America’s energy abundance makes our country stronger, more prosperous and secure in the world. Safely harnessing this energy requires technology, innovation, access to reserves and smart policy. When these come together, we all benefit.
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.
With talks between the U.S., Canada and Mexico on modernizing NAFTA heading for a fourth round this week, our negotiators can help ensure the global competitiveness of U.S. energy companies by working to retain strong protections for U.S. investments abroad through the agreement’s investment protections and investor-state dispute settlement (ISDS) provision.ISDS sounds a little wonky, but its basic mission is pretty straightforward: It helps protect U.S. investors from being treated unfairly by host nation governments. Conversely, there’s potential jeopardy if the U.S. allows ISDS to be weakened or removed in the current talks. It could undermine ISDS provisions globally in other treaties and agreements.
We support all-of-the-above energy – the concept that America is strongest and its citizens are best served when all of our country’s energy sources play their part. We’re also for the important role markets play in determining energy sources, because markets reward innovation, spur efficiency, lower prices and work to benefit consumers. That said, a new study that basically argues market-distorting subsidies enjoyed by some energies should be followed by market-distorting subsidies for others makes little sense.