DOE’s Compensation Scheme For Coal And Nuclear Is Dead – Now What? « Breaking Energy - Energy industry news, analysis, and commentary

DOE’s Compensation Scheme For Coal And Nuclear Is Dead – Now What? « Breaking Energy - Energy industry news, analysis, and commentary: In a January 8 Order, the Federal Energy Regulatory Commission (FERC or Commission) swiftly dismissed the Department of Energy’s (DOE) proposed out-of-market compensation scheme for coal and nuclear units.  DOE’s proposal would have provided guaranteed profits to coal and nuclear plants, despite the fact that these aging units are losing out to more efficient and affordable resources.  Instead, FERC took a more measured approach, asking all regional market operators to submit additional information on resiliency issues within 60 days, and providing interested parties an opportunity to respond to those submittals within 30 days.  Here’s what we can expect next. A robust process The Commission has reasserted its independence and refused to be influenced by Secretary of Energy Rick Perry’s poorly-reasoned proposal, and DOE’s demand that FERC act swiftly without an adequate record.  FERC’s order makes clear that while it may take future action on resilience, it will only do so after a complete record and vetting of the issues.  FERC’s order provides a list of issues for Regional Transmission Organizations/Independent System Operators (RTOs/ISOs) to consider in order to develop a commo