Friday, October 20, 2017

Senate Consumer Affairs Committee To Consider FERC Coal/Nuclear Pricing Resolution Oct. 24

The Senate Consumer Affairs & Professional Licensure Committee is scheduled to meet on October 24 to consider Senate Resolution 227 (Aument-R-Lancaster) urging the Federal Energy Regulatory Commission to quickly implement policies to ensure baseload electricity generation (like coal and nuclear) are compensated for all the positive attributes they provide to the electric system (sponsor summary).
The resolution was introduced by Sen. Ryan Aument (R-Lancaster) and Sen. Donald White (R-Indiana) the chairs of the Nuclear Energy and Coal Caucuses.  The text of the co-sponsor memo introducing the resolution said--
“As the House co-chairs of the Nuclear Energy and Coal Caucuses, we have been raising concerns over the loss of nuclear and coal power plants in Pennsylvania.
“Our concerns have been focused on several issues, including the economic impact of premature plant closures, the potential loss of coal and nuclear plants as a strategic asset for the bulk power system, the environmental consideration of losing the largest and most reliable carbon-free and other fuel-diverse electricity production, and the long-term impacts to consumers should the overall electric grid become overly dependent on any one generation source.
“Pennsylvania is fortunate to be a top electricity producer from many sources, including nuclear, coal, gas and hydroelectric power. Together, coal, nuclear and hydroelectric power produce 67 percent of our Commonwealth’s electricity and create fuel diversity in our supply of energy.
“As such, the loss of these fuel-secure resources matters greatly. For those who are not aware, fuel-secure generation resources are unique in that they are capable of storing fuel for their plants onsite for long periods of time.
“On September 28, 2017, the United States Department of Energy (“DOE”) took a significant step forward in addressing the loss of fuel-secure generation by issuing a new rule directing the Federal Energy Regulatory Commission (“FERC”) to ensure that fuel-secure generators are adequately compensated so that they can remain a viable component of the bulk power system.
“In its rule, DOE noted the following:
“The resiliency of the nation’s electric grid is threatened by the premature retirements of power plants that can withstand major fuel supply disruptions caused by natural or man-made disasters and, in those critical times, continue to provide electric energy, capacity, and essential grid reliability services. These fuel-secure resources are indispensable for the reliability and resiliency of our electric grid-and therefore indispensable for our economic and national security. It is time for the Commission to issue rules to protect the American people from energy outages expected to result from the loss of this fuel-secure generation capacity.”
“We agree, which is why we are seeking your support.
“In the very near future, we will be introducing a concurrent resolution urging the FERC to swiftly consider DOE’s proposed Grid Resiliency Pricing Rule and implement policies and adopt tariffs to ensure fuel-secure generation resources receive proper compensation for the positive attributes they provide our nation’s and Commonwealth’s electric system – in this case, reliability and resiliency.
“Our goal is to promote Pennsylvania’s energy resources to the betterment of our economy, people and overall prosperity and to protect against unforeseen challenges that could threaten our electric grid, such as the polar vortex in 2014.
“We are all aware of the challenges that the coal and nuclear sectors of our energy economy have been facing in recent years. Please join us to encourage the federal government to finally address these very serious issues.”
An identical resolution has been introduced in the House-- House Resolution 576 (Pyle-R-Armstrong).
The meeting will be held in Room 461 starting at noon.
Sen. Robert Tomlinson (R-Bucks) serves as Majority Chair and can be contacted by sending email to: rtomlinson@pasen.gov.  Sen. Lisa Boscola (D-Lehigh) serves as Minority Chair and can be contacted by sending email to: boscola@pasenate.com.

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