What FERC’s Order on State-Subsidized Power Means for Manufacturers

More than a month after the Federal Energy Regulatory Commission (FERC) issued its landmark order to protect competitive wholesale electricity markets from subsidized power, stakeholders are gaining clarity into the outcome.

The order, which modifies and expands the Minimum Offer Price Rule (MOPR), was originally designed to prevent state subsidization of new natural gas generators. Under FERC’s recent order, the expanded MOPR also applies to nuclear, coal, and renewable power plants that receive state subsidies. FERC did this to level the playing field.

The FERC order tips House Bill 6 on its head, according to new OMA analysis. In 2019, Ohio lawmakers rushed HB 6 through the legislative process, forcing Ohioans to subsidize two nuclear power plants, as well as select coal and renewable power facilities. OMA Energy Technical Consultant John Seryak of RunnerStone LLC warned of such market consequences last summer.

Members are invited to register for the OMA Energy Committee’s March 12 meeting for further analysis of this developing situation. 1/30/2020