As older coal and nuclear generators are pushed off the grid by cheaper, nimbler, cleaner renewables and other technologies, the owners of conventional generators are becoming increasingly nervous about their futures, and seeking new ways to protect their legacy assets. From attempting to change market rules or simply pursuing new subsidies, the effort to retire dirty and unwanted old generators and replace them with newer, cleaner sources of electricity faces a series of challenges. And how those challenges are resolved will have broad implications for how the electric grid of the future will operate, and who will own it.
In this episode we take a deep dive into the intersections between federal authority, wholesale markets, and state policies, explore some of the legal questions therein, and try to understand what they suggest about the process of energy transition, and the pathways for unlocking new ways of using energy and designing electricity markets…and yes, this episode definitely deserves its Geek Rating!
What are the legal issues around new proposed subsidies for nuclear and coal plants? What are the new ways in which the authority of the Federal Energy Regulatory Commission (FERC) has to be distinguished from the authority of the states? Are states with economically challenged power generators sliding toward unintentional re-regulation, or will FERC and the courts step in to protect structured markets? And why is PURPA, the federal law that has undergirded renewable procurement since 1978, under fresh attack? In this episode, we explore these deep, dark, yet important and very contemporary legal questions with a Senior Fellow in Electricity Law at the Harvard Law School Environmental Policy Initiative. In addition to our deep dive on PURPA and around-market reforms, we’ll also discuss some of the likely implications of Trump’s new direction in energy policy, implications for the Clean Power Plan, and how the federal government’s leadership role on climate might be changing.