Statement From EPSA President and CEO Todd Snitchler on FERC’s NYISO Capacity Market Ruling
Washington, D.C. – The Federal Energy Regulatory Commission (FERC)’s actions today highlight growing strain on the market that ensures low prices, reliable service, and innovation for New York electricity customers—the capacity market governed by the New York Independent System Operator (NYISO). Todd Snitchler, president and CEO of the Electric Power Supply Association (EPSA), issued the following statement in response, emphasizing the ongoing need to appropriately price environmental goals while maintaining reliability at the lowest cost to consumers:
“For consumers to get the best possible deal, competition must be allowed to drive power generation investment decisions, emissions reductions, and renewable integration. There is no better alternative. Any other approach ultimately asks New Yorkers to foot the bill for power generation projects regardless of whether they are delivered on time or on budget, and for propping up outdated, costly plants—when that burden should stay with private operators and investors. Kneecapping or abandoning market competition will also stall the very innovation needed to achieve sustainable environmental benefits.
FERC’s actions today highlight the growing strain on the New York Independent System Operator (NYISO)’s capacity market caused by out-of-market subsidies that give an unfair advantage to certain power providers, following a discussion that dates back to 2013.
EPSA has yet to review the Orders to determine their full impact and whether FERC appropriately addresses damaging subsidies in NYISO. The bottom line is that we need to have a conversation about the right way to pursue environmental and other energy policy goals through competitive markets.
A 20-year track record shows that competitive electricity markets work. Since NYISO’s inception, New York has seen a 23% decrease in costs while CO2 emissions have dropped by 51%.
As policymakers in New York and other states pursue policies to reduce emissions and advance clean energy goals, we support the use of market-based mechanisms—such as an economy-wide price on carbon or other approaches that treat any ton of emissions avoided or displaced the same and allow all power providers to compete to lower emissions without vastly raising energy costs for homes and businesses.
It’s high time for action on market-based approaches that many agree are the best and most realistic way to achieve environmental goals.
Any policy choices or out-of-market actions that damage competition put New York back on a path to the old days of monopoly utility control over power generation—an unacceptable outcome consumers do not deserve. Instead, New Yorkers deserve the efficiency, low costs, and innovation competitive power suppliers have demonstrated they are willing and able to provide. We’re not going back—EPSA and our members welcome a serious conversation about how to move forward without sacrificing the benefits of competition.”
The Electric Power Supply Association (EPSA) is the national trade association representing America’s competitive power suppliers. EPSA members provide nearly 150,000 MW of reliable and competitively priced electricity from environmentally responsible facilities using a diverse mix of fuels and technologies including natural gas, wind, solar, hydropower, geothermal, storage, biomass, and coal. EPSA seeks to bring the benefits of competition—lower costs, reliability, efficiency, and innovation—to all power customers.