Florida PSC approves Gulf Power’s purchase of renewable energy produced at municipal solid waste plant


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Gulf Power renewable energy contract underscores a Florida PSC-approved power purchase from Bay County's municipal solid waste plant, delivering 13.65 MW at a fixed price, boosting fuel diversity, lowering landfill waste, and saving customers money.

 

Key Points

A fixed-price PPA for 13.65 MW from Bay County's waste-to-energy plant, approved by Florida PSC to cut costs.

✅ Fixed-price purchase; pay only for energy produced.

✅ 13.65 MW from Bay County waste-to-energy facility.

✅ Cuts landfill waste and natural gas dependency.

 

The Florida Public Service Commission (PSC) approved Tuesday a contract under which Gulf Power Company will purchase all the electricity generated by the Bay County Resource Recovery Facility, a municipal solid waste plant, similar to SaskPower-Manitoba Hydro deal structures seen elsewhere, over the next six years.

“Gulf’s renewable energy purchase promotes Florida’s fuel diversity, further reducing our dependency on natural gas,” PSC Chairperson Julie Brown said. “This renewable energy option also reduces landfill waste, saves customers money, and serves the public interest.”

The contract provides for Gulf to acquire the Panama City facility’s 13.65 megawatts of renewable generation for its customers beginning in July 2017. Gulf will pay a fixed price, aligned with approaches in Alberta's clean electricity RFP programs, and only pays for the energy produced. The contract is expected to save approximately $250,000 and provides security for customers, a contrast to overruns at the Kemper power plant project, because if the plant does not supply energy, Gulf does not have to provide payment.

This contract is the third renewable energy contract between Gulf and Bay County, at a time when the Southern California plant closures may be postponed, continuing agreements approved in 2008 and 2014. In making the decision, the PSC considered Gulf’s need for power and developments such as the Turkey Point license renewal process, as well as the contract’s cost-effectiveness, payment provisions, and performance guarantees, as required by rule.

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Ontario announces SMR plans to four reactors at Darlington

Ontario Darlington SMR Expansion advances four GE Hitachi BWRX-300 reactors with OPG, adding 1,200 MW of baseload nuclear power to support electrification, grid reliability, and clean energy growth across Ontario and Saskatchewan.

 

Key Points

Plan to build four BWRX-300 SMRs at Darlington, delivering 1,200 MW of clean, reliable baseload power under OPG.

✅ Four GE Hitachi BWRX-300 units, 1,200 MW total

✅ Shared infrastructure cuts costs and timelines

✅ Supports electrification, grid reliability, net zero

 

The day after Ontario announced it would be building an additional 4,800 megawatts of nuclear reactors at Bruce Nuclear Generating Station, the province announced it would be dramatically expanding its planned rollout of small modular reactors at its Darlington Nuclear Generating Station, and confirmed plans to refurbish Pickering B as part of its broader strategy.

Ontario Power Generation OPG was always going to be the first to build the GE-Hitachi BWRX-300 small modular reactor SMR, with the U.S.’s Tennessee Valley Authority among others like SaskPower and several European nations following suit. But the OPG was originally going to build just one. On July 7, OPG and the Province of Ontario announced they would be bumping that up to four units of the BWRX-300.

The Ontario government is working with Ontario Power Generation (OPG) to commence planning and licensing for three additional small modular reactors (SMRs), for a total of four SMRs at the Darlington nuclear site. Once deployed, these four units would produce a total 1,200 megawatts (MW) of electricity, equivalent to powering 1.2 million homes, helping to meet increasing demand from electrification and fuel the province’s strong economic growth, the Ontario Ministry of Energy said in a release.

“Our government’s open for business approach has led to unprecedented investments across the province — from electric vehicles and battery manufacturing to critical minerals to green steel,” said Todd Smith, Minister of Energy. “Expanding Ontario’s world-leading SMR program will ensure we have the reliable, affordable and clean electricity we need to power the next major international investment, the new homes we are building and industries as they grow and electrify.”

For the first time since 2005, Ontario’s electricity demand is rising. While the government has implemented its plan to meet rising electricity demand this decade, the experts at Ontario’s Independent Electricity System Operator have recommended the province advance new nuclear generation and pursue life-extension at Pickering NGS to provide reliable, baseload power to meet increasing electricity needs in the 2030s and beyond.

Subject to Ontario Government and Canadian Nuclear Safety Commission (CNSC) regulatory approvals on construction, the additional SMRs could come online between 2034 and 2036. That is the same timeframe that SaskPower is looking at for its first, and possibly second, units.

The initial unit is expected to go online in 2028 following Ontario’s first SMR groundbreaking at Darlington.

The Darlington site, which already hosts four reactors, was originally considered for an expansion of “large nuclear,” which is why OPG was already well on its way for site approvals of additional nuclear power generation. The plan changed to one, singular, SMR. Now that has been updated to four.

The announcement has significant impact on Saskatchewan, and its plans to build four of its own SMRs. The timing would allow Ontario Power Generation to apply learnings from the construction of the first unit to deliver cost savings on subsequent units. This is also the strategy SaskPower is following – allow Ontario to build the first, then learn from that experience.

Building multiple units will also allow common infrastructure such as cooling water intake, transmission connection and control room to be utilized by all four units instead of just one, reducing costs even further, the Ministry said.

“A fleet of SMRs at the Darlington New Nuclear Site is key to meeting growing electricity demands and net zero goals,” said Ken Hartwick, OPG President and CEO. “OPG has proven its large nuclear project expertise through the on-time, on budget Darlington Refurbishment project. By taking a similar approach to building a fleet of SMRs, we will deliver cost and schedule savings, and power 1.2 million homes from this site by the mid-2030s.”

The Darlington SMR project is situated on the traditional and treaty territories of the seven Williams Treaties First Nations and is also located within the traditional territory of the Huron Wendat peoples. OPG is actively engaging and consulting with potentially impacted Indigenous communities, including exploring economic opportunities in the Darlington SMR project such as commercial participation and employment.

The Ministry noted, “Ontario’s robust nuclear supply chain is uniquely positioned to support SMR development and deployment in Ontario, Canada and globally. Building additional SMRs at Darlington would provide more opportunities for Ontario companies and broader economic benefits as suppliers of nuclear equipment, components, and services to make further investments to expand their operation to serve the growing SMR market both domestically and abroad.”

Supporting new SMR development and investing in nuclear power is part of the Ontario government’s larger plan, aligned with a Canadian interprovincial nuclear initiative that brings provinces together, to prepare for electricity demand in the 2030s and 2040s that will build on Ontario’s clean electricity advantage and ensure the province has the power to maintain it’s position as leader in job creation and a magnet for the industries of the future, the Ministry said.

In February, World Nuclear News (WNN) reported that Poland was considering up to 79 small modular reactors of the same design as OPG and SaskPower. And on June 5, it reported, “Canada’s Ontario Power Generation will provide operator services to Poland’s Orlen Synthos Green Energy under a letter of intent signed between the partners, extending their existing cooperation on the deployment of small modular reactors.”

WNN added, “The letter of intent is aimed at concluding future agreements under which OPG and its subsidiaries could provide operator services for SMR reactors to OSGE in connection with the deployment of SMRs in Poland and other European countries. The partnership would include a number of SMR-related activities including: development and deployment; operations and maintenance; operator training; commissioning; and regulatory support.”

 

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Toronto Prepares for a Surge in Electricity Demand as City Continues to Grow

Toronto Electricity Demand Growth underscores IESO projections of rising peak load by 2050, driven by population growth, electrification, new housing density, and tech economy, requiring grid modernization, transmission upgrades, demand response, and local renewable energy.

 

Key Points

It refers to the projected near-doubling of Toronto's peak load by 2050, driven by electrification and urban growth.

✅ IESO projects peak demand nearly doubling by 2050

✅ Drivers: population, densification, EVs, heat pumps

✅ Solutions: efficiency, transmission, storage, demand response

 

Toronto faces a significant challenge in meeting the growing electricity needs of its expanding population and ambitious development plans. According to a new report from Ontario's Independent Electricity System Operator (IESO), Toronto's peak electricity demand is expected to nearly double by 2050. This highlights the need for proactive steps to secure adequate electricity supply amidst the city's ongoing economic and population growth.


Key Factors Driving Demand

Several factors are contributing to the projected increase in electricity demand:

Population Growth: Toronto is one of the fastest-growing cities in North America, and this trend is expected to continue. More residents mean more need for housing, businesses, and other electricity-consuming infrastructure.

  • New Homes and Density: The city's housing strategy calls for 285,000 new homes within the next decade, including significant densification in existing neighbourhoods. High-rise buildings in urban centers are generally more energy-intensive than low-rise residential developments.
  • Economic Development: Toronto's robust economy, a hub for tech and innovation, attracts new businesses, including energy-intensive AI data centers that fuel further demand for electricity.
  • Electrification: The push to reduce carbon emissions is driving the electrification of transportation and home heating, further increasing pressure on Toronto's electricity grid.


Planning for the Future

Ontario and the City of Toronto recognize the urgency to secure stable and reliable electricity supplies to support continued growth and prosperity without sacrificing affordability, drawing lessons from British Columbia's clean energy shift to inform local approaches. Officials are collaborating to develop a long-term plan that focuses on:

  • Energy Efficiency: Efforts aim to reduce wasteful electricity usage through upgrades to existing buildings, promoting energy-efficient appliances, and implementing smart grid technologies. These will play a crucial role in curbing overall demand.
  • New Infrastructure: Significant investments in building new electricity generation, transmission lines, and substations, as well as regional macrogrids to enhance reliability, will be necessary to meet the projected demands of Toronto's future.
  • Demand Management: Programs incentivizing energy conservation during peak hours will help to avoid strain on the grid and reduce the need to build expensive power plants only used at peak demand times.


Challenges Ahead

The path ahead isn't without its hurdles.  Building new power infrastructure in a dense urban environment like Toronto can be time-consuming, expensive, and sometimes disruptive, especially as grids face harsh weather risks that complicate construction and operations. Residents and businesses might worry about potential rate increases required to fund these necessary investments.


Opportunity for Innovation

The IESO and the city view the situation as an opportunity to embrace innovative solutions. Exploring renewable energy sources within and near the city, developing local energy storage systems, and promoting distributed energy generation such as rooftop solar, where power is created near the point of use, are all vital strategies for meeting needs in a sustainable way.

Toronto's electricity future depends heavily on proactive planning and investment in modernizing its power infrastructure.  The decisions made now will determine whether the city can support economic growth, address climate goals and a net-zero grid by 2050 ambition, and ensure that lights stay on for all Torontonians as the city continues to expand.
 

 

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COVID-19 crisis shows need to keep electricity options open, says Birol

Electricity Security and Firm Capacity underpin reliable supply, balancing variable renewables with grid flexibility via gas plants, nuclear power, hydropower, battery storage, and demand response, safeguarding telework, e-commerce, and critical healthcare operations.

 

Key Points

Ability to meet demand by combining firm generation and flexible resources, keeping grids stable as renewables grow.

✅ Balances variable renewables with dispatchable generation

✅ Rewards flexibility via capacity markets and ancillary services

✅ Enhances grid stability for critical loads during low demand

 

The huge disruption caused by the coronavirus crisis, and the low-carbon electricity lessons drawn from it, has highlighted how much modern societies rely on electricity and how firm capacity, such as that provided by nuclear power, is a crucial element in ensuring supply, International Energy Agency (IEA) Executive Director Fatih Birol said.

In a commentary posted on LinkedIn, Birol said: "The coronavirus crisis reminds us of electricity's indispensable role in our lives. It's also providing insights into how that role is set to expand and evolve in the years and decades ahead."

Reliable electricity supply is crucial for teleworking, e-commerce, operating ventilators and other medical equipment, among all its other uses, he said, adding that the hundreds of millions of people who live without any access to electricity are far more vulnerable to disease and other dangers.

"Although new forms of short-term flexibility such as battery storage are on the rise, and initiatives like UK home virtual power plants are emerging, most electricity systems rely on natural gas power plants - which can quickly ramp generation up or down at short notice - to provide flexibility, underlining the critical role of gas in clean energy transitions," Birol said.

"Today, most gas power plants lose money if they are used only from time to time to help the system adjust to shifts in demand. The lower levels of electricity demand during the current crisis are adding to these pressures. Hydropower, an often forgotten workhorse of electricity generation, remains an essential source of flexibility.

"Firm capacity, including nuclear power in countries that have chosen to retain it as an option, is a crucial element in ensuring a secure electricity supply even as soaring electricity and coal use complicate transitions. Policy makers need to design markets that reward different sources for their contributions to electricity security, which can enable them to establish viable business models."

In most economies that have taken strong confinement measures in response to the coronavirus - and for which the IEA has available data - electricity demand has declined by around 15%, largely as a result of factories and businesses halting operations, and in New York City load patterns were notably reshaped during lockdowns. If electricity demand falls quickly while weather conditions remain the same, the share of variable renewables like wind and solar can become higher than normal, and low-emissions sources are set to cover almost all near-term growth.

"With weaker electricity demand, power generation capacity is abundant. However, electricity system operators have to constantly balance demand and supply in real time. People typically think of power outages as happening when surging electricity demand overwhelms supply. But in fact, some of the most high-profile blackouts in recent times took place during periods of low demand," Birol said.

"When electricity from wind and solar is satisfying the majority of demand, and renewables poised to eclipse coal by 2025 are reshaping the mix, systems need to maintain flexibility in order to be able to ramp up other sources of generation quickly when the pattern of supply shifts, such as when the sun sets. A very high share of wind and solar in a given moment also makes the maintenance of grid stability more challenging."

 

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Report call for major changes to operation of Nova Scotia's power grid

Nova Scotia Energy Modernization Act proposes an independent system operator, focused energy regulation, coal phase-out by 2030, renewable integration, transmission upgrades, and competitive market access to boost consumer trust and grid reliability across the province.

 

Key Points

Legislation to create an independent system operator and energy regulator, enabling coal phase-out and renewable integration.

✅ Transfers grid control from Nova Scotia Power to an ISO

✅ Establishes a focused energy regulator for multi-sector oversight

✅ Accelerates coal retirement, renewables build-out, and grid upgrades

 

Nova Scotia is poised for a significant overhaul in how its electricity grid operates, with the electricity market headed for a reshuffle as the province vows changes, following a government announcement that will strip the current electric utility of its grid access control. This move is part of a broader initiative to help the province achieve its ambitious energy objectives, including the cessation of coal usage by 2030.

The announcement came from Tory Rushton, the Minister of Natural Resources, who highlighted the recommendations from the Clean Electricity Task Force's report to make the electricity system more accountable to Nova Scotians according to the authors. The report suggests the creation of two distinct entities: an autonomous system operator for energy system planning and an independent body for energy regulation.

Minister Rushton expressed the government's agreement with these recommendations, while the premier had earlier urged regulators to reject a 14% rate hike to protect customers, stating plans to introduce a new Energy Modernization Act in the next legislative session.

Under the proposed changes, Nova Scotia Power, a privately-owned entity, will retain its operational role but will relinquish control over the electricity grid. This responsibility will shift to an independent system operator, aiming to foster competitive practices essential for phasing out coal—currently a major source of the province’s electricity.

Additionally, the existing Utility and Review Board, which recently approved a 14% rate increase despite political opposition, will undergo rebranding to become the Nova Scotia Regulatory and Appeals Board, reflecting a broader mandate beyond energy. Its electricity-related duties will be transferred to the newly proposed Nova Scotia Energy Board, which will oversee various energy sectors including electricity, natural gas, and retail gasoline.

The task force, led by Alison Scott, a former deputy energy minister, and John MacIsaac, an ex-executive of Nalcor Energy, was established by the province in April 2023 to determine the needs of the electrical system in meeting Nova Scotia's environmental goals.

Minister Rushton praised the report for providing a clear direction towards achieving the province's 2030 environmental targets and beyond. He estimated that establishing the recommended bodies would take 18 months to two years, and noted the government cannot order the utility to cut rates under current law, promising job security for current employees of Nova Scotia Power and the Utility and Review Board throughout the transition.

The report advocates for the new system operator to improve consumer trust by distancing electricity system decisions from Nova Scotia Power's corporate interests. It also critiques the current breadth of the Utility and Review Board's mandate as overly extensive for addressing the energy transition's long-term requirements.

Nova Scotia Power's president, Peter Gregg, welcomed the recommendations, emphasizing their role in the province's shift towards renewable energy, as neighboring jurisdictions like P.E.I. explore community generation to build resilience, he highlighted the importance of a focused energy regulator and a dedicated system operator in advancing essential projects for reliable customer service.

The task force's 12 recommendations also include the requirement for Nova Scotia Power to submit an annual asset management plan for regulatory approval and to produce reports on vegetation and wood pole management. It suggests the government assess Ontario's hydro policies for potential adaptation in Nova Scotia and calls for upgrades to the transmission grid infrastructure, with projected costs detailed by Stantec.

Alison Scott remarked on the comparative expense of coal power against renewable sources like wind, suggesting that investments in the grid to support renewables would be economically beneficial in the long run.

 

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Recommendations from BC Hydro review to keep electricity affordable

BC Hydro Review Phase 2 Recommendations advance affordable electricity rates, clean energy adoption, electrification, and demand response, supporting heat pumps, EV charging, and low-income programs to cut emissions and meet CleanBC climate targets.

 

Key Points

Policies to keep rates affordable and accelerate clean electrification via heat pump, EV, and demand response incentives.

✅ Optional rates, heat pump and EV charging incentives

✅ Demand response via controllable devices lowers peak loads

✅ Expanded support for lower-income customers and affordability

 

The Province and BC Hydro have released recommendations from Phase 2 of the BC Hydro Review to keep rates affordable, including through a provincial rate freeze initiative that supported households, and encourage greater use of clean, renewable electricity to reduce emissions and achieve climate targets.

“Keeping life affordable for people is a key priority of our government,” said Bruce Ralston, Minister of Energy, Mines and Low Carbon Innovation. “Affordable electricity rates not only help British Columbians, they help ensure the price of electricity remains competitive with other forms of energy, supporting the transition away from fossil fuels to clean electricity in our homes and buildings, vehicles and businesses.”

While affordable rates have always been important to BC Hydro customers, amid proposals such as a modest rate increase under review, expectations are also changing as customers look to have more choice and control over their electricity use and opportunities to save money.

Guided by input from a panel of external energy industry experts, government and BC Hydro have developed recommendations under Phase 2 of the BC Hydro Review to reduce electricity costs for individuals and businesses, even as a 3.75% increase has been discussed, as envisioned by the CleanBC climate strategy. This is also in alignment with TogetherBC, the Province’s poverty reduction strategy, and its guiding principle of affordability.

“As we promote increased use of electricity in B.C. to achieve our climate targets, we need to continue to focus on keeping electricity rates affordable, especially for lower-income families,” said Nicholas Simons, Minister of Social Development and Poverty Reduction. “Through the BC Hydro Review, and continuing engagement with stakeholders and organizations to follow, we are committed to finding ways to keep rates affordable, so everyone has access to the benefits of B.C.’s clean, reliable electricity.”

Recommendations include having BC Hydro consider providing more support for lower-income BC Hydro customers, informed by a recent surplus report that highlighted funding opportunities. These include incentives and exploring optional rates for customers to adopt electric heat pumps, and facilitating customer adoption of controllable energy devices that provide BC Hydro the ability to offer incentives in return for helping to manage a customer’s electricity use. 

Electrification of B.C.’s economy helps customers reduce their carbon footprint and supports the Province’s CleanBC climate strategy, and is an important part of keeping electricity affordable even amid higher BC Hydro rates in recent periods. As more customers make the switch from fossil fuels to using clean electricity in their homes, vehicles and businesses, BC Hydro’s electricity sales will increase, providing more revenue that helps keep rates affordable for everyone.

“We’re making the transition to a cleaner future more affordable for people and businesses across British Columbia through our CleanBC plan,” said George Heyman, Minister of Environment and Climate Change Strategy. “By working with BC Hydro and other partners, we’re making sure everyone has access to clean, affordable electricity to power technologies like high-efficiency heat pumps and electric vehicles that will reduce harmful pollution and improve our homes, buildings and communities.”

Chris O’Riley, president and CEO, BC Hydro, said: “Given the impact of COVID-19 on British Columbians, affordability is more important than ever. That’s why we are committed to continuing to keep rates affordable and offering customers more options that allow them to save on their bills while using clean electricity.”

In July 2021, the Province announced a first set of recommendations from Phase 2 of the BC Hydro Review amid a 3% rate increase approved by regulators. The next announcement from Phase 2 will include recommendations to increase the number of electric vehicles on the road.

In addition, as part of the Draft Action Plan to advance the Declaration on the Rights of Indigenous Peoples Act, the Province is proposing to engage with Indigenous peoples to identify and support new clean energy opportunities related to CleanBC, the BC Hydro Review and the British Columbia Utilities Commission Indigenous Utilities Regulation Inquiry, and to consider lessons from Ontario's hydro policy experiences as appropriate.

B.C. is the cleanest electricity-generation jurisdiction in western North America, with an average of 98% of its electricity generation coming from clean or renewable resources.

 

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ACORE tells FERC that DOE Proposal to Subsidize Coal, Nuclear Power Plants is unsupported by Record

FERC Grid Resiliency Pricing Opposition underscores industry groups, RTOs, and ISOs rejecting DOE's NOPR, warning against out-of-market subsidies for coal and nuclear, favoring competitive markets, reliability, and true grid resilience.

 

Key Points

Coalition urging FERC to reject DOE's NOPR subsidies, protecting reliability and competitive power markets.

✅ Industry groups, RTOs, ISOs oppose DOE NOPR

✅ PJM reports sufficient reliability and resilience

✅ Reject out-of-market aid to coal, nuclear

 

A diverse group of a dozen energy industry associations representing oil, natural gas, wind, solar, efficiency, and other energy technologies today submitted reply comments to the Federal Energy Regulatory Commission (FERC) continuing their opposition to the Department of Energy's (DOE) proposed rulemaking on grid resiliency pricing and electricity pricing changes within competitive markets, in the next step in this FERC proceeding.

Action by FERC, as lawmakers urge movement on aggregated DERs to modernize markets, is expected by December 11.

In these comments, this broad group of energy industry associations notes that most of the comments submitted initially by an unprecedented volume of filers, including grid operators whose markets would be impacted by the proposed rule, urged FERC not to adopt DOE'sproposed rule to provide out-of-market financial support to uneconomic coal and nuclear power plants in the wholesale electricity markets overseen by FERC.

Just a small set of interests - those that would benefit financially from discriminatory pricing that favors coal and nuclear plants - argued in favor of the rule put forward by DOE in its Notice of Proposed Rulemaking, or NOPR, as did coal and business interests in related regulatory debates. But even those interests - termed 'NOPR Beneficiaries' by the energy associations - failed to provide adequate justification for FERC to approve the rule, and their specific alternative proposals for implementing the bailout of these plants were just as flawed as the DOE plan, according to the energy industry associations.

'The joint comments filed today with partners across the energy spectrum reflect the overwhelming majority view that this proposed rulemaking by FERC is unprecedented and unwarranted, said Todd Foley, Senior Vice President, Policy & Government Affairs, American Council on Renewable Energy.

We're hopeful that FERC will rule against an anti-competitive distortion of the electricity marketplace and avoid new unnecessary initiatives that increase power prices for American consumers and businesses.'

In the new reply comments submitted in response to the initial comments filed by hundreds of stakeholders on or before October 23 - the energy industry associations made the following points: Despite hundreds of comments filed, no new information was brought forth to validate the assertion - by DOE or the NOPR Beneficiaries - that an emergency exists that requires accelerated action to prop up certain power plants that are failing in competitive electricity markets: 'The record in this proceeding, including the initial comments, does not support the discriminatory payments proposed' by DOE, state the industry groups.

Nearly all of the initial comments filed in the matter take issue with the DOE NOPR and its claim of imminent threats to the reliability and resilience of the electric power system, despite reports of coal and nuclear disruptions cited by some advocates: 'Of the hundreds of comments filed in response to the DOE NOPR, only a handful purported to provide substantive evidence in support of the proposal. In contrast, an overwhelming majority of initial comments agree that the DOE NOPR fails to substantiate its assertions of an immediate reliability or resiliency need related to the retirement of merchant coal-fired and nuclear generation.'

Grid operators filed comments refuting claims that the potential retirement of coal and nuclear plants which could not compete for economically present immediate or near-term challenges to grid management, even as a coal CEO criticism targeted federal decisions: 'Even the RTOs and ISOs themselves filed comments opposing the DOE NOPR, noting that the proposed cost-of-service payments to preferred generation would disrupt the competitive markets and are neither warranted nor justified.... Most notably, this includes PJM Interconnection, ... the RTO in which most of the units potentially eligible for payments under the DOE NOPR are located. PJM states that its region 'unquestionably is reliable, and its competitive markets have for years secured commitments from capacity resources that well exceed the target reserve margin established to meet [North American Electric Reliability Corp.] requirements.' And PJM analysis has confirmed that the region's generation portfolio is not only reliable, but also resilient.'

The need for NOPR Beneficiaries to offer alternative proposals reflects the weakness of DOE'srule as drafted, but their options for propping up uneconomic power plants are no better, practically or legally: 'Plans put forward by supporters of the power plant bailout 'acknowledge, at least implicitly, that the preferential payment structure proposed in the DOE NOPR is unclear, unworkable, or both. However, the alternatives offered by the NOPR Beneficiaries, are equally flawed both substantively and procedurally, extending well beyond the scope of the DOE NOPR.'

Citing one example, the energy groups note that the detailed plan put forward by utility FirstEnergy Service Co. would provide preferential payments far more costly than those now provided to individual power plants needed for immediate reasons (and given a 'reliability must run' contract, or RMR): 'Compensation provided under [FirstEnergy's proposal] would be significantly expanded beyond RMR precedent, going so far as to include bailing [a qualifying] unit out of debt based on an unsupported assertion that revenues are needed to ensure long-term operation.'

Calling the action FERC would be required to take in adopting the DOE proposal 'unprecedented,' the energy industry associations reiterate their opposition: 'While the undersigned support the goals of a reliable and resilient grid, adoption of ill-considered discriminatory payments contemplated in the DOE NOPR is not supportable - or even appropriate - from a legal or policy perspective.

 

About ACORE

The American Council on Renewable Energy (ACORE) is a national non-profit organization leading the transition to a renewable energy economy. With hundreds of member companies from across the spectrum of renewable energy technologies, consumers and investors, ACORE is uniquely positioned to promote the policies and financial structures essential to growth in the renewable energy sector. Our annual forums in Washington, D.C., New York and San Franciscoset the industry standard in providing important venues for key leaders to meet, discuss recent developments, and hear the latest from senior government officials and seasoned experts.

 

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