The Public Utility Commission Monday submitted formal comments to the Federal Energy Regulatory Commission saying the U.S. Department of Energy grid reliability and resilience pricing proposal benefitting coal and nuclear power plants “threatens the efficient functioning of organized competitive wholesale electricity markets by providing de facto cost of service treatment to coal and nuclear generation without adequate justification.”
The comments point out the PUC has historically been supportive of competitive wholesale markets and has actively advocated in favor of policy and regulatory proposals at FERC that promote the success of competitive markets.
Competitive wholesales markets, the PUC said, have “translated into equally vibrant retail choice markets in PA…” and the proposed DOE rule could put Pennsylvania’s retail choice programs at risk.
The comments also question one justification for the DOE proposal saying the 2014 Polar Vortex is an “inadequate and inappropriate justification” for the proposed rule.
The PUC comment recommend the stakeholder process now underway through the PJM Interconnection should be permitted to go forward since they are discussing the resilience and reliability issues at the level of a regional electricity market.
A copy of the comments are available online.
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