Leading Senate Republicans are pressing the Federal Energy Regulatory Commission (FERC) to evaluate the potential consequences of President Biden's stringent regulations on fossil fuel power plants on the nation's electric grid reliability. Senators John Barrasso (R-WY), Ranking Member of the Energy and Natural Resources Committee, and Shelley Moore Capito (R-WV), Ranking Member of the Environment and Public Works Committee, voiced their concerns in a letter to FERC commissioners. They argue that the new regulations could worsen existing grid reliability challenges.
The senators emphasized the need for FERC to convene stakeholders and gather data on the potential impact of what they term "Clean Power Plan 2.0." They assert that the Environmental Protection Agency (EPA) lacks the necessary expertise to accurately predict the effects on electric reliability without FERC's involvement and input from entities responsible for electricity generation and delivery.
Specifically, Barrasso and Capito requested FERC to hold technical conferences to examine the administration's power plant regulations and their assumptions about the future availability of certain technologies. They pointed to concerns raised by industry experts and FERC Commissioner James Danly, who warned of a potential "catastrophic reliability event" due to market distortions caused by subsidies for renewable energy sources.
The EPA's regulations, announced in May, aim to reduce carbon emissions from fossil fuel-fired power plants. The plan mandates the use of carbon capture technology or plant shutdowns. However, critics argue that this could lead to premature retirements of dependable power generation sources, potentially causing power shortages. Fossil fuels currently account for over 60% of U.S. electricity generation, while renewables contribute only 14%.
The senators highlighted testimony from FERC Chairman Willie Phillips, who expressed concern about the rate of generator retirements, and cited comments from leaders at the North American Electric Reliability Corporation, the Regional Transmission Organization PJM, and Associated Electric Cooperative, all of whom have warned of an impending reliability crisis.
