Generators Blast RTO Cost Accountability Bill
Yesterday, (3/31/08), the Electric Power Supply Association (EPSA) and the New England Power Generators Association (NEPGA) released a letter they sent to Sen. Bernie Sanders (I-VT), stating that they have "serious concerns" about S. 2660/H.R. 5547, the "Consumer Protection and Cost Accountability Act." Although the generator groups stopped short of opposing the bills, EPSA and NEPGA told Sanders that the bill would have "serious unintended consequences," including "chilling necessary investments in the nation's power supply system" and discouraging development of renewable resources.
The bills, introduced last month by Sens. Bernie Sanders (I-VT) and Olympia Snowe (R-ME) in the Senate and Rep. Tom Allen (D-ME) in the House, call on FERC to assure that the independent system operators, such as ISO New England, provide reliable electric service at the "lowest reasonable cost" to consumers.
"The bill appears to be based on the false premise that RTOs and ISOs are causing price increases for consumers," the letter states. This is not, in fact, the case. The largest driver behind electricity prices is the cost of fuel, not the market structure."
The EPSA/NEPGA letter also claims that the bills will complicate and conflict with efforts to implement regional and national programs to address global warming.
NEPPA is preparing a response to the EPSA/NEPGA letter.
Public Power Meets with Senate Finance Staff to Discuss CREB Extension
On March 25, Morgan Meguire's Lori Pickford, representatives from the American Public Power Association (APPA) and other public power entities met with Senate Finance Committee staff to discuss the need to extend and modify the existing Clean Renewable Energy Bond (CREB) program. Staff clearly understood our position on the changes needed to the CREB rules, and seemed supportive of the negotiated tax package (with these changes) that failed in the Senate by one vote in December.
It became clear in the meeting that, while there is broad bi-partisan support for advancing a comprehensive energy tax package there is no clear path to get that package out of the Senate, much less to the President for his signature, at this time. Staff said opposition by the White House and Republican Leadership to the oil and gas provisions included in the bill to "pay for" the package was strong, making it difficult to secure the 60 votes needed to pass a comprehensive tax bill.
Ultimately, staff said, the expiring energy incentive provisions may be part of a larger "extender" package that is passed at the end of the session. In fact, Sens. Maria Cantwell (D-WA) and John Ensign (R-NV) are expected to introduce a one-year energy extender bill later this week. The risk in this approach is that the technical changes public power is seeking in the CREB program may not be included. If the Senate moves in this direction, Committee staff agreed to work with us to include the CREB language that was included in the negotiated package approved in December.
Morgan Meguire is working on behalf of NEPPA with a broad coalition of businesses, environmental organizations, utilities, and associations working to get a bill with long-term renewable and energy-efficiency tax credits passed in the Senate this April. NEPPA has agreed to sign onto a stakeholder letter, expected to be sent to all Senators tomorrow, explicitly supporting a long-term extension of the CREBS program, the solar investment tax credit (ITC), wind production credit, biomass and geothermal credits, energy efficiency tax credits, renewable fuels credits, and PHEV credits. This group is also targeting legislators from key states to garner additional support. Morgan Meguire will send NEPPA the final letter once it is distributed.
In addition, APPA and the Large Public Power Council (LPPC) are working on their own Senate letter highlighting the need for the technical reforms to the CREBs program.
EPA to Issue Greenhouse Gas Rule this Spring
On March 27, the Bush Administration announced it would open a public comment period later this spring on possible greenhouse gas (GHG) regulations. The surprise announcement by the Administration is a result of last April's Supreme Court decision, which ordered EPA to reconsider its decision that carbon dioxide emissions from cars and other motor vehicles was not a pollutant and could not be regulated under the Clean Air Act.
Environmental Protection Agency (EPA) Administrator Stephen Johnson sent a letter to key lawmakers, stating his plans to issue a Notice of Proposed Rulemaking outlining the federal government's proposals to mitigate climate change. He said that EPA is considering several policy options for dealing with different economic sectors, including automobiles, power plants, airplanes, etc.
EPA has not stated any additional plans beyond the public comment period. Most people following this issue expect that there is not sufficient time remaining for the current Administration to complete the rulemaking and that, instead, a comprehensive climate change program will be dealt with by the next president.
LIHEAP Appropriations "Dear Colleague" Letter Circulated
Sens. Jack Reed (D-RI) and Susan Collins (R-ME) are circulating a "Dear Colleague" letter requesting support on a letter to Subcommittee Chairman Tom Harkin (D-IA) and Ranking Member Arlen Specter (R-PA), to request the inclusion of $5.1 billion in funding for the Low Income Home Energy Assistance Program (LIHEAP) in the FY 09 Labor Health and Human Services Appropriations bill.
Currently, the following Senators have signed: Baucus (D-MT), Biden (D-DE), Brown (D-OH), Clinton (D-NY), Dodd (D-CT), Durbin (D-IL), Kennedy (D-MA), Kerry (D-MA), Kohl (D-WI), Lautenberg (D-NJ), Lieberman (I-CT), Rockefeller (D-WV), Sanders (I-VT), Snowe (R-ME), Stabenow (D-MI), Sununu (R-NH), Whitehouse (D-RI), Wyden (D-OR). The letter will be circulated until April 4.