U.S. Electricity Regulator Takes a Hard Look at Carbon Pricing

U.S. Electricity Regulator Takes a Hard Look at Carbon Pricing

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Pollution emits from a power plant
October 13, 2020

In September the U.S. electricity regulator, the FERC, held its first conference to explore carbon pricing in the nation’s electricity markets. Is a carbon price finally on the way?

In late September the regulator of America’s electricity markets, the Federal Energy Regulatory Commission, took the unusual step of convening a conference at which it, and members of the electricity industry, considered putting a price on carbon dioxide emissions. The meeting came as wholesale electricity markets, which supply power for two-thirds of Americans, have entered into a period of turmoil that, at the extreme, threatens to break those very markets apart, and which is based in the challenge of addressing climate change. 
 
Mike Borgatti, Vice President for RTO Services and Regulatory Affairs at energy consultancy Gabel Associates, explains the debate over carbon pricing in electricity markets, and the FERC’s recent, contentious efforts to balance conflicting state and national climate agendas.