On September 28, 2017, the Department of Energy (“DOE”) issued a Notice of Proposed Rulemaking (“NOPR”) to the Federal Energy Regulatory Commission (“FERC”) pursuant to §403(a) of the DOE Organization Act. Regulations proposed in the NOPR would require FERC-jurisdictional Independent System Operators (“ISOs”) and Regional Transmission Organizations (“RTOs”) to develop rules for compensation of certain “fuel-secure” electric generating facilities for their grid reliability and resiliency attributes. The NOPR establishes a tight 60-day timeframe for FERC action on the NOPR. On October 2nd, the FERC issued a notice inviting comments on the NOPR, which are due on or before October 23, 2017. As discussed in more detail below, FERC Staff has now issued a list of questions that it invites commenters to address.
DOE explained in the NOPR that existing wholesale markets have failed to provide adequate compensation for “grid reliability and resiliency resources,” including coal-fired and nuclear generators. According to the NOPR, market changes are necessary to prevent the rapid retirement of such resources, which provide electrical reliability and resiliency, reduce the likelihood of electrical outages in the event of fuel disruptions, and provide jobs. Citing an August 2017 DOE Staff report and studies prepared by the North American Electric Reliability Corporation (“NERC”), DOE believes that the premature retirement of fuel-secure generators would threaten the reliability and security of America’s bulk power system.
+Info and Source: http://bit.ly/2kLnUD5