The Federal Energy Regulatory Commission's draft policy statement on carbon pricing in wholesale power markets was met with support from merchant generators and skepticism from states with individual clean energy policies. A draft policy statement issued last month by the Federal Energy Regulatory Commission encouraging carbon pricing rules in wholesale power markets has generated mixed feedback. Merchant generators and some industry trade groups urged the agency to move forward with the proposed guidelines for accommodating state-set carbon pricing in wholesale power markets, while environmental groups and states themselves signaled skepticism and, in some cases, outright opposition. FERC issued the draft policy statement in October after hosting a technical conference (AD20-14) on carbon pricing following a series of orders aimed at countering the market impacts of states' clean energy policies, which in many cases include renewable energy mandates. During the technical conference, legal experts generally agreed that FERC has authority under Section 205 of the Federal Power Act to review proposals submitted by regional transmission organizations and independent system operators that incorporate a statedetermined price on carbon emissions.
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