On February 27, the PA Chamber of Business and Industry President and CEO Gene Barr issued the following statement regarding changes to the electricity market auction rules being proposed by the regional grid operator, PJM Interconnection.

The proposal, addressing reserve pricing and procurement in regional energy markets, will soon be sent to the Federal Energy Regulatory Commission for formal consideration.

“Over the past two years, electric generation companies that own and operate nuclear power plants in Pennsylvania have put the spotlight on the challenges facing these facilities.

“These challenges are not unique to Pennsylvania – other states in the 13-state PJM territory have experienced them as well, and have enacted legislation and policies to prevent the premature closure of nuclear facilities.

“It is clear that this is a regional issue, not just a Pennsylvania problem, and therefore we are concerned with any legislative remedy that puts the burden solely on Pennsylvania families and businesses. Given that Pennsylvania is a net exporter of power, a regional solution is necessary.

“Therefore, the PA Chamber is endorsing PJM Interconnection’s proposed changes to its energy market pricing rules and urges FERC to approve the changes as soon as possible.

“These rules would compensate power generation facilities for costs and attributes previously unrecognized in pricing rules – a concern raised by plant operators at hearings convened by the General Assembly’s joint legislative Nuclear Caucus – without unduly burdening Pennsylvanians.

“Among the other issues facing the nuclear industry identified by the Nuclear Caucus was an unlevel playing field, including preferential tax and energy policy favoring particular resources.

“Of note, Pennsylvania’s 2004 Alternative Energy Portfolio Standards Act directs 18 percent of the market to particular resources at the cost of tens of millions of dollars per year by ratepayers. Our organization opposed this legislation from the outset out of concern it would distort the market – as it very clearly has.

“We have and will continue to embrace and champion competitive markets. In the two decades since Pennsylvania passed the Electric Generation Customer Choice and Competition Act, ratepayers have benefitted from the resulting billions of dollars in lower utility costs and a cleaner environment.

“It is vital, however, that as competition unfolds in electricity markets, power generation facilities are appropriately compensated. We believe PJM’s proposed pricing rules will achieve that, and as such, we endorse this proposal and urge it be approved quickly.”

NewsClips:

PA Lawmakers Continue To Struggle With Nuclear Power Issue

AP: PA Should Try To Save Nuclear Plants Senate Republican Leader Says

Cusick: Read A Draft Of Pennsylvania’s Nuclear Bailout Bill

Potential Bailout Of Nuclear Industry Causing Stir

PA’s Draft Zero Emission Credit (Nuclear Power) Bill Reveal - Kleinman Center For Energy Policy

Analysis: Should Nuclear Power Plants Get A Bailout In The Name Of Climate Change?

Mykuth: Peach Bottom, Other Nuclear Plants, Could Run Until 2054, Is It Safe?

Letter: Three Mile Island Nuclear Plant Shutdown Is Overdue

Letter: Nuclear Energy Unaffordable, Extremely Dangerous

Letter: Company Bailouts Unfair To Taxpayers - PA Manufacturers

Op-Ed: Time’s Up For Three Mile Island

Op-Ed: Pennsylvania Could Face A Brain Drain Without Nuclear Power

Op-Ed: Nuclear Power Plants Critical To PA’s Energy Future

Op-Ed: Opponents Ignore The Many Benefits Of Nuclear Power In PA

Editorial: Legislature Shouldn’t Prop Up Three Mile Island

WITF Smart Talk: Three Mile Island Accident 40th Anniversary

[Posted: March 1, 2019]

3/4/2019