FERC deals blow to New York renewable, storage projects, adding hurdles to NYISO capacity market
FERC Chairman Neil Chatterjee insisted that the orders are distinct from other FERC decisions regarding the impact of state subsidies in regional transmission operator markets.
“Today’s orders protect the competitiveness of New York ISO’s capacity market by addressing the price-distorting actions that could have unintended impacts on the future supply of electricity consumers,” Chatterjee said during the meeting.
But critics have likened BSM to the Minimum Offer Price Rule (MOPR) in PJM.
“The one similar theme: All of them go after clean energy policies. They’re trying to raise prices and go after clean energy policies and the way they do it is different,” Commissioner Richard Glick told Utility Dive. Glick was the only one of the three active commissioners to dissent from each of the four orders.
Senate Minority Leader Chuck Schumer, D-N.Y., had written FERC on Wednesday, asking commissioners not to approve BSM market rules that would undermine the state’s climate and clean energy goals.
“FERC has become a wholly-owned GOP subsidiary, doing the bidding of the biggest polluters,” he said in a tweet on Thursday after the orders were issued.
“The wholesale markets must now accommodate state policies; not conflict with them,” Rich Dewey, President and CEO of NYISO, said in a statement, adding that the grid operator will consider “appropriate next steps.”
“Our challenge now is to foster the State’s public policies through the competitive electricity markets,” Dewey said.
Last summer, New York passed an ambitious decarbonization and renewable energy investment program, requiring 100% clean energy from the utility sector by 2040. State regulators, state energy groups and the grid operator are also looking at ways to implement the statute along with ambitious offshore wind and energy storage goals.
“We remain committed to harmonizing the FERC’s jurisdictional obligations while respecting New York State’s right to determine the appropriate resource mix within its jurisdiction,” he added.
Local environmental groups like the Alliance for Clean Energy NY have already announced plans to appeal the decision. Under the Federal Power Act, stakeholders must file a request for rehearing and cannot litigate FERC decisions until regulators respond to that request.