Translated title: The debate on the Grid Resiliency Pricing Rule - Electricity market policy under President Trump
The lively debate about the Grid Resiliency Pricing Rule proposed by US Secretary of Energy Rick Perry in September 2017 provides valuable insights about the state of US power market policies and politics one year after President Trump’s inauguration.
With Perry’s proposal, the Trump administration intended to introduce a multi-billion support program for power plants that can store 90 days of fuel on-site. In practice, the beneficiaries would have been only coal and nuclear plant operators. The Trump administration argued that the Grid Resiliency Pricing Rule was necessary to strengthen the resiliency of US power systems.
In January 2018, the Federal Energy Regulatory Commission (FERC) rejected the proposal. Of the five FERC Commissioners making the decision, four had been nominated by President Trump.
This study (available in German language only) analyses the main steps of the process, beginning with the energy policy focus points of Trump’s campaign and following with an examination of the Department of Energy’s preliminary study, the reactions of stakeholders and finally FERC’s decision.
The second part of the study looks at three key aspects of the debate in greater depth: the resiliency of US power systems, the broader implications for the power market regulatory regime, and the independence of FERC under President Trump.
Further publications in the series
- Overview of energy policy and energy economy in California (in German only) (September 2017)
- Overview of the energy policy of Canada (in German only) (June 2017)
- Overview of Australia's energy policy (in German only) (March 2017)
- Power Cuts in South Australia 2016 and 2017 (in German only) (February 2017)
- California and Germany: energy policy cooperation with neighbouring states in the electricity sector (in German only) (December 2016)
- Overview of the energy efficiency policy in the US (in German only) (December 2016)
- Overview of the US electricity markets (in German only) (November 2016)