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Power Market Upheavals Prompt States, Feds to Take Action
Power Market Upheavals Prompt States, Feds to Take Action
Mar 8, 2017
by Margarita Fournier; Copyright 2016 by Competitive Assets, LLC. All rights reserved
On 3/8/17, UtilityDIVE reported on the “strange things” that are happening in the power markets. One can see it “in New York, where existing, carbon-free nuclear generation needs help from the state to keep running. In Ohio, where generators are selling coal plants after failing to win financial support. And in Texas, the nation’s largest organized market, where even combined-cycle gas plants have come under pressure.” The article mentions NRG CEO’s comment about calling “the independent power producer model ‘obsolete and unable to create value over the long term.’ His company owns a dozen coal, gas and nuclear plants in Texas, and generation revenues for that region dropped more than $90 million last year, primarily because of lower power prices in the state.” Also mentioned are two white papers, looking at what states have been doing to preserve baseload resources, as well as the tension that exists between markets and public policies like renewable energy incentives and nuclear power subsidies.” The article then discusses the “troubled markets” in California, Texas, and PJM
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