Coal Compensation

DOE nudges FERC by filing Notice of Proposed Rulemaking

In an update to a recent Direct & Current item, the Department of Energy pushed the Federal Energy Regulatory Commission September 29 to increase compensation for generators providing baseload power supplies, proposing a wide-ranging makeover for the nation’s competitive power markets, specifically intended to help traditional forms of energy such as coal, nuclear, and hydroelectric generation sites.

DOE filed a Notice of Proposed Rulemaking (NOPR) under the Federal Power Act to enhance grid resilience, directing FERC to “accurately price generation resources necessary to maintain reliability and resiliency.”

Recently appointed FERC chair Neil Chatterjee was expected to be instrumental in the process, as he has long been a supporter of compensation initiatives for traditional energy forms. The rule would provide for “recovery of costs of fuel-secure generation units frequently relied upon to make our grid reliable and resilient.”

The filing comes after the completion of a long-debated grid reliability study from the DOE that utimately compelled federal regulators to increase compensation for baseload generators. The NOPR directs FERC to act within 60 days. The rule would require power market operators to “establish just and reasonable rate tariffs for the recovery of costs and a fair rate of return.” The NOPR has not yet provided specifics: such as how said generators would be compensated or where the money would come from. However, the presumed blueprint for the plan would appear to give immediate assistance to coal, nuclear and hydroelectric generators, which all have multi-day fuel supplies onsite.

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Trackbacks/Pingbacks

  1. Griddle Me That | Electrical Apparatus Magazine - October 19, 2017

    […] the Notice of Proposed Rulemaking (NOPR) is adequate to be passed as a final rule. The NOPR was issued September 29 and proposed compensation for traditional forms of energy. LaFleur and others question the scarcity […]

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