→ Proposed rule to adjust rates for wholesale electricity sales

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The Secretary of Energy has issued a notice on its directive to the Federal Energy Regulatory Commission to impose a rule to adjust rates for electricity sales in order to 'improve the operation of organized wholesale electric power markets.' The proposed rule requires Commission-organized markets to develop and implement market rules that 'accurately price generation resources necessary to maintain the reliability and resiliency of our Nation's bulk power system.' This notice states that 'fuel-secure generation units' like 'reliable nuclear and coal-[fired] plants' contribute to the reliability and resilience of the electric grid due to on-site fuel supply. However, 'the mix of resources' contributing to the US electric grid is 'evolving in response to changing market conditions, including low natural gas prices [and] state and federal policies encouraging the entry of renewable resources.' There is concern that 'premature retirement' of 'fuel-secure generation units' will make the electric grid less reliable, particularly after natural disasters and during the 'winter heating season.' The notice states that the proposed tariffs do not require an environmental analysis (under the National Environmental Policy Act) or a consideration of alternatives that are less burdensome to small entities (under the Regulatory Flexibility Act), and so the Commission will take final action on the proposed rule within 60 days of the publication of this notice.