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FERC chair expects changes to come from grid resilience proceeding

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FERC chair expects changes to come from grid resilience proceeding

The chairman of the Federal Energy Regulatory Commission would be "surprised" if regulators took no action after an evaluation of the resilience of the energy grid that was launched in response to a controversial proposal from the U.S. Department of Energy.

FERC is receiving comments through March 9 from regional transmission organizations, independent system operators and other parties around the country. The comments are part of a proceeding FERC launched in early January to evaluate the ability of the bulk power system to withstand threats and stresses, beginning with forming a common understanding of what a resilient grid looks like. The effort came immediately after the commission rejected a proposed rule from the DOE that would have ensured cost recovery and a return on investment for power plants with "fuel secure" attributes, a definition that favored nuclear and coal-fired power plants.

"Only hypothetically is 'nothing' an option," FERC Chairman Kevin McIntyre told reporters at CERAWeek by IHS Markit in Houston. "I would be surprised if we go through all that process and take no action."

McIntyre, noting that he cannot predict the outcome of the proceeding, said FERC is concerned that some power plants are "helping to keep the lights on" without being compensated for attributes that contribute to grid reliability.

FERC Commissioner Robert Powelson said some states, in promoting certain sources of energy to help achieve emissions reduction goals, are "picking winners and losers."

"The policies all sound good," Powelson said. "I respect those policies, but the reality is, again, the policies aren't synchronizing with ... system reliability, and there lies a very big challenge."

Powelson advocates a form of "cooperative federalism." He said he sees some friction as FERC determines its role in mandating that states adopt certain reliability measures.

"You can go do your experiment on energy policy, whether it's climate policy or energy efficiency, whatever it is," Powelson said. "But at the end of the day, unfortunately ... RTOs right now are kind of shadowboxing if I can use that term lightly with the state regulator, because system reliability is not part of the conversation. It needs to be. It really needs to be."

At the same conference, McIntyre hinted that there will be more clarity on how the commission reviews natural gas infrastructure "very soon."