The pro-NOPR playbook: Supporters broadly interpret FPA to justify DOE proposal

 Hosted by: Ronald Bethea

Supporters of the Department of Energy’s proposal to provide cost recovery for coal and nuclear plants are leaning on a broader interpretation of the Federal Power Act to justify the rule in their comments at the Federal Energy Regulatory Commission.

Comments from key supporters of the DOE proposal, including coal generator FirstEnergy, mining giant Murray Energy and nuclear operator Exelon, argue FERC has interpreted its mandate to provide just and reasonable rates too narrowly, not accounting for the long-term risks to power customers posed by the retirement of baseload generators.

“Exelon believes that RTOs should be given the opportunity to propose such market reforms. But, given the urgency of the problem, we need to 'get it right' the first time,” the company wrote.”

Regardless of the implementation strategy, critics of the NOPR say its proponents face a tough task in persuading FERC to find that its current approach to ratemaking is flawed.