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Showing posts from October, 2017

Energy Markets Are Blind to Critical Factors in the Electric Grid

Using the short-term energy markets to make long-term decisions about the electric grid will irreversibly damage the system’s diversity and resiliency, the nuclear industry told the Federal Energy Regulatory Commission on Monday, as the Commission prepared to take up a request by the Secretary of Energy to reform the rules for regional electricity pricing.

The markets are well set up to minimize short-term electricity costs, but they are blind to “critical non-price factors, such as resiliency, fuel diversity and environmental performance,” the Nuclear Energy Institute (NEI), the industry’s trade association, said in comments filed Monday with the Commission, known as FERC.


FERC sets the ground rules for the competitive energy markets that are now in place over more than half the country. But those rules have turned crucial decisions over to a very narrow set of considerations, as if the system operated in a “price-only vacuum,” NEI said in its comments.

The markets set prices that re…