EPSA again urges FERC action on out of market subsidies
The Electric Power Supply Association (EPSA) recently made two filings with the Federal Energy Regulatory Commission (FERC) repeating its appeal for swift action to counteract the effects of the Zero Emission Credit (ZEC) schemes within the New York ISO and PJM Interconnection wholesale markets.
The New York Public Service Commission and the Illinois legislature adopted the ZEC schemes last year.
“The Commission should not allow opposing parties to obfuscate matters, and should remain focused on the issue at hand to address the recognized threat to the markets through imposition of a minimum offer price rule (MOPR) on existing units for the capacity auctions used in New York and PJM to protect consumers and markets,” EPSA President John E. Shelk said. “FERC should take this corrective action and then work with all stakeholders on fuel-neutral market reforms and State concerns consistent with competitive market principles.”
EPSA stressed that the New York ISO, PJM and their market monitors have recognized EPSA’s concerns.
“The negative consumer impacts and market distortions stemming from ZECs and related schemes are a hot topic at this week’s NARUC meetings of State utility regulators in Washington, DC,” Shelk said. “EPSA is encouraged by the growing recognition that such discriminatory measures make the situation worse, not better.”
EPSA also emphasized that it is not requesting that FERC comment on whether the ZECs are unlawful under the Federal Power Act, only to implement measures to mitigate their effects.
