In a two-part series, Mr. Bay discusses possible changes in FERC policy that would address climate change, enable state clean energy goals, and promote transmission development.
Willkie partner and head of the Energy Regulatory and Enforcement Group Norman Bay was recently interviewed by Greentech Media for a two-part article series on energy policy changes that could occur under the Biden Administration in 2021.
The first article addressed the challenges of enacting a new administration’s energy and climate change imperatives and finding a bipartisan solution to reforming the capacity market structures for Eastern U.S. grid operators that are currently in place. The second article examines the numerous technical and jurisdictional challenges the Biden administration could face as it seeks bipartisan support for transmission policy reform.
In the article, Mr. Bay noted that given the overlap between energy and environmental policy, FERC has a critical role in facilitating the U.S. response to climate change, including supporting electrification and building out the grid. He also said that commissioners could initiate a new proceeding to examine the broader issue of whether forcing state-subsidized resources to be subjected to administratively set minimum offer price bids in capacity markets is an appropriate method to ensure just and reasonable rates. On transmission development, Mr. Bay suggested that the Department of Energy transfer its authority under section 216 of the Federal Power Act to designate National Interest Electric Transmission Corridors to FERC so as to streamline the regulatory process for such projects.
Part I: “FERC Under the Biden Administration: Finding Solutions to the Market Orders Driving States to Open Revolt” can be found here. (Subscription may be required).
Part II: “FERC’s Role in Enabling Transmission to Help Decarbonize the US Power Grid” can be found here. (Subscription may be required).