SolarWakeup View: FERC rejects Rick Perry’s proposed rule, initiates new proceeding

By Yann Brandt

What: FERC rejects Rick Perry’s proposed rule, initiates new proceeding

Summary: Rick Perry had proposed a rule (NOPR) which would require regional wholesale power markets to pay subsidies to coal and nuclear power plants based on their ability to stockpile 90 day supply of fuel at the power plant. New FERC Chairman, Kevin McIntyre, had previously delayed the NOPR proceedings and with this ruling terminated it altogether. FERC has asked power markets to provide information on whether FERC needs to take additional action on resilience in build power systems.

SolarWakeup View: We spoke to former FERC Chairman, Jon Wellinghoff, about the NOPR and his opinion that it was unnecessary. Resiliency is based on the weakest link which occurs at the last mile of distribution lines, wood poles and such. The NOPR filed by Rick Perry was largely viewed as a last gasp effort to subsidize coal power plants in wholesale markets struggling to keep up with natural gas and renewable energy pricing. ISOs and RTOs were mostly against the NOPR and should be expected to tell FERC that no rule regarding resiliency is required.

Related: FERC Terminates DOE NOPR