Some worry that climate change rules threaten reliability of electrical gridApr 6 - Jacob Barker St. Louis Post-Dispatch
Utility executives see new environmental rules to address climate change as a potential threat to the electric grid's reliability. Others say those fears are overblown. Still, most agree there's room for compromise, though not a lot of time. The Federal Energy Regulatory Commission heard those concerns and assurances at a conference last week in St. Louis. The agency wanted to hear what utilities, grid operators and regulators in the central U.S. think of the Environmental Protection Agency's plan for steep cuts in carbon emissions. The top issue for many who attended is how to meet the EPA's interim targets for 2020 -- especially since the EPA hasn't yet finalized those rules. Warner Baxter, CEO of St. Louis-based Ameren Corp., urged FERC "to take immediate action" and ask EPA to scrap its interim goals and let the states write their own. States will already be required to write a plan to cut carbon emissions by 30 percent on average by 2030. "The first order of business, if I were to rank them, are clearly the interim targets," Baxter told FERC commissioners. The 2020 cuts have been Ameren's primary critique of the rules since they were first proposed in June. The utility isn't alone, with many saying it's too much too fast. Some industry and political leaders had urged FERC to get involved, warning the rule would spur utilities to retire too many coal-fueled power plants before renewable and natural gas plants can offset the difference. The EPA is supposed to finalize the rules this summer, and Janet McCabe, a top EPA air official at the meeting, recognized the concerns with the interim targets. But she maintained that reliability won't be affected, saying compliance with air pollution standards has never "caused the lights to go out in this country." Baxter and others, however, want FERC to advocate for an EPA rule change that would let power plants fire up in case of a grid emergency, even if it would push their states past their emission threshold. Lauren Azar, an attorney and former Wisconsin utility regulator, said there are already similar mechanisms in existing law. Time discussing the emergency mechanism would be better spent getting to work on the compliance plans, she said. "The federal government is not going to jeopardize the reliability of the electric system," Azar said. "Period." Outgoing FERC Chair Cheryl LaFleur, speaking to reporters after the meeting, also played down reliability concerns. "I think consumers should have confidence that the people who work on the grid" will keep it running, she said. Jacob Barker -- 314-340-8291 @jacobbarker on Twitter http://www.energycentral.com/functional/news/news_detail.cfm?did=35732282 |