Be Wary of Power Generators Touting States’ Rights

In the weeks since FERC issued its December 2019 order related to unfair subsidies for some power generators, numerous organizations have shared their reactions and filed appeals.

Todd Snitchler, a former PUCO chair and the current president of the Electric Power Supply Association (EPSA), authored this column, predicting that subsidy supporters and their allies will employ spin and accuse the federal government of overreach — saying the FERC is denying states of their due discretion to determine their own fuel mix. The fact is, states willingly surrendered that element of a planned economy in favor of a competitive market.

Snitchler wrote: “Since restructuring, states have relied on, and benefited from, regional power markets — utilizing excess supply in other areas when their own supply may be insufficient — to ensure reliability at the lowest possible cost. Now looking to double-dip into taxpayer pockets and the market, certain generators have tried to convince politicians to layer one-off policies onto a regional/wholesale framework.” 2/13/2020