but in December, Illinois adopted a major new energy law – and with strong bipartisan support. Each side had some things to celebrate. Republican Governor Bruce Rauner touted the impact of the law on utility bills. According to the governor, the law "contains a guaranteed cap that energy prices cannot increase more than 25 cents on the average residential home, and cannot increase more than 1.3 percent on commercial and industrial ...

Florida's Constitutional Amendment 1 Is Anti-Solar Energy

by Joel Mintz | November 08, 2016
Today, Florida residents are voting on a number of items including Constitutional Amendment 1, misleadingly titled "Rights of Electricity Consumers Regarding Solar Energy Choice." Although it gives the appearance of promoting solar energy, Amendment 1 is actually a deceptively worded attempt by big, investor-owned utility companies (including FPL and Duke Energy), masquerading under the banner of "Consumers for Smart Solar," to suppress the growth of solar energy in the Sunshine State and maintain the utilities' current monopoly in the state's ...

Maryland's Environmental and Energy Policy Moving Backward under the Hogan Administration

by Jeremy Baker | September 29, 2016
Larry Hogan promised to be the "best environmental governor that's ever served" in Maryland. But three recent policy developments call that claim into question.  Earlier this year, the Hogan administration vetoed the Clean Energy Jobs Act, which would have raised Maryland's renewable energy portfolio standard – the share of electricity that energy providers must derive from renewable sources – from 20 percent by 2022 to 25 percent by 2020. A stronger commitment to renewable energy could have had a tremendous ...

The Reliability of the Sun and the Wind

by Lesley McAllister | April 17, 2013
The following is reposted from the Environmental Law Prof Blog. The electric utility industry often complains that renewable energy proponents don’t pay enough attention to the intermittency of renewable resources.  A common refrain is “the sun doesn’t always shine and the wind doesn’t always blow.”  The industry then reminds us that, for a reliable electricity grid, supply and demand must be in balance at all times. The implication is that this will be impossible if we rely heavily on renewable energy. A new report published by the ...
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