January 8, 2018
ICYMI: Even During Bomb Cyclone, Don’t Over-Regulate Electricity
The Federal Energy Regulatory Commission will decide on Wednesday whether to implement a Department of Energy (DOE) proposal to support certain energy sources that are ostensibly more reliable during extreme weather — like the recent bomb cyclone. AAF’s Director of Energy Policy Philip Rossetti argues that the policy under consideration could drive up energy prices long-term while failing to address short-term reliability concerns.
The DOE’s proposal highlights how government intrusion into electricity markets creates myriad problems. Through subsidies, mandates, and other policies, governments have intervened significantly in how electricity is managed. Adopting the new regulation would simply introduce more distortion into the energy market. … And the long-term effect of the proposal is simple: a wealth transfer from electricity ratepayers (you) to protect otherwise uncompetitive power plants.
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