Posted November 2, 2017
OK, going a little more visual today. Leading off, we’ve got a terrific new video that shows natural gas is the “heart” of our country’s 21st-century electric power system – very timely given the heat that’s being generated by Energy Secretary Rick Perry’s proposal for the Federal Energy Regulatory Commission (FERC) to alter the electricity marketplace in ways that would favor certain generating facilities. The video makes these important points: Natural gas-fueled generation has unique attributes that enhance the reliability and resiliency of the U.S. power system; natural gas-fueled generation can quickly ramp up or down depending on generation needs; and competitive markets have made natural gas the fuel of choice, benefiting consumers.
Posted October 31, 2017
Posted October 17, 2017
It’s unclear what the Federal Energy Regulatory Commission (FERC) will do with U.S. Energy Secretary Rick Perry’s request that FERC alter the electricity marketplace in favor of certain generating facilities – a proposal that by design would favor some energy sources over others.
Perry says his request to FERC was meant to be a conversation starter. But if it’s a conversation about government tilting the electricity market one way or another, it’s the wrong one.
Indeed, as the secretary tried to explain his FERC order to lawmakers at a House hearing last week he missed the mark when he questioned the reliability of natural gas, the leading fuel for U.S. electricity generation in 2016, and asserted that the natural gas and oil industry receives federal subsidies – it doesn’t.
Posted October 4, 2017
Some initial takeaways from this week’s House hearing, during which there was considerable discussion of the U.S. Energy Department’s recent request that a new electricity pricing program be developed by the Federal Energy Regulatory Commission – one that effectively would favor some energy sources over others.First, as we argued twice last week (read here and here), markets – not preferences, mechanisms, subsidies or whatever – should be allowed to select energy sources for power generation, because they reward innovation, promote efficiency, lower prices and work to benefit consumers.
Posted September 29, 2017
Earlier this week we wrote about the market perils of government efforts to favor some energy sources over others (“On Energy, Let Markets Choose”). We may as well have been talking about Friday’s U.S. Energy Department request that the Federal Energy Regulatory Commission (FERC) develop a new electricity pricing program that lets some power plants recover the costs of providing that power.Whatever you call these preferential measures – subsidies, mechanisms, credits – they tend to foil the way markets, if left to themselves, reward innovation, promote efficiency, lower prices and work to benefit consumers.