NEPPA Engages FERC Chair Norman Bay: "Your Position Is Very Similar to Mine"

• NEPPA Engages FERC Chair
• House Energy Bill Takes Harmful Turn  
• Senate Dems Introduce Alternative "Energy Bill"
• Elsewhere in Congress: Appropriations, Pope visit, Tax extenders, GMD letter

On Sept. 23, NEPPA Legislative Committee members (Brian Forshaw, CMEEC; Judy Gove, NHEC; and Paul Heanue, Hingham) met with Federal Energy Regulatory Commission (FERC) Chairman Norman Bay and staff.  

Since Bay became FERC Chair in April, industry groups have been trying to gauge Bay’s priorities and how he might respond to industry and Congressional pressure.  In the meeting, NEPPA learned that Bay was energetic, bright, and focused on consumer outcomes – but is so far swimming against the current at FERC.  Hearing NEPPA’s thanks for his favorable positions on consumer issues, Bay joked that he wished his colleagues would vote with him more often.  

Bay also agreed with NEPPA that more data and analytic information will help cost-benefit analyses result in "just and reasonable" rates.  He knows that New England electric rates are the highest in the U.S. and said he understands how that would affect commercial and industrial customer decisions.  On capacity markets, Bay asked, "Why hasn’t public power developed more generation as a result of the capacity markets?"  He had thought that perhaps they would act to fill the gaps where merchant generators would not.  

NEPPA members explained the risk of having to pay twice if their generation did not clear the market, to which Bay remarked earnestly, "interesting."  He asked if the environmental rules were a similar disincentive to build, or if public power might join together to fund a strategically located plant.  Forshaw explained that the uncertainty of the market rules was the biggest disincentive to such an investment, and it made more sense to work "behind the meter."  Bay understood that logic, but it appeared to be news that the rules were such a hindrance.

When given the opportunity to ask questions of the group, Bay said, "I thought public power initially supported the move to competitive markets – what happened?"  Forshaw explained that public power, including NEPPA,  supported competitive wholesale markets and still does, but as market rules began tipping in favor of generators at the expense of consumers, they began to have problems.

Toward the conclusion of the meeting, Bay said, "Your position is very similar to mine. Markets can have benefits but the rules must be well-designed."  NEPPA plans to follow up with an invitation to visit the region, as well as a similar outreach to new Commissioner Colette Honorable, who may be an ally for Bay.

To read the complete legislative update including the following topics, click the links below: