Energy Tomorrow Blog
Posted October 31, 2017
Posted October 17, 2017
It’s unclear what the Federal Energy Regulatory Commission (FERC) will do with U.S. Energy Secretary Rick Perry’s request that FERC alter the electricity marketplace in favor of certain generating facilities – a proposal that by design would favor some energy sources over others.
Perry says his request to FERC was meant to be a conversation starter. But if it’s a conversation about government tilting the electricity market one way or another, it’s the wrong one.
Indeed, as the secretary tried to explain his FERC order to lawmakers at a House hearing last week he missed the mark when he questioned the reliability of natural gas, the leading fuel for U.S. electricity generation in 2016, and asserted that the natural gas and oil industry receives federal subsidies – it doesn’t.
Posted October 11, 2017
There’s a remarkable reality – among the many benefits of abundant, cleaner-burning domestic natural gas – that mustn’t be lost in the political back-and-forth over this week’s EPA decision to repeal the Clean Power Plan (CPP): The U.S. is achieving CPP’s objectives for reducing power sector carbon emissions – without CPP’s implementation.
It’s true: Reductions of U.S. CO2 emissions from electricity generation are well on their way to surpassing EPA’s estimate that CPP would lower CO2 emissions 32 percent below 2005 levels by 2030. And it’s being done without CPP, thanks largely to market forces driving the increased use of natural gas in power generation.
Posted October 5, 2017
Ohio voters continue to oppose bailouts for nuclear plants. As a statewide poll showed this summer, a new poll by API Ohio shows big opposition to a proposal to let nuclear plant owner FirstEnergy charge its customers a special fee to increase funding for its plants in three counties that are near FirstEnergy’s headquarters and its Davis-Besse and Perry nuclear plants. The opposition in Lake, Summit and Ottawa counties is bipartisan and huge.
Posted October 4, 2017
Some initial takeaways from this week’s House hearing, during which there was considerable discussion of the U.S. Energy Department’s recent request that a new electricity pricing program be developed by the Federal Energy Regulatory Commission – one that effectively would favor some energy sources over others.First, as we argued twice last week (read here and here), markets – not preferences, mechanisms, subsidies or whatever – should be allowed to select energy sources for power generation, because they reward innovation, promote efficiency, lower prices and work to benefit consumers.
Posted October 3, 2017
Posted September 29, 2017
Earlier this week we wrote about the market perils of government efforts to favor some energy sources over others (“On Energy, Let Markets Choose”). We may as well have been talking about Friday’s U.S. Energy Department request that the Federal Energy Regulatory Commission (FERC) develop a new electricity pricing program that lets some power plants recover the costs of providing that power.Whatever you call these preferential measures – subsidies, mechanisms, credits – they tend to foil the way markets, if left to themselves, reward innovation, promote efficiency, lower prices and work to benefit consumers.
Posted September 27, 2017
Posted September 26, 2017
We support all-of-the-above energy – the concept that America is strongest and its citizens are best served when all of our country’s energy sources play their part. We’re also for the important role markets play in determining energy sources, because markets reward innovation, spur efficiency, lower prices and work to benefit consumers. That said, a new study that basically argues market-distorting subsidies enjoyed by some energies should be followed by market-distorting subsidies for others makes little sense.
Posted September 22, 2017
U.S. businesses and industries continue to press the case for preserving and strengthening NAFTA provisions that have supported U.S. trade with Canada and Mexico. A number of business and industry sectors joined an API-hosted conference call with reporters to underscore the need for ongoing negotiations between the U.S., Canada and Mexico to sustain treaty features that foster North American trade, including North American energy integration.