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Department of Energy and Related Commissions
• End undue discrimination that allows subsidized resources to distort price formation in RTOs.
• §6©Affirm its commitment that states will decide whether to join an RTO instead of imposing RTOs on regions that do not want them. FERC should also consider allowing states to enter into non-RTO power pools with alternative structures for the sharing of resources and electric generation.
FERC: ELECTRIC TRANSMISSION
Mission/Overview
Under the Federal Power Act, FERC has the authority to regulate the rates, terms, and conditions of interstate electric transmission. (Pursuant to court cases, interstate transmission can be entirely within a state, although the part of Texas served by ERCOT is not under FERC transmission jurisdiction.)
Needed Reforms
FERC has been considering how to plan for and allocate costs for new transmission lines and how new generation resources will be interconnected to the transmission grid. (Transmission expansion and replacement decisions are usually made by local utilities or by an RTO or regional planning entity). Through two major rulemakings,"* FERC is attempting to facilitate the building of more long-range transmission lines and to socialize more of the costs of transmission buildouts to more customers in order to make it cheaper for renewable developers (primarily) to interconnect to the grid and sell their power. Socializing such costs is a form of subsidy for generators and will cause further price distortions in RTOs and ISOs that will make it less economical for reliable, dispatchable resources like coal, nuclear, and natural gas to stay operational and support reliability.”
Also, under the Infrastructure Investment and Jobs Act, DOE and FERC are granted authority to site and permit high-priority transmission lines as National Interest Electric Transmission Corridors (NIETCs). The Inflation Reduction Act provides funding to DOE to support transmission expansion.’”° These initiatives will undermine state input and decision-making. FERC will consider rules on how NIETC transmission applications are to be made.
New Policies
FERC should either change course on its existing transmission rulemakings (if still in progress) or issue a new rulemaking to: